Paystand, a platform using blockchain technology to automate commercial payments, has raised $20 million in Series B funding round.
The series B funding comes from DNX Ventures, Battery Ventures, Epic Ventures, Commerce Ventures, and Wildcat Ventures. Existing investors include BlueRun Ventures, Leap Global Partners, Cervin Ventures, and Serra Ventures.
The firm’s service is based on a blockchain network that it says provides “real-time, fund-verified” payments, allowing businesses to move money around instantly.
Paystand says it digitises and automates the payment lifecycle, from invoice to reconciliation, by integrating with client businesses’ databases. It aims to makes complex commercial transactions and payments as easy and fast for enterprises as Venmo has done. It operates on a subscription model that moves customers away from fee-based transactions.
Paystand’s technology digitises the cash cycle for companies in a variety of industries, from insurance to manufacturing, transportation, and pharmaceuticals. It has a hybrid blockchain system, made of a public component for security and traceability, connected to private infrastructure for scaling.
Mitch Kitamura, a managing director at DNX Ventures, said in a statement that Venmo, PayPal, and Square Cash have made many advancements in the consumer payments sector. But he said that $18.5 trillion in invoices (according to South Main Capital) are still paid with paper checks.
DNX will assist Paystand in its expansion in Japan, Kitamura said – a market that is inefficient by way of being largely cash-based and could benefit in both time and cost savings from Paystand’s payments automation.