Payoneer Inc., a global provider of payment processing technologies, has raised $180 million to continue developing its payment services. Thus, the total sum of Payoneer’s funding reaches $275 million.
Growth-equity firm TCV led the round, with Susquehanna Growth Equity being among the investors. Remarkably, TCV tends to invest in companies that are growing at least 40 percent a year. Payoneer reveals that it will focus on improving and adding new technology – an important step to take advantage of companies increasingly digitizing operations.
The company’s chief executive officer Scott Galit states that Payoneer is surely profitable, with the new money only doubling the product development and technical staff.
“We are in the business of helping businesses trade with other businesses across borders,” says Galit. “We have local collection capabilities around the world. This is something that Visa and MasterCard do with consumer payments, but it doesn’t exist in business-to-business.”
Payoneer, founded in 2005, focuses on digital cross-border payments and transaction-related services. Payoneer’s technology allows businesses moving money globally and handles the regulatory and currency issues that come with international transactions. Traditionally, payments startups rely on the existing credit card infrastructure while Payoneer has its own connectors at banks, which allows avoiding the transaction fees. The main aim of additional investment is providing more workforce and global presence and building a bigger acquisition arsenal.
Payoneer’s technology eliminates the need for small- and medium-sized companies to use checks and paper. Instead, it allows paying and managing invoices over the internet. Amazon.com Inc., Google, Airbnb Inc. and Getty Images are among the companies that use Payoneer. About half of Payoneer’s revenue comes from bulk payout.
“As much as we’ve grown, we think we’re in really early days,” Galit said. “If you’re a small business trading internationally, you need financial services and other services that warp around payments — those are the things we’re thinking about.”
“Where they’re going to be in 12 months, 18 months, is going to be significantly different,” he added. “The goal is to become a global platform for people to deal with international trade, so there’s lots of things to work on the product side, and there’s also the regulatory and compliance side.”
Earlier this year, Payoneer acquired Armor Payments, the California-based escrow-as-a-service payment company. The combination of Armor Payments’ escrow service and Payoneer’s expertise within the cross-border transactions market is expected to help companies to enhance B2B payments around the globe. The partnership will simplify the process of transferring funds, removing bureaucratic hurdles of international payments.