3 questions smbs ask about cross border payments · 12 office locations and growing payoneer at a...

3 Questions SMBs Ask About

Cross Border PaymentsRichard Gilbert

GM, North America

Payoneer

RichardGi@Payoneer.com

Payoneer At A Glance

35+

Languages supported

150

currencies with local

clearing (no landing fees);

20,000+

Corporate senders

12

Office locations

and growing

Payoneer at a Glance

800

Staff

3© 2016 Payoneer, Proprietary & Confidential

~3MM

Customers

200+

Countries and

territories

BILLIONS

of dollars in volume per

year

60.9%

CAGR over past

6 years

$117MM

Revenue 2015

PROFITABLE

Investors - Greylock, Carmel, SGE,

PingAn, Nyca, Wellington

MSB US & E-Money Licensed,

PCI DSS compliant

Fully regulated in the US, Europe and Hong Kong.

$200MM

Revenue 2016E

© 2016 Payoneer, Proprietary & Confidential 4

Our Offices

Hong KongChina

Palo AltoCalifornia

New York CityNew York

LondonUK

DurhamNorth Carolina

Gibraltar

BarcelonaSpain

Tel AvivIsrael

BangaloreIndia Manila

Philippines

TokyoJapan

ShanghaiChina

Stock

Photography

Vacation

Rentals

FreelancingTranslation

Design

Developers

Other

E-Commerce

Marketplaces

Digital

Marketing

5© 2016 Payoneer, Proprietary & Confidential

Payoneer

Clients

Compliance and Regulatory Status

6© 2016 Payoneer, Proprietary & Confidential

Payoneer is

PCI DSS

Level 1 compliant

Payoneer Inc. is a registered

Money Services Business

(MSB) with the U.S.

Department of Treasury’s

Financial Crimes

Enforcement Network

(FinCEN).

In addition, Payoneer

obtained the proper State-

level Money Transmitter

licensing, in every State

where it is required, and

offers licensed escrow

services through its

subsidiary, Armor Escrow.

Payoneer EU is a

regulated Electronic

Money Institution that

has passported its

license across the

entire EU and is a

Principal member

with MasterCard® EU

Payoneer is also an

Online Payment

Gateway Service

Provider in India, has a

Money Service

Operator License in

Hong Kong, and is a

Funds Transfer

Provider In JapanAs a U.S. entity,

Payoneer complies with

OFAC, and the

requirements of the

Bank Secrecy Act (BSA)

Why Go Cross Border?

What are the Considerations

for SMBs?

How do they do it?

8

Why Go Cross Border – New Sources of Growth

9

Why Go Cross Border? – Source product, talent or content

‘E-Commerce Isn’t Changing The World, Buyers Are Changing The World By Embracing Technology To Make Better Product Decisions’. Channel Advisor, Catalyst 2016

The worldwide expansion of the internet = new markets at drastically lower cost to entry.

E-commerce sales across the World are growing at double digit rates YOY.

Industry Forecasters are predicting that this continued growth could result in a global ecommerce market value of $3.3 Trillion with $1 Trillion CBT by 2020.

Mobile commerce growth - smartphones and tablets.10

International E-Commerce

11

International E-Commerce

Black Friday 2015 - $2.74 Billion

Cyber Monday 2015 - $3.07 Billion

Amazon Prime Day 2016 - $600 Million

12

Global E-Commerce Market Size

13

Data Never Sleeps – The Always “On” Community

14

Why Do Global Commerce?

What considerations when

expanding internationally?

Key Challenges for Global Sellers

Logistics / Customs

Language / Localization

Payments/ Currencies

Logistics Hurdles

Localization Challenges

19

Payments Are Hard

How do you do it?

The Amazon Way

22

Leveraging Marketplaces

23

Websites - The Key Acquisition Channel & Marketplaces - A

Source For New Direct Clients.

8%

42%

42%

69%

Other

“Word of Mouth” and referrals

Marketplaces

Website

What are your key channels for acquiring direct international clients?

Payoneer Survey Response From 380 Clients In N.A & Europe

24

Why Sell On Marketplaces?

Why do you work with marketplaces?

3%

29%

38%

52%

53%

68%

Other

Supports my digital brand

Diversify my business

Create additional revenue streams

Acquire additional direct clients

Payment guarantee

0% 10% 20% 30% 40% 50% 60% 70% 80%

Payoneer Survey Response From 380 Clients In NA & Europe

Additional Reasons:

Opportunity To Enter New Markets At Low Cost & Risk.

Exposure and increased reach through existing network of shoppers – Amazon 100 Million Active Users.

Leverage an existing Framework For Selling.

Incremental provision of additional services – Translation, Customer Service, Customs/ Duties, Product Fulfilment & Delivery, Returns.

Diversification - Selling On Multiple Marketplaces Increases Sales Revenue Dramatically.

25

Why Sell On Marketplaces?

26

A Day (or days) in the Life of an International Wire

The Payoneer Account – Global B2B Platform

27© 2016 Payoneer, Proprietary & Confidential

Marketplaces & PlatformsPayoneer is a featured payment

option on leading marketplaces.

Billing ServiceSend your direct clients a payment

request by email. They can then pay

safely online using their credit card or

company bank account.

Global Receiving AccountsWe give you US, EU, JP, and UK

receiving accounts so your

international clients can pay you as

cheaply as a local transfer.

In Network PaymentsBusiness partners and suppliers

can pay you from their Payoneer

account to yours, free of charge.

Local Bank WithdrawalEasily withdraw funds directly to

your local bank account in local

currency.

Withdraw Funds at ATMsThe Payoneer Prepaid MasterCard ®

enables you to withdraw cash from

ATMs worldwide within minutes.

Online & In-Store PurchasesUse the card to buy stuff – both re-

investing in your business as well as

personal needs.

Make a PaymentEasily collaborate with your vendors by

making payments to other Payoneer

customers free of charge.

4 WAYS

TO GET

PAID

4 WAYS TO

USE YOUR

EARNINGS

Accountex 2016

Richard Gilbert

RichardGi@Payoneer.com

GM – North America