Type to search

Crypto News Paytech

Paystand Launches the World’s First AR-Centric Dynamic Discounting Application, Powered by Blockchain Smart Contracts

Paystand Launches the World’s First AR-Centric Dynamic Discounting Application, Powered by Blockchain Smart Contracts | Fintech Finance

Paystand, the leader in blockchain-enabled B2B payments, today launched the world’s first dynamic discounting application designed for seller accounts receivable (AR) teams and powered by Ethereum smart contracts. This is the first solution to enable seller AR teams to offer buyer accounts payable (AP) teams dynamic early payment discounts. Early payment discounts incentivize buyers to pay sooner and give Paystand AR teams earlier access to cash, reducing days sales outstanding (DSO). More than 400,000 buyer AP teams using the Paystand payments network can start reaping the benefits of early pay discounts and faster payment, using blockchain-powered smart contracts technology.

“Early access to cash is key to business survival in today’s recessionary and inflationary environment,” said Jeremy Almond, CEO and Co-Founder, Paystand. “While early payment terms (e.g. 2/10, net 30) have always been buried in paper and electronic B2B contracts as generalized static terms, seller AR teams have not been able to take advantage of these to speed their cash flow. Paystand is the first company to use blockchain as a technology innovation that will reshape the whole industry.”

“Paystand’s first-of-a-kind dynamic discounting application puts the power in the hands of AR, by allowing them to initiate dynamic discount offers that are auto-executed via smart contracts, with digital funds transfer over a verifiable, blockchain-based network,” Almond continued. “With a zero transaction fees model, AP teams don’t have to split their cash discounts with a third party. Optimizing cash cycles for both sellers and buyers is key to Paystand’s mission of transforming business payments to be #Cashless, #Feeless, #Instant, #Self-driving, and #Open and Programmable.”

Many industries and buyers are known as slow to pay, and until now, AR departments have been at the mercy of buyers, with little recourse in accelerating payment to improve cash flow. To date, dynamic discounting systems have been designed for large AP customers who have significant leverage with their sellers to offer static, take it or leave it discount rates to sellers. Overreliance on buyer-side AP, legal, treasury, third-party AP platforms and factors to initiate and finalize commercial arrangements have caused friction and delays, precluding the vast majority of suppliers from benefiting from faster payments.

With its AR-centric, dynamic discounting solution, Paystand has turned traditional dynamic discounting on its head. Through this dynamic discounting solution, suppliers control the terms of discounts, allowing them far more flexible terms and time-sensitive discounts anytime between the customer invoice creation date and the due date.

According to Bob Cohen, Senior Vice President of Research, at Ardent Partners, a leading P2P industry research firm, ”While Dynamic Discounting solutions are typically sold to buying organizations, the return on investment in these solutions is directly linked to the level of internal usage and supplier participation. To create an incentive for suppliers to link to a Dynamic Discounting platform, the solutions should reflect supplier requirements and create value for participating suppliers.”

Tags:

People in this post:

Companies in this post:

Next Up