Blockchain-Based Payments and Rebooting the Financial System

https://finovate.com/blockchain-based-payments-and-rebooting-the-financial-system/
http://finovate.com/wp-content/uploads/2019/11/Jeremy-Almond-High-Res-832x800.jpg?#

Paystand CEO Jeremy Almond
knows a thing or two about business payments. Since co-founding the
company in 2013, Almond has implemented numerous improvements to
the company’s payments engine, taking full advantage of the
blockchain.

Among Paystand’s most recent debuts are the company’s 2018
launch of a blockchain that ensures payment, storing an immutable
record of every transaction the company processes. Earlier this
year, Paystand
launched
the Assurety-as-a-Service API that leverages the
company’s blockchain to prevent fraud. Paystand also
unveiled
Automated Receivables, a tool that leverages the
blockchain to automate invoice collection.

Almond is a 15-year veteran of the tech industry, having served
as a serial entrepreneur, startup advisor, and occasional investor.
Almond helped co-found PayStand in 2013 and has since been at the
helm of the company as CEO. We caught up with him in an interview
earlier this month.

Finovate: What is Paystand and how does it differ from other
online payment gateways?

Jeremy Almond: Paystand is a commercial
payments platform that automates the entire cash cycle, from
invoicing to reconciliation, to make payments an easy, effortless
experience.

Today’s financial system is plagued by costly fees,
inefficiencies, and paper-driven processes. We believe this broken
system is holding businesses back, so we created Paystand to
eliminate fees and build the payment framework for the digital
era.

Much the same way that Netflix came along and completely
re-thought consumption of media or how Tesla has come to market
with not just a new vehicle but a business model and mission
focused on energy independence, Paystand differentiates itself with
its Payments-as-a-Service model. The outdated, inefficient,
fee-based approach to commercial payments and money movement no
longer makes sense. Instead of taking a cut from every customer
sale, our customers pay a flat monthly rate to use our payment
software. Essentially, it is unlimited “consumption” for
payments with predictable costs. This means that as our
customers’ businesses grow, their profits increase instead of
their fees.

We’ve also built the most complete digital payment network
available to businesses. Using the Paystand Bank Network, customers
can move money electronically without paying any fees. It’s the
industry’s first zero-cost rail, and the easiest way for
businesses to get paid today. It’s also the only blockchain-based
payments infrastructure that has been tested at scale with millions
of transactions and enterprise volume.

Finovate: You’re a startup investor yourself. How does that
influence how you’ve built Paystand?

Almond: Most venture-backed startups fail,
especially the high-potential ones. Everyone is hungry to find the
next Uber or Facebook, so it’s easier than ever to start a
company and get funded. But building a startup that lasts isn’t
easy. I think many founders underestimate that and end up spending
their time and resources chasing quick exits and unicorn
status.

That’s why we do things completely different at Paystand.
We’re focused on building a sustainable business that solves
real, meaningful problems. There’s a certain business pacing you
have to keep up to attract the right investors and gather momentum
around your vision. So driving that kind of sustainable growth is
our top priority.

Over time, I believe we’re going to see a shift away from
companies constantly raising equity to this sustainable growth
approach. If you look at the market today, especially after
Zoom’s IPO, there’s a real appetite for businesses with a clear
path to profitability.

In many ways, being an investor has been an advantage to
building Paystand.

Finovate: Tell us about Paystand’s new Fintech Advisory
Council launched earlier this year. What was the impetus for
this?

Almond: The need for the Fintech Advisory
Council really came from our growth. We’ve nearly tripled our
revenue this year, which is more than an 8x increase since raising
our Series A round. So we built the advisory council to help us
scale our product innovation and better meet this demand.

We didn’t make the appointments lightly. These are people who
are literally the top of the top for financial services and B2B
fintech. CheckFree founder Pete Kight, for example, made it
possible to pay bills online with your bank account. Other advisors
include the former president of Bill.com and the former CEO of
Yahoo. Having these pioneers on our side, guiding us, is going to
be a massive value ad as we build the next chapter in commercial
finance.

This is a huge mission we’re talking about — rebooting the
financial system. Our Fintech Advisory Council is going to help us
make that happen.

Finovate: Paystand recently surpassed 100,000 businesses using
its platform. What new features does Paystand have in the works to
garner its next 100,000 users?

Almond: Although we recently surpassed 100,000
businesses using the platform, we know we’re still just
scratching the surface. There are over 6 million B2B companies in
the United States alone. And 18 trillion dollars still moves
between businesses via paper check every year in this country.
That’s a staggering figure. Those businesses need a modern
payment solution that doesn’t penalize growth via more and higher
fees. So, we’re focused on continuing to deliver the best payment
solutions to that market with our core payment platform. We plan on
deepening our integrations and relationships with core systems of
record like NetSuite to further provide seamless automation of
accounts receivable workflows.

At the same time, we’re continuing to build innovative
products to enable automation and reduce friction for the entire
downstream network involved in payments. We recently launched
Autopilot, our receivables automation product that helps companies
reduce DSO, decrease late payments, and improve the customer
payment experience. And our newly launched Payment Portal gives all
of their downstream payers an intuitive interface to view their
payments, payer history, and access our payment platform.

Every day, more businesses are making the shift to a more open,
inclusive commercial payments infrastructure and are rejecting the
outdated, fee-based model that no longer makes sense. We’re proud
to help them on their journey.

The post
Blockchain-Based Payments and Rebooting the Financial System

appeared first on Finovate.

https://finovate.com/blockchain-based-payments-and-rebooting-the-financial-system/