Blockchain-enabled B2B payments company PayStand has acquired Mexican FinTech Yaydoo, marking what the company called “one of the biggest technology unions” in Latin America.
PayStand said in a Wednesday (Aug. 3) press release that the scale of the combined company could put it on the path to an initial public offering (IPO) in the next two years.
Both PayStand and Yaydoo have created accounts receivable (AR) and accounts payable (AP) solutions for American and Latin American businesses, and they have built B2B decentralized finance (DeFi) payment networks in both the United States and Mexico, the release stated.
“The combined company will be one of the first global B2B blockchain platforms at a significant scale,” said PayStand CEO Jeremy Almond in the release. “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.”
Yaydoo CEO Sergio Almaguer said in the release that the acquisition will open opportunities to automate supply chain finance “through the imports and exports of one of the most active trade corridors globally” while also forming B2B payments alliances between the U.S. and Mexico.
Last month, PayStand launched what it called the world’s first dynamic discounting application for seller AR teams, powered by Ethereum smart contracts.
Read more: Paystand Unveils AR-Centric Dynamic Discount App
Early payment discounts give buyers an incentive to pay sooner, giving Paystand AR customers earlier access to cash, and thus reducing their days sales outstanding (DSO) through blockchain-powered smart contracts technology.
“Early access to cash is key to business survival in today’s recessionary and inflationary environment,” said Almond at the time. “While early payment terms … have always been buried in paper and electronic B2B contracts as generalized static terms, seller AR teams have not been able to take advantage of these to speed their cash flow.”