SCOTTS VALLEY, California – (BUSINESS WIRE) – Paystand, a leader in blockchain-enabled B2B payments, today launched the world’s first dynamic rebate application designed for merchant accounts (AR) teams and powered by Ethereum smart contracts. This is the first solution that enables the seller’s AR team to offer dynamic discounts for early payment. Early payment discounts encourage buyers to pay earlier and give Paystand AR teams earlier access to cash, reducing outstanding sales days (DSO). More than 400,000 buyers of AP teams using the Paystand payment network can begin to reap the benefits of early pay discounts and faster payments by using blockchain-driven smart contract technology.
“Early access to cash is the key to a company’s survival in today’s recession and inflation environment,” said Jeremy Almond, CEO and co-founder of Paystand. “While terms for early payment (eg 2/10, net 30) have always been buried in paper and electronic B2B contracts as generalized static terms, the seller’s AR team has not been able to utilize these to increase their cash flow. Paystand is the first company to use blockchain as a technology innovation that will transform the entire industry. ”
“Paystand’s first-of-its-kind dynamic rebate application puts power in the hands of AR, by letting them launch dynamic rebate offers executed automatically via smart contracts, with digital money transfer over a verifiable, blockchain-based network,” Almond continued. “With a zero transaction fee model, AP teams do not have to share their cash rebates with a third party. Optimizing cash cycles for both sellers and buyers is the key to Paystand’s mission to transform business payments into #Cashless, #Notless, #Immediate, #Self-Running and # Open and programmable. ”
Many industries and buyers are known to be slow to pay, and until now, AR departments have been at the mercy of buyers, with little opportunity to speed up payment to improve cash flow. To date, dynamic discount systems have been designed for large AP customers who have significant influence with their salespeople to offer static, take it or leave it to salespeople. Excessive reliance on buyer-side AP platforms, legal, treasury, third-party AP platforms, and factors in initiating and completing commercial arrangements have caused friction and delays, excluding the vast majority of vendors from benefiting from faster payments.
With its AR-centric, dynamic discount solution, Paystand has turned traditional dynamic discount on its head. Through this dynamic discount solution, suppliers control the terms of discounts, giving them far more flexible terms and time-sensitive discounts at any time between the date of creation of the customer invoice and the due date.
According to Bob Cohen, Senior Vice President of Research at Ardent Partners, a leading P2P industrial research firm, “Although dynamic discount solutions are typically sold to purchasing organizations, the return on investment in these solutions is directly related to the level of internal use and supplier involvement. To create an incentive for vendors to connect to a Dynamic Discounting platform, the solutions should reflect vendor requirements and create value for participating vendors. ”
AR departments recognize dynamic discounting as a significant opportunity to improve cash flow. Offering these discounts dynamically through the blockchain, with no financial intermediary or fee to close the gap, means providers can leverage the flexibility of an optimized, graded discount versus having no discount option at all or giving them through a cumbersome, manual process.
Dynamic Discount is available to all Paystand monthly subscription customers as an additional offer.
About Paystand
Paystand is on a mission to create an open and fair commercial financial system, starting with a free B2B payments network. Using blockchain and cloud technology, Paystand enables you to digitize receivables, automate processing, reduce cash time, eliminate transaction fees and enable new revenue. In August 2021, Paystand was named Inc. 5000 List for the second year in a row. Paystand has raised $ 86 million and was named the 2021 CB Insights Fintech 250 as one of the world’s most promising privately owned fintechs. For more information on Paystand, visit us at paystand.com. Follow our blog, and get in touch with us further Twitter and LinkedIn.
