Both companies will operate independently of the other. Although, there would be cross-selling of each other’s products in different markets. PayStand has its operations in the U.S., and Canada while Yaydoo cuts across Latin-speaking America, Colombia, Peru, Chile, and Mexico.
Meanwhile, the full terms of the agreement were not disclosed, nor was the cost of the acquisition.
Yaydoo is a procurement platform located in Mexico which builds and distributes financial automation technologies.
Its technologies help businesses streamline B2B payments using software focused on procurement, account payable, and account receivable processes. Yaydoo’s product offerings are targeted toward business-to-business transactions. A few of its products are VendorPlace, P-Card, and PorCobrar.
In 2016, Yaydoo participated in the 500 Startup Mexico City accelerator program. Then in 2018, Yaydoo raised its first and only seed fund through venture funding. It generated $22 million in this round with collaboration from Softbank and other investors. Yaydoo’s current valuation was not officially stated but its investors figured it would be around $6 million.
Non-Blockchain Firms Adopt Digital Technology
Equally important, PayStand is a B2B platform built on the ETH open source blockchain. It is designed to help businesses send and receive payments to and from customers and vendors. Notably, PayStand does these transactions efficiently and at a low cost.
Furthermore, the platform does not charge transaction fees for its operations. Instead, customers are made to pay a subscription charge. Therefore, it is safe to say PayStand operates a zero-fee payment network.
Last year, PayStand closed its Series C funding round and secured $50 million bringing the total funding of the company to $85 million. Unlike PayStand, Yaydoo is not designed on a blockchain digital system. Consequently, it might adopt PayStand’s technology.
Several other organizations are introducing blockchain and digital technology gradually into their operations. Many are doing this either through mergers or outright acquisitions. Ant Group, a Chinese financial technology firm launched a digital bank dubbed ANEXT in Singapore.
The agreement was signed with Proxtera, an institution that bridges the gap between B2B marketplace digitally to aid global trade for SMEs.
Together with Proxtera, ANEXT will develop a framework that will support SMEs with financing and risk control in global trades.