Payoneer Merchant Services Grows 400% as Small Businesses Sell Globally

Demand for B2B and merchant services drove Payoneer’s volume growth in 2023.

The small- to medium-sized business (SMB)-focused FinTech company’s B2B volume rose 13% and its merchant services volume leapt 400% in the fourth quarter compared to the same period a year earlier, company executives said Wednesday (Feb. 28) during a quarterly earning call.

“We’re very encouraged with the overall momentum of the business,” Payoneer Chief Financial Officer Bea Ordonez said during the call. “We’re seeing increased penetration into that large B2B market, strong and improving take rate dynamics from that B2B growth, and stable growth and stable economics in our marketplace business.”

The company attributed this growth in part to its efforts to help SMBs access the digital, global economy and these customers’ increasing use of Payoneer’s financial stack to optimize their accounts payable (AP), according to a Wednesday earnings release.

“By capturing their cross-border AR [accounts receivable] and AP, we become an indispensable, trusted partner to their growth,” Payoneer CEO John Caplan said in the release.

In 2023, the firm renewed its contract with Airbnb to help hosts get paid in local currencies, formed a new collaboration with Etsy to help that firm expand its Etsy Payments to emerging markets, and announced its plans to acquire a licensed China-based payment service provider to support Payoneer’s China business, per the release.

The growth in the company’s B2B volume was especially strong among outsourcing and services businesses in Asia-Pacific, South Asia, Middle East, Africa and Latin America, according to the release. There, Payoneer’s B2B volume increased 27%.

The company’s merchant services offering is now used by more than 600 businesses that operate eCommerce stores and use its Checkout product to collect payments from around the world, per the release.

Looking ahead, Payoneer expects its B2B volume to rise 25% and its merchant services volume to grow more than 100% in 2024, executives said during the call. So far this year, the B2B volume growth is over 30%.

They expect the growth in merchant services to be driven by continued strong adoption among existing sellers and strong demand from new customers in markets like China and Vietnam.

“We have strong momentum coming into 2024,” Caplan said during the call. “We are making progress at pace to capture our multiyear opportunity and to more reliably and securely connect the world’s 80 million SMBs to the digital, global economy.”

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