PayStand, Santa Cruz-Based Startup, Takes On PayPal

PayStand begins, with 1,000 customers and $1 million in seed funding.

PayStand is looking to take a bite out of PayPal.

Despite robust competition in the online payments sector, the Santa Cruz-based startup is seeking to take advantage of some merchants' discontent with PayPal's fees and take a sector of the market for itself, according to the Silicon Valley Business Journal.

Venture capital is quite interested in how people pay, the newspaper noted, with investors getting behind the likes of Square, Stripe and others, the newspaper reported.

PayStand is aiming for "small and mid-sized merchants and nonprofits" sick of the fees for processing credit card payments and checking account transfers charged by PayPal, the newspaper reported.

Bitcoin, for example, is processed for free by PayStand, the newspaper reported. Processing other cash is done for a monthly fee, depending on how big an organization is, the newspaper reported.

So far, PayStand has 1,000 customers and $1 million in venture capital behind it, the newspaper reported.

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