Podcast #18: Transacting in the Digital Economy with Paystand CEO Jeremy Almond
Advisor: Simon Erickson
The world may be going through a “digital transformation.” But North America’s still using paper checks for $18 trillion worth of annual business!
That’s a ton of money being wasted — some $550 billion each year — to manually process all of the paper. And while credit cards and online payments are more time-efficient solutions, the intermediaries are still charging a plethora of fixed and variable transaction fees. Between the banks, the credit card networks, and the processors, merchants are consistently giving up nearly 3% of every sale whenever a card is used. That adds up quickly!
Does our current payments system make sense any more for larger enterprises? If businesses are doing large-dollar transactions with customers they trust and have worked with for decades, should they still justify the time and fees that gets paid to those traditional financial intermediaries?
Jeremy Almond founded Paystand to directly address those questions. Paystand is building out a business payments platform for the digital age.
I recently spoke with Jeremy about his innovative concept of “payments as a service.” Rather than acting as a typical financial tollbooth (and ringing up fixed and variable fees for every transaction possible), Paystand has created a modern digital platform that allows for transactions to take place absolutely free. Businesses just pay a fixed monthly fee for unlimited usage; maximizing their capital efficiency and recognizing significant savings to the bottom line. As you might expect, CFOs tend to love this solution.
In our eighteenth official 7investing podcast, Jeremy describes how blockchains play a pivotal role in Paystand’s platform and how they’re disrupting the multi-trillion-dollar payments industry. He also explains why regulators actually support the use of blockchains, and how they’re being used for social networks, global remittance, and digital identity.
As a global traveler himself, Jeremy shares his favorite international location to visit. He also lays out two trends that investors should be watching right now.
0:10 – Introduction: North America’s paper problem and why Paystand was created
2:26 – “Payments as a Service” to avoid excessive credit card fees
6:08 – The benefits for customers from using digital payments
8:16 – How and why blockchains are becoming a transformative technology
11:47 – Ethereum and Smart Contracts
14:21 – Social networks using blockchains: the balance between innovation and regulation
18:41 – Blockchains for digital identity
20:46 – Foreign exchange and global remittance
23:56 – Two trends investors interested in digital payments should be watching right now
Publicly-traded companies mentioned in this interview include Amazon, Apple, Facebook, Google, MasterCard, Square, and Visa. 7investing’s advisors and/or guests may have positions in the companies that are mentioned.
This interview was originally recorded on June 24, 2020 and was first published on July 16, 2020.