Quick Take

Scotts Valley-based Paystand is bringing the benefits of blockchain and Bitcoin technology to underbanked and unbanked populations, Jessica M. Pasko reports in her latest business roundup. Plus, find more on local comings and goings, numbers to know and events to add to your calendar.

Each week, we’ll be taking a closer look at the movers and shakers, the growth of industries, and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene each Wednesday.

Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.

Scotts Valley-based payments company launches new philanthropic arm amid continued growth

An estimated 70% of the population in Latin America lacks adequate access to traditional banking, whether due to living in remote areas, difficulty obtaining credit or high fees, or any number of other reasons. Blockchain and cryptocurrency technologies like Bitcoin have quickly gained steam as a way to circumvent some of these barriers to enable small businesses to make digital payments, allow workers working in other countries to easily send money back home to their families affordably and reduce reliance on the traditional banking industry. 

That’s the premise of a new philanthropic effort launched by Scotts Valley’s Paystand, with a goal of bringing these technologies to more people and democratizing the financial services industry. 

Paystand, founded in 2014, has become one of the fastest-growing business-to-business payments platforms, with more than 800,000 customers and over $90 million raised from investors. 

It is built on blockchain technology, which, in simple terms, is a distributed database or ledger that’s managed on a peer-to-peer network of computers. It’s the technology that underpins cryptocurrency systems to maintain a secure and decentralized record of transactions.

Paystand uses this technology to automate billing and payments for businesses to eliminate transaction fees, remove reliance on paper checks and speed up the time between payment and receipt. It’s similar to how Venmo and PayPal enable direct payments between individuals, except Paystand is strictly for businesses and it can be integrated with software used for order management and other related functions. Its customers range in size and industry and include the likes of local solar company Allterra Solar, Motorola Solutions and Super7, a vintage toy company.

Today, Paystand employs more than 300 people, including 36 at its Scotts Valley headquarters, and has seven offices across the United States and in Mexico. The company continues to build new partnerships with other business software providers to expand Paystand’s capabilities, and it has quickly racked up accolades. 

Now, its founders hope to take its success on the corporate side to bring the benefits of blockchain and Bitcoin technology to underbanked and unbanked populations, i.e., those who don’t have bank accounts and/or can’t get one for any number of reasons.

Paystand.org is the company’s new philanthropic arm, which CEO Jeremy Almond says builds on a mission to help more people conduct transactions outside the restrictions of traditional banks, credit unions and similar organizations.

“Our view was, if we can build a successful commercial entity on one side of the house, then we can use our skills, expertise and knowledge of the area to help an area of the community that’s been left behind,” said Almond. 

These efforts were already happening, but the creation of Paystand.org will allow for a more dedicated and expansive approach, according to Almond. In this case, Paystand isn’t building the decentralized financial services; its philanthropic arm mainly works with organizations that offer the kind of training and skills development that could ultimately be used to create these types of services. That includes working with nonprofit partners internationally to expand financial literacy and technology education, and build job skills. At the local level, one such partner is Digital NEST, which helps local youth develop skills for technology careers. Paystand is also working with My First Bitcoin, which is providing comprehensive Bitcoin and other technology in El Salvador to help pave the way for people to build careers in cryptocurrency.

Ch-ch-changes: Openings, closings and other developments

  • Santa Cruz County Bank recognized as a trailblazer: Independent Banker magazine, which focuses on the country’s independent community banks, recently recognized Santa Cruz County Bank for how it’s using technology to improve the customer experience. That includes streamlining back-end operations to free up staff to focus on customers and setting up an online portal to apply for Paycheck Protection Program (PPP) loans during the pandemic. (For a closer look at the regional bank, which just marked its 20th anniversary, go here.)
  • Fast Company recognizes Cruz Foam and Cruz as top innovative companies: Fast Company’s Most Innovative Companies of 2024 list includes some familiar names among the more than 600 companies around the world called out for their contributions. Santa Cruz-based Cruz Foam has been recognized for its environmentally friendly packaging materials, which provide an alternative to styrofoam. That includes the CruzCool, an insulated cooler for shipping frozen goods, and EcoVino, designed for shipping wine and spirits. Also on the list is Cruz, maker of the BlenderCap, which can turn refillable bottles into a personal smoothie blender. (Read my profile from December.)
  • Capitola gym closing this week: Capitola Fitness, located at 816 Bay Ave., is closing Thursday, March 28. All memberships will be transferred to Toadal Fitness.

Got hires, promotions, or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”

Looking at the numbers

  • $200,000: That’s the asking price for a collection of three automotive parts stores in the county – Kelley’s Service in Santa Cruz, Mid County Auto Supply in Capitola and Watsonville’s Townsend’s Auto Parts. Inventory isn’t included in the selling price, but may be negotiated, according to the listing.
  • More than $13 million: That’s how much Chevron has been ordered to pay in fines for its role in several oil spills throughout the state. 

Save the date

  • Thursday, April 11: The Santa Cruz County Chamber of Commerce will host its annual event honoring individuals, businesses and organizations for their contributions to the community. “A Night of Stars” takes place from 5:30 to 9 p.m. at the Cocoanut Grove Ballroom at the Santa Cruz Beach Boardwalk. Register here.
  • Wednesday, April 24: Santa Cruz Works holds its next CEO Works luncheon, this time with Candice Elliott, founder of Fortress and Flourish, a human resources firm. She’ll be sharing insights for leaders on attracting the right talent, standing out at job fairs, creating a thriving work environment and more. The event goes from 11:30 a.m. to 1:15 p.m. and is open to CEO Works members. To join for free, sign up here.
  • Thursday, May 16: The Santa Cruz County Chamber of Commerce hosts a ribbon-cutting for the Santa Cruz Community Credit Union’s new branch at 55 River St. in Santa Cruz, from 5 to 7 p.m. More details here.

Add your business or networking events to Lookout’s free public calendar, BOLO. Click here to add your event.

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Jessica M. Pasko has been writing professionally for almost two decades. She cut her teeth in journalism as a reporter for the Associated Press in her native Albany, New York, where she covered everything...