SWOT Analysis of Payoneer | Strengths of Payoneer, Weakness of Payoneer, Opportunities & Threats of Payoneer.
1. What is Payoneer?
Payoneer is a global payment platform that provides payment services for consumers and merchants.
The company has its presence in more than 150 countries, making it the world’s largest international payment service provider.
It was founded in 2005 by Yuval Tal and the headquartered is in New York.
2. How is the Business Model of Payoneer?
The Company provides a wide range of payment services that enable end-to-end payment solutions for its users.
Payoneer has set out to provide a comprehensive product suite that supports its customers in managing their end-to-end payment transactions.
The company offers a wide range of payment services, including merchant services, remittance and international money transfers, one-time payments and bill payments, prepaid cards and bill presentment and collection services.
This set of services enables its customers to process all their payments in one platform.
The company is globally diversified, which contributes to its competitive advantage. This allows it to offer global services across the globe, with regional offices in various countries.
3. How does Payoneer Makes Money?
Payoneer provides a wide range of payment services. The company offers its customers with various products and services that can be used to manage their end-to-end payment transactions.
These include the following:
a) Merchant Services – This service enables merchants to accept payments from their customers in different currencies across the world via credit cards, debit cards, ACH, eChecks, PayPal and several other alternative methods. Payoneer provides merchants with an option to get paid in local currency or get converted into US Dollars immediately.
b) Transfer Fees- This service enables end-to-end transfer of funds in different currencies across the world via ACH, Western Union, MoneyGram , Payoneer Transfer and other payment systems.
c) Bill Payments – This service provides users the ability to pay their bills quickly and easily using many payment methods including credit or debit cards, ACH, eChecks and other alternative payment options.
d) Prepaid Card – This service allows users to manage and control all their payments from a single platform. Users can load funds on this card using credit or debit cards, ACH or eChecks. This ensures that they are able to make payments conveniently even when they are out of the country.e)
e) Bill Collection – This service enables payers to offer their customers convenient payment options for utility bills, taxes, collectibles and other recurring bills by giving them the ability to access these accounts online or via an app without incurring any bank fees.
f) One-Time Payments – This service provides users with convenient ways to make online payments for goods or services when they are traveling, working or studying outside their home country. It also allows them to pay back international suppliers
g) International Money Transfers – This service enables users to send money to, or receive money from friends and family in different countries.
h) Transaction fees – The company charges transaction fees for each payment that is processed through its network. These fees are based on the nature or value of the transaction, with credit or debit card transactions attracting higher transaction fees than others.
i) Financial income – The Company earns financial income by providing users with their local currency cashback in conjunction with selling prepaid cards. These cards may be used to make online purchases, pay bills and charges, or withdraw cash at an ATM.
j) Buying and Selling – The company has a trading platform that enables it to buy and sell currencies during market fluctuations. This activity generates revenues from the spread that is realized by Payoneer.
k) Cash back- The Company offers end-to-end services for all their customers. This includes offering cashbacks, rebates and rewards on payments made, helping payers earn money whenever they make payments to other banks or card companies.
4. Payoneer Revenues and Financials
Their revenue growth is primarily driven by its membership base.
It has captured 45 percent of the total cross border transactions in the US, recording a total transaction volume of approximately $26 billion.
The company efficiently manages this growing market share through its offering and service portfolio.
It also provides merchants with an option to get paid in local currency or get converted into US Dollars immediately.
Since 2005 Payoneer has raised over $265 million from investors including Lightspeed Venture Partners and Accel Partners.
The company also raised nearly $500 million in debt and equity financing, and sold or leased more than 1,000 locations around the world to operate its business and deliver its products.$3.3 billion at closing, with $300 million coming from private investment in public equity.
The company has signed up over 3.5 million merchants and 2.2 million clients for its international money transfer service.
5. Payoneer Partners
a) Payoneer is a member of the National Association of Corporate Directors (NACD) and is required to comply with NACD’s Corporate Governance Principles.
b) Payoneer has partnered with the Hong Kong Association of Banks (HKAB) to promote know-your-customer protocol and compliance standards across the banking system.
c) The company is also a founding member of ACI Worldwide Partner Program. ACI is a leading provider of payment processing software and services for financial institutions, corporations, and governments worldwide.
d) IBK Bank- The Company uses IBK Bank for its remittance service. IBK is a leading bank in Ukraine with an extensive network of branches and ATMs across Ukraine. The bank has approximately 700,000 business and personal customers and employs 21,000 people. IBK Bank grew stronger after the Russian market was closed to foreign investors.
e) Bancontact- ACI partnered with Bancontact to provide its peer-to-peer payment processing service in countries such as France, Belgium, Switzerland and Luxembourg.
f) CashBank- This service is provided by CashBank partners who are licensed to conduct currency exchange business.
g) KB KOOKmin- This service is provided by KB Kookmin in South Korea. This bank operates over 600 ATMs across the country with over 150,000 transaction counters.
6. Payoneer Competitors
a) PayPal– PayPal is an international digital payments and e-commerce company. It has global market shares in both the cross border and domestic payment processing space. PayPal has a presence in more than 200 countries and territories across the world. It offers its users payment, business and money transfer services.
b) Skrill- Skrill is an international money transfer service. Through its platform it helps users to send money internationally to over 170 countries across the world. Skrill helps people to transfer money internationally to their family and friends, or shop online at websites that are not available in their home country.
c) Square- Square is an independent payment card processing company that allows people to accept credit cards and cash payments from customers on their mobile devices. Square acts as a middleman between sellers and buyers allowing them to transfer funds into the mode of their choice for easy payment of goods or services.
d) G2 Deals- G2 deal is an international money transfer service that helps users to transfer funds across international borders. The company operates through a network of licensed partners who offer their services online to customers globally.
e) Adyen- Adyen is an international payments and payroll provider. It allows businesses to accept credit and debit card payments while offering seamless cross border payments, eliminating the need for expensive international transfers.
f) BlueSnap- BlueSnap is an international money transfer service that enables users to transfer funds to anyone in the world, online or through a mobile app. BlueSnap also provides remittance agents with a shift to shift to a mobile-first experience.
g) WePay- WePay is an international payment service that allows businesses to accept credit or debit card payments from customers around the world. It also enables users to transfer money instantly to a range of friends, family and colleagues online or via a mobile app.
7. SWOT Analysis of Payoneer
Strengths of Payoneer
a) Global Brand- Payoneer is well-known among Pay to customers. This gives it an advantage in the cross border transaction business as the company’s name has already become associated with convenient, trustworthy and efficient payment processing.
b) Customer Satisfaction- the Company has proven itself to be a reliable service provider with a high-quality customer service experience. This shows that there is public trust in its services, despite the fact that they are still relatively new in the market space.
c) Network of Operators- the Company has a network of authorized operators who can help with their transactions. This allows it to reach a wider customer base and increase the number of its customers.
d) International Focus- Payoneer has a global location, which allows it to provide cross border services to more people.
e) Low Fees- Payoneer has lower fees than most international payment processing companies.
f) Customer service- Payoneer has excellent customer service that is available to users via email, phone or social media options.
g) Fast Payments- Users receive payments quickly through the platform.
h) Local Currency Transactions- the Company enables users to receive their payments in local currency which helps reduce exchange rate risks, giving them more control over the value of their money.
i ) Easy Setup- The company has an easy setup process that can be completed in less than two minutes.
j) Developing Economies -The Company offers cross border payments to those who do not have access to traditional banking systems.
k) International Payments- Payoneer can send payments and transfers to individuals and companies in more than 190 countries and territories around the world.
l) Operates On A Large Scale -Payoneer is always expanding its activities and services, allowing it to grow fast.
m) Good Reputation- Payoneer has a good reputation in the market and there is a high level of trust in its services. This allows it to outpace its competitors.
n) Access To New Markets – Through the company’s partnerships with online payment providers, users can accept payments from international customers on their website or mobile app.
Weaknesses of Payoneer
a) Risk Of Fraud- Although fraud rates are low, Payoneer still faces fraud accusation from time to time.
b) Fee Structure- The company has a fee structure that is higher than the industry average.
c) Lack of Reliability- the Company has dealt with some issues in the past, which could have put off potential customers.
d) International Expansion- The Company’s international expansion has not been enough to address all of its customers’ needs so far.
e) Strict Approval Policies – Payoneer insists on a strict approval process for its partners, which could lead to a lack of service in some cases.
f) Limited Acceptability- the Company can only be used to accept payments and money transfers from certain countries and agencies.
g) No Mobile Apps- Payoneer does not currently offer a mobile app which means that its users can only access its services on personal computers.
h) Downtime- The Company has experienced some downtime in the past, which could have dented its reputation as a reliable service provider.
i) Complex Payment Structure- Payoneer’s payment structure is more complex than that of its competitors, which can be confusing for users.
j) Lack Of An App Store – The Company has no app store.
Opportunities for Payoneer
a) Opportunities For Growth- The Company’s main focus is on developing countries, which means that there is room to grow in these regions.
b) Internet Growth- Internet use is growing across the world at a fast rate, which creates opportunities for cross border payment services.
c) New Revenue Streams- the Company’s growth in new revenue streams will help it to increase its user base and reduce fraud complaints.
d) Increased Internationalization – The Company is currently expanding its international reach, which is creating great opportunities for its growth.
e) Global Expansion- The company is planning to expand outside of the US and UK/Europe in the coming years, which will create more opportunities for growth.
f) Partnerships- The Company is increasing its partnerships with payment network providers, which means that it will be able to reach a larger number of customers.
g) Increase In Frequency- The Company is increasing its frequency for product offerings, which will allow it to process a greater number of transactions.
h) Marketing Campaigns- Payoneer has been running marketing campaigns in the past, which have helped with its growth.
i) Growing Mobile Market- the mobile payments market is growing fast, which opens up new opportunities for Payoneer.
Threats to Payoneer
a) Threat of New Entrants– the Company’s main competitors are other cross border payment services and foreign exchange companies. These competitors could pose a threat to its business.
b) Bank Partnerships- Bank partnerships play an important role in the cross border payment industry and Payoneer relies on bank partners to stay competitive in the market place.
c) Regulatory Risks – Regulatory risks could damage the company’s investment opportunities and its relationships with customers and partners.
d) Threat of Substitutes- The threat of substitutes is strong in the cross border payment industry due to the existence of numerous competitors.
e) Hacking & Fraud- Security risks are high in this industry, which could lead to account theft or fraud.
f) Partnerships- Partnering with additional digital payment companies could cause the company to lose business to its competitors.
g) International Regulations- Payoneer must comply with foreign regulations, which can increase operating costs and restrict future growth opportunities.
h) Competition- The Company is one of many cross border payment services that work together in the market, making it more difficult for them to differentiate themselves.
i) Economic Risks- the Company will have to deal with socio/political instability which could impact the value of its investments and customer relationships.
j) Loss of Investors- Payoneer has a high amount of investment capital, which makes it vulnerable to losing investors if the economy declines.
8. Marketing Strategy
a) Brand Awareness Campaigns – Payoneer is pushing for a large amount of brand awareness by investing money in marketing campaigns.
b) Segmentation – Payoneer targets segmented campaigns to the type of user that it wants to attract.
c) Product Differentiation – Payoneer has different products for different types of users.
d) Target Market Segmentation – The Company is segmenting its target market based on its products and services.
e) Consumer Behavior – Payoneer’s marketing campaigns are influenced by customer behavior in the market.
f) Capabilities and Resources – The Company’s capabilities and resources determine how it markets itself.
g) Expansion – Payoneer is planning to expand into other countries in the near future.
What Is The Business Model Of Payoneer?
The business model of Payoneer is all about providing its members with cross border payment solutions for their transactions. It offers these services from the following areas.
Which countries are supported by Payoneer?
Payoneer supports payments via its payment software in the following countries: USA, Canada, Mexico, Netherlands, France, Spain, Japan and South Africa.
What is the role of Banco do Brasil in relation to Payoneer?
Banco do Brasil is an important financial partner of payoneer. It serves as a gateway for payoneer’s international wire transfers and currency exchange.
How do I register with Payoneer?
To register with Payoneer, you can go online to any of the following websites: www.payoneer.com; www.paymentgatewayprivacypro.com; or www.paymentgatewayprivacypro.ca.
If you are looking for more information on how to fund your account, read on…
Why does Payoneer charge its users?
The company makes money through charging fees because it offers its services in an industry where many companies provide similar services.
How does Payoneer make its profits?
Payoneer makes its profits from the transactions that companies make to them and the cross border payments done through them.
How do I receive money from Payoneer?
Payoneer receives money from payments that companies make to it through cross border transactions. In order to receive payment, all you have to do is log onto Payoneer’s website and make a payment request.
How Payoneer products were first designed?
Payoneer’s first products were designed for online business owners who had to pay freelancers located in other countries.
After this initial market research, the company began to adapt its services for other users across all industries.
Does Payoneer accept debit card?
Yes, in order to fund your account you can use your debit card. To do this, enter the amount that you would like to deposit in the bank account area and then confirm the deposit.
Why is Payoneer different from other companies?
Payoneer is different from many other companies because it takes pride in providing its members with comprehensive cross border payment solutions.
It offers services which are beneficial to both business owners and employees. It does not keep any information about its users or their transactions on its servers.
Can I make instant payments through Payoneer?
Yes, you can make instant payments through Payoneer by making use of the instant payment API.
However, you must keep in mind that only some users will qualify for the API and they must also meet certain requirements.
Why do we need API?
The API was designed to offer maximum flexibility to Payoneer’s customers by giving them full control over their account.
How do I know if an account is a valid API account?
Any account that has the phrase “Instant Payment API” on its bank login page is a valid API account.
The API can only be used for companies that meet certain requirements and have a bank account in the USA.
How does Payoneer protect my information?
Payoneer’s security policies are based on a combination of technology and business principles.
For example, Payoneer encrypts all of your payment details using 128-bit SSL encryption.
What is read/write permissions?
Read/write permissions will allow you to do a variety of things, depending on the rights that you have been assigned. These rights include:
- Creating a company account
- Billing your employees
- Accessing your account information
- Making instant payments, etc.