PayStand Looks to Provide Alternative to Cash Management in Wake of Bank Panic

Neobank PayStand is looking to provide an alternative to bank cash management following the collapse of several banks and the ongoing panic regarding regional/smaller banks.

First, Silvergate Bank failed, followed by Silicon Valley Bank and First Republic. The ensuing fear, uncertainty, and doubt pushed people and businesses to rush for the exits of all regional banks. Concern increased that a wider run on the banking system was in the works.

Last Sunday, the Feds decided to take more decisive action by backstopping all deposits – not just those under $250,000. While this has mitigated much of the concern, money continues to exit some banks and flood into systemically important – or too-big-to-fail banks. It is still not clear what will happen to the FDIC $250K insurance cap.

Paystand, stating that the collapse of SVB “reflects an endemic risk” with the US banking system, has announced a new suite of AR and AP tools designed to help businesses manage their treasury and to optimize their cash flow under any set of market conditions.

Jeremy Almond, co-founder and CEO of PayStand, stated:

“The SVB situation exposes a risk in banking that few paid attention to. CFOs should not have to worry about the integrity of their financial infrastructure. Paystand, with its decentralized payment network operating on the blockchain, gives CFOs a better solution to collecting, accessing and managing their funds no matter what. These new tools reinforce our commitment to transforming the financial network for businesses around the world.”

Services include:

  • Smart Treasury Management for Accounts Receivable. Businesses can route their receivables automatically as they come in, directing the funds to the bank accounts they deem appropriate. By enabling deposit routing between unlimited banks and financial networks, CFOs can more easily diversify AR Deposits and Treasury Sweeping between multiple institutions and maximize the FDIC insurance benefits they offer.
  • Instant bill pay using AR funds; no need to interact with bank accounts. As receivables come in, merchants can immediately direct their funds to their DeFi Cards without leaving the Paystand Network. They can use their cards to seamlessly pay vendors and manage operating expenses without the risk, delay or friction associated with first settling to a bank. Merchants earn 1% back in Bitcoin on every purchase with DeFi Cards.

Paystand says the network transactions are zero-fee, and settle within one banking day. Paystand serves both US and Latin American customers.

 


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