Paystand, which provides accounts receivable and business-to-business payments processing, said on Aug. 3 that it’s acquiring Yaydoo, a Mexican company whose services include accounts receivable and cash flow management.

By combining their U.S. and Mexico networks, Paystand said it will create the largest B2B receivables, payables, and payments network operating on a commercial blockchain, the technology that powers cryptocurrencies, according to a press release.

Scotts Valley, California-based Paystand has a staff of 225, while Yaydoo, headquartered in Mexico City, has 155 employees. Both companies have already raised money from investors, with Paystand raking in about $86 million and Yaydoo netting about $20 million.

A spokesperson for Paystand declined to comment on the terms of the transaction, including the price, but noted that it was the company's first-ever acquisition.

Both companies are privately held. In an emailed Aug. 8 statement, Paystand declined to provide details about the company’s finances, but said that it expected it could afford additional acquisitions.

“Paystand sees a significant opportunity to both grow and consolidate the market and has a healthy balance sheet and cash position to be able to do so in the future,” the statement said, without providing details.

Latin America is as much as 15 years behind the U.S. in terms of the development of its payment systems, which presents an investment opportunity for fintechs like Paystand, the company said. Fintechs have a big opportunity to build next-generation payments technology in the region, skipping over prevalent U.S. legacy technologies.

By Jonathan Berr on Aug 9, 2022
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