Payoneer moving beyond payments in India, witnesses 3x growth in volumes

Rohit Kulkarni, VP & Regional Head, South Asia, Middle East, and North Africa, Payoneer

Global cross-border business to business (B2B) digital payments provider Payoneer said it has witnessed a 400 percent growth in the number of sellers and over 3x growth in the volumes processed in the financial year 2019 on back of the various initiatives taken by the company. The company expects a similar volume during the current fiscal as it plans to move beyond just payments and enter new business segments.

Rohit Kulkarni, Vice President and Regional Head, South Asia, Middle East, and North Africa at Payoneer told IBS Intelligence that, “Besides, providing online money transfer and digital payment services, we are also looking to provide working capital solutions for its sellers in India soon.”

The US-based fin-tech payment firm, which entered the Indian market in 2016, is in advanced talks with banks and NBFCs to offer two different kinds of working capital products for sellers in India and is likely to launch the service by end of this year.

“We started as a payments gateway but are going beyond payments in India. We have been building relationships with our clients and are trying to understand the pain-points of the sellers. For example, sellers on our platform wanted to have a dollar account in India and we immediately implemented it for them,” Kulkarni said adding that it was also the first cross-border payments platform to have digitized the Foreign Inward Remittance Certificate (FIRC) application process for the Indian sellers, small businesses and also freelancers.

Citing an example of a woman from Udipi in the Indian state of Karnataka, who does coding from a small US-based software firm, Kulkarni said there are similar freelancers from about 8000 pin-codes in the country, who are using Payoneer’s platform for moving payments globally in a seamless way.
The company’s upfront cost is also attracting a lot of small-scale businesses and freelancers with revenues ranging from $100 to $ 1 million per month. “We have no other charges expect a 2% forex fee. We are 50-60 percent cheaper than the other payment providers. Low pricing is important but we are bringing in more value-added services that are attracting the sellers,” Kulkarni said.
The company further added that besides, the overall economic sentiment and increase in exports of Indian goods have also helped boost the revenue growth of the sellers. According to the company, India’s overall exports stood at $300 billion in the first quarter of 2019. Of this, Kulkarni said, e-commerce sales on international platforms contributed to the maximum.
“India was the only market that witnessed growth in e-commerce sales during the quarter,” he said adding that the company expects the growth to come from travel and education in the future.
Founded in 2005 in New York by  Yuval Tal and others, Payoneer facilitates cross-border B2B payments. It provides cross-border transactions in 200 countries and territories, and more than 150 local currencies with its cross-border wire transfers, online payments, and refillable debit card services.

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