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The New York-based financial services business has integrated escrow-as-a-service platform to enable secure B2B payments.
On Tuesday, the leading online payment services provider, Payoneer, has announced the acquisition of Armor Payments, the California-based escrow-as-a-service payment company. The financial details of the agreement were not revealed.
Payoneer is one of the largest companies within the sector of B2B payments. It eliminates geographical borders, offering secure and smooth global transactions. The company, which was opened in 2005, boasts a broad list of customers, including Airbnb, Amazon, Taboola, Fiverr, and Upwork.
The combination of Armor Payments’ escrow service and Payoneer’s expertise within the cross-border transactions market will help companies to enhance B2B payments around the globe. The partnership will simplify the process of transferring funds, removing bureaucratic hurdles of international payments.
“The payments infrastructure for businesses has hardly changed in the past 30 years and it’s time that businesses are given the same high level of trust, security and ease of use that consumers have been enjoying all this time,” said Payoneer’s CEO, Scott Galit.
“Payoneer is already a trusted provider of B2B payment services to millions of small businesses around the world. The escrow solution of Armor Payments fills in a critical missing link for B2B transactions, and moves beyond payments to address the trust gap that often exists between trading partners,” he added.
Payoneer will integrate Armor Payments’ software into its platform to allow B2B buyers and sellers to realize global escrow payments for transactions between $500 and $1 million, what exceeds the typical use limit of credit cards. The first combined services are planned to be launched this week.
“By acquiring Armor Payments, we are staying true to our vision of empowering global commerce by connecting businesses, professionals, countries and currencies. Our combined capabilities create a unique global platform that enables more businesses to grow faster by allowing them to securely trade across borders with more partners in more places, regardless of where they are in the world,” Galit stated.
With the acquisition, Armor Payments will be able to expand its services in new markets, as it was mainly focused on North America. The company’s team will join Payoneer’s offices in California, while its development hub will remain in North Carolina.
Armor Payments was founded in 2013 by CTO Mark French and former chief executive Scott Reynolds, who previously worked as a manager at PayPal and Mastercard.
“Joining Payoneer is a natural step for our company,” Reynolds commented. “It will open up our solutions to the huge and underserved international B2B market. Our EaaS solution enables B2B marketplaces to offer their customers secure, cost-effective methods of payment that can easily be built into their platforms. And SMBs all over the world can work and trade globally more effectively knowing both sides are fully protected from fraud.”
Payoneer will significantly speed up the growth of Armor Payments in the online payments industry. “We’re excited to work with Payoneer to disrupt the outdated B2B payments and trade infrastructure.”