Paystand acquires Yaydoo to enable B2B solutions across the Americas
By Edlyn Cardoza
Paystand, a blockchain-enabled accounts receivable and B2B payments provider, announced the acquisition of Yaydoo, an accounts payable, cash flow management, and liquidity solutions in Mexico and LatAm. The deal witnesses one of the biggest technology unions in Mexico and LatAm and makes commercial blockchain-based solutions more accessible across the Americas.
The fusion of the two firms opens a horizon for other tech startups and businesses in Latin America. PayStand and Yaydoo offer a wide range of technology-enabled B2B solutions for automating transactions, payment, and bill collection processes.
The two companies have built AR/AP solutions designed for the needs of businesses of all sizes in the U.S. and LatAm. They created B2B DeFi payment networks in the U.S. and Mexico, creating a network effect, and are now set on connecting their platforms through a single, open, instant and secure global payment network.
Jeremy Almond, CEO of Paystand, comments: “Together, Paystand and Yaydoo will redefine the boundaries of B2B fintech across the continent. The combined company will be one of the first global B2B blockchain platforms at a significant scale. The resulting company will have processed over $5 billion in payments, added 300 additional employees, and built a network of over 500,000 connected businesses, the largest of any commercial B2B blockchains in the world.”
Almond continued, “DeFi-enabled B2B payment networks that are on-chain can unlock transformative working capital efficiencies and make financial services more fair and open, especially in developing markets like LATAM. And we believe this industry disruption across borders and using DeFi blockchain can shift the balance of power from traditional financial institutions and governments to buyers, and sellers, benefitting business and society.”
According to Deloitte, nearly 50% of the $18 trillion in commercial payments in the U.S. are still paper checks, and most of the rest are still performed through a manual or pre-internet process. Automation using Web3 technologies across AR, AP, expense, procurement, and payments in a unified platform offers huge cash advantages to enterprises, helping the U.S. B2B payment market to hit a projected CAGR of more than 8% over the next five years.
According to Goldman Sachs, the global B2B payments market reached a value of $940 billion in 2021, and AR/AP software accounted for $130 billion of the total market size. Though this market size is significant, it only accounts for companies already using software or digital AR/AP solutions. In LATAM, less than 5% of companies are digitised, implying that the B2B payments opportunity in places like Mexico and other emerging markets offers a much larger green field.
“Yaydoo and Paystand have enabled B2B payment networks through their AR/AP software landscape. Now it’s time to join forces and deliver solutions that will simplify and digitalise trade among the U.S. and Mexico, unlocking a set of opportunities for automating supply chain finance through the imports and exports of one of the most active trade corridors globally,” said Sergio Almaguer, CEO of Yaydoo.
“Connecting the U.S. and Mexico is only the first step. We understand very well that each country has its own payables and receivables solutions enabling B2B payments locally. We want to forge long-time alliances with all these organisations that already know their market in order to build a network that embraces the entire continent,” concluded Sergio, who will continue leading the Latin American expansion of the combined company.
In the Americas, the combined company will have the capacity to expand from the U.S. to Canada and from Mexico to Colombia, where Paystand’s and Yaydoo’s products can be distributed through existing channels and integration partners. Currently, the companies have already integrated globally with Oracle NetSuite, Sage Intacct, Xero, and with CONTPAQi in Mexico, enabling access to the largest and most sophisticated mid-market opportunity on the continent.
“This is a watershed moment for both companies, the B2B payments ecosystem as a whole, and for the blossoming Latin America tech ecosystem in particular,” said Roman Leal, Managing Partner of LEAP Global Partners. “Equally exciting for small and medium enterprises (‘SMEs’) across the Americas, Paystand now represents the largest enterprise application leveraging blockchain technology to reduce the cost of digital payments and accelerate the time to cash. We believe this value proposition will resonate even more in this increasingly uncertain economic environment.”