At a time when global supply chain constraints have become a stiff headwind that is slowing the pace of eCommerce growth, anything that can reduce costs and get companies paid sooner is understandably in hot demand.
For New York-based digital payments and cross-border commerce firm Payoneer, that not only triggered a record number of new customers last quarter but a broadening of its portfolio of products available in an increasing array of countries around the world.
“We recently announced our partnership with Coupang in South Korea, the world’s fourth largest e commerce market so we are very happy with the momentum we are building with our Payoneer partner ecosystem,” CEO Scott Galit told analysts and inventors during the company’s third-quarter webcast on Wednesday (Nov. 10). He pointed to its new venture in Vietnam with more expected.
Read more: Payoneer, Coupang Team on South Korea eCommerce
“One of our key initiatives is growing our bank partnerships globally, as we collaborate with banks and mobile wallets around the world to acquire new customers and to offer our joint customers a unique integrated experience,” he said.
In discussing what it calls the “unique mix of high value services” it now provides — such as B2B accounts payable and receivable, bank partnerships, commercial cards, merchant services and working capital — Galit said the company’s platform and product portfolio had “fast-growing and increasingly diverse customer base.”
Officially, for the three months ending Sept. 30, Payoneer said its 16% increase in volume to $13.6 billion came alongside a 35% increase in revenues to $122.7 million. In addition, it said reduced transaction costs, which fell to 20% of revenue from 27% a year ago, also flowed through to the bottom line while bolstering the company’s confidence to raise its financial guidance for the coming quarter and a full year.
“While we are still in the relatively early stages of growth, we are optimistic about the unique value proposition we offer and the long runway ahead for this exciting opportunity,” Galit said.
Payoneer’s bullish outlook was applauded by traders who bid up the stock by nearly 10% in after-hours trading, partially reversing some of a recent 30% slump that has shaved roughly $1 billion off its market value since its SPAC merger listing was completed in late June.
See also: Payoneer Eyes ‘Growing Universe’ Of Connected Opportunities After $3B SPAC Listing
Even so, the company’s executive team said it was taking a conservative economic stance about the current quarter and end of the year.
“As we discussed earlier, supply chain issues continue to impact eCommerce and we want to take a conservative view on the upcoming holiday season,’ Chief Financial Officer Michael Levine said on the webcast. “International travel is not expected to accelerate meaningfully, so we are not forecasting significant benefit for Q4.”
Focus on SMBs
In outlining its plans, Payoneer said it will continue to focus on providing a global set of comprehensive solutions for small to midsized businesses (SMBs) around the world, with a particular focus on what it considers to be “new and exciting opportunities across a range of markets, including goods exporters, service providers, social commerce and more.”
As far as strategy is concerned, Galit said Payoneer aims to be “the world’s go-to partner for digital commerce everywhere.”
“We saw continued momentum globally with small businesses, marketplaces and partners who rely on Payoneer to provide them with the broad selection of services they need to pay and get paid, to grow and to manage their digital businesses,” Galit said.