PayStand, a blockchain business-to-business payments platform, has completed a $6 million funding round through BlueRun Ventures.
Other participants funding the Scotts Valley, Calif.-based payments-as-a-service company include Cervin Ventures, Serra Ventures, TiE and Capital for Founders.
PayStand uses blockchain technology to remove friction from the accounts receivable and payable process, simplifying what it calls one of the "most notorious headaches" for businesses — sending and collecting money. An end-to-end digital process, PayStand’s network automates cash management, from accounting software to reconciliation.
“With technology advanced enough to give us self-driving cars and rockets to Mars, there’s no reason finance should be stuck with paper checks and spreadsheets anymore,” Jeremy Almond, CEO and founder of PayStand, said in a Thursday press release.
“Yet most U.S. business payments still run on manual, pre-internet systems," Almond added. "PayStand takes the best of automation, customization and blockchain technology to finally bring B-to-B payments into the digital age."
PayStand users embed payments into their apps, websites and invoices to develop a digital network that supports traditional card and ACH processing as well as next-generation technology like e-check bank transfers and e-cash.
“Like the consumer and retail payment innovation that has preceded it, PayStand’s focus on building the future of back-office commercial payments melds seamlessly into our investment themes of digital transformation,” Jonathan Ebinger, general partner at BlueRun Ventures, said in the release. "The company is doing what we see common in every great fintech company in removing unnecessary friction and cost from the key financial processes that are vital to our economy."
PayStand is also testing its new Paystand AP solution, enabling businesses to completely automate their accounts payable for better security and control. The software is designed to save AP department time by eliminating the need to cut paper checks, the company said.
Over the past few years, PayStand has focused on point of sale advancements for mobile payments, bitcoin and e-checks.