The platform also seamlessly integrates with widely used business software such as Oracle and NetSuite, QuickBooks, Xerox, Salesforce, or any financial technology solutions that clients may have. “The moment our clients set up bills in their ERP system, we can digitize and automate the entire cash cycle from invoice, payments, and settlements to reconciliation,” says Jeremy Almond, CEO, PayStand.
The firm has architected a fixed cost model called "Payments as a Service" that charges enterprises a flat-rate for using its SaaS offering as opposed to a transaction or volume-based pricing model. According to Almond, the majority of current B2B payments are processed based on a "transaction fee model" and use legacy methods such as automated clearinghouse, paper checks, or credit cards. Since credit card companies impose fees between one and three percent transaction, it is not a practical solution for most businesses who either have significant payment volume or high-dollar value payments.
PayStand leverages blockchain and cloud technologies to build faster and automated payments solutions, helping enterprises automate manual processes and eliminate transaction costs
Citing a specific example, Almond highlights the case of a leading insurance carrier who received over half of their payments through paper check that took multiple days for the Accounts Receivable team to reconcile and record. In certain instances, late payments processing caused a lapse in insurance coverage of several policyholders (legally, the non-payment of premium leads to insurance coverage being regarded as invalid) that ended up in terrible customer experiences. In an effort to “go digital,” the client introduced payment via credit card as an option. Although this provided a better customer experience, the client lost significant profit due to the high transaction cost levied by credit card merchants. Partnering with the company, PayStand helped eliminate both the paper check payment method and high credit card transaction costs through its Payments-as-a-Service solution. Eventually, the client improved time to cash efficiency by 30 percent, reduced late-fee cost by 50 percent, and slashed transaction fees by over 70 percent.
Having successfully rolled out its Accounts Receivable solution, the firm has an impressive roadmap— extending the product's functionality to the Accounts Payable department, as well. Also, the firm plans to expand its product to other countries, having recently announced its support for Canadian payments and subsequently to other international markets.