Paystand launches corporate card with bitcoin rewards
B2B payments startup Paystand got its start using the blockchain to facilitate transactions for enterprise clients,. Now it’s offering a way for them to receive crypto rewards, with the launch of its DeFi corporate card.
Why it matters: With all the money streaming into crypto companies and corporate card startups, it was only a matter of time before crypto corporate cards became a key differentiator in the B2B payments space.
How it works: Paystand’s new card offering enables the provisioning of both physical and virtual cards, gives companies spend controls and makes possible real-time expense reporting — but the real selling point is the ability to earn bitcoin rewards with every purchase.
- Paystand has an institutional custodian that it works with to hold customers’ crypto, but they will also be able to transfer or withdraw any earned bitcoin into their own noncustodial wallet, Paystand CEO Jeremy Almond tells Axios.
Context: Paystand’s business is mostly focused on helping enterprise customers get paid with a “payments as a service” that moves money via the blockchain rather than traditional checking or credit card payments.
- “We decided to start on the receivables side, because revenue is the lifeblood of any business, and helping them get their money faster, cheaper, and more efficiently helps them be a more competitive company,” Almond says.
- The company has more than $4 billion in transaction volume and operates one of the largest commercial blockchains out there, with more than 300,000 companies getting paid through its platform, he added.
Yes, but: Paystand’s foray into corporate cards and spend management is relatively new — and, on that side of the ledger, the company faces fierce competition from well-funded rivals like Ramp, Brex, Airbase and others.
- Last week, Ramp announced it raised $200 million at an $8.1 billion valuation, and that’s after Brex achieved a $12.3 billion valuation in January.
- That said, only Brex offers crypto rewards on its corporate card today — but that could change as more businesses get comfortable with digital assets and alternative forms of payment.