New customers, lower costs increase Payoneer

In an age when the constraints of the global supply chain have become a headwind that is slowing the pace of e-commerce growth, anything that can cut costs and get businesses to pay sooner is understandably in high demand.

For New York-based digital payments and cross-border commerce company Payoneer, this not only sparked a record number of new customers in the last quarter, but also an expansion of its portfolio of products available in a growing number of countries across the world. world.

“We recently announced our partnership with Coupang in South Korea, the world’s fourth largest e-commerce marketplace, so we’re very pleased with the momentum we’re building with our ecosystem of Payoneer partners,” said CEO Scott Galit to analysts and inventors during the company’s third quarter. webcast Wednesday (November 10). He marked his new venture in Vietnam with more expectation.

Read more: Payoneer, Coupang Team on e-commerce in South Korea

“One of our key initiatives is to grow our banking partnerships on a global scale, as we work with banks and mobile wallets around the world to acquire new customers and provide our mutual customers with a unique integrated experience.” , did he declare.

By discussing what he calls the “unique blend of high-value services” he now provides – such as B2B accounts payable and receivable, banking partnerships, commercial cards, merchant services, and working capital – Galit said the platform and the company’s product portfolio were “quickly.” growing and increasingly diverse clientele.

Officially, for the three months ending September 30, Payoneer said its 16% increase in volume to $ 13.6 billion was accompanied by a 35% increase in revenue to $ 122.7 million. In addition, he said the reduction in transaction costs, which fell to 20% of revenue from 27% a year ago, has also trickled down to the bottom line while boosting the confidence of the company. company to raise its financial forecast for the next quarter and a full year.

“While we are still in the early stages of growth, we are optimistic about the unique value proposition we offer and the long lead ahead for this exciting opportunity,” said Galit.

Payoneer’s bullish outlook was applauded by traders who pushed the stock up nearly 10% in after-hours trading, partially reversing part of a recent 30% drop that slashed by around 1%. billion dollars its market value since the end of its PSPC merger listing. June.

See also: Payoneer envisions ‘growing universe’ of connected opportunities after $ 3 billion PSPC listing

Despite this, the company’s management team said it is taking a conservative economic stance for the current quarter and year-end.

“As we discussed earlier, supply chain issues continue to impact e-commerce and we want to take a conservative view of the upcoming holiday season,” CFO Michael Levine said at the webcast. “International travel is not expected to accelerate significantly, so we do not expect any significant benefits for the fourth quarter.”

Focus on SMEs

Outlining his plans, Payoneer said he would continue to focus on delivering a global set of comprehensive solutions for small and medium-sized enterprises (SMEs) around the world, with a particular focus on what it sees “exciting new opportunities in a range of markets, including commodity exporters, service providers, social commerce and more.

Regarding strategy, Galit said Payoneer aims to be “the go-to global partner for digital commerce everywhere”.

“We have seen continued momentum globally with small businesses, markets and partners who rely on Payoneer to provide them with the wide selection of services they need to pay and get paid, to grow and manage their businesses. digital activities, ”said Galit.

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