Paystand, a blockchain-enabled commercial payments platform, secured $20 million in Series B funding.
The funding round was led by DNX Ventures, Battery Ventures, Epic Ventures, Commerce Ventures, Wildcat Ventures, with participation from existing investors Leap Global Partners and BlueRun Ventures.
Paystand offers a commercial payment platform for midsize and enterprise companies. The platform helps businesses digitize, automate, and streamline their back-office operations.
According to the company, the platform is used by a variety of industries, including insurance, manufacturing, transportation, and pharmaceuticals. For example, the platform helps insurance companies digitally receive premium payments and send claims money and allows manufacturing companies to digitally pay suppliers and vendors.
The company’s enterprise customers include credit-card company JCB; manufacturing company Allied Aerofoam; retail engagement platform Punchh; stroller company Bugaboo; veterinary-technology company Covetrus; bedding and home-decor company Parachute Home; and Vast Bank, among others.
Paystand plans to use the funds to accelerate its products and services and expand sales, marketing, success, and engineering teams in its Scotts Valley, California, and Guadalajara, Mexico offices.
“We’ve seen significant disruption in consumer payments from companies like Venmo, PayPal, and Square Cash,” said Mitch Kitamura, a managing director at DNX Ventures. “However, US B2B payments represent an even larger opportunity – currently over half of the $25 trillion in B2B invoices are still paid in paper check – yet no one stepped in to disrupt the market until Paystand. We are thrilled to be part of the team to help them realize the transformation in B2B finance.”