Payoneer sees growth in cross-border payments

There is a supportive environment for the use of online payments and this gives an additional advantage to these sellers and SMEs to transact money.

By Author  |  Published: 18th Mar 2018  11:58 pmUpdated: 19th Mar 2018  12:43 am
Payoneer India
Payoneer is helping enterprises, exporters, freelancers to explore overseas markets and grow their businesses.

Hyderabad: Internet penetration across the world and in India is enabling cross-border B2B payments in the recent years. Borders are getting shrunk and geography is no more a barrier.

With sellers and small medium enterprises (SMEs) from tier-2 and tier-3 getting enough access to internet, there is an emerging opportunity for them to expand their businesses globally.

With India pushing for digitisation, there is a supportive environment for the use of online payments and this gives an additional advantage to these sellers and SMEs to transact money. New York-based Payoneer that operates through its Indian entity is providing a payments platform which supports these transactions.

Rohit Kulkarni, country head, Payoneer India, told Telangana Today, “We enable transactions in 200 currencies in 150 countries. We primarily operate in the B2B space. We are regulated in the US, EU, China and Japan. We are awaiting certain approvals from Reserve Bank of India to work in the import business and we had been operating in the exports business for the last two years. We have partnerships in India and provide account management services to our clients here.”

Diversified users
In the last two years, the company had been serving payment platforms and individual businesses including goods suppliers, freelancers, service providers (BPOs and KPOs) and small technology companies who cater to global markets, managing all that deals with their payments.

The company makes transactions faster and less expensive for a transaction to happen between businesses. Payoneer provides access to logistics, time-tracking and services providers. The company also works with 50 banks globally.

India has about 1.5 crore freelancers in different sectors. There are several market places for these freelancer using Payoneer’s platform and expand their business globally.

The company has also conducted several forums for the sellers on how digital platforms can improve their business as well as help them in aspects such as GST compliance. Though multiple nations have different payment policies and norms and tax regulations, he said, the company’s platform makes it easy for a user simplifying the process which otherwise would have become complex.

Kulkarni says, with the help of machine learning and data analytics, compliance has become easy. “We have taken our time to understand the global regulations including India. We have made a significant effort into technology. We are not just a payment provider. Payoneer provides a larger platform for businesses enabling them in exports and imports and bring in value addition. Our ties with Amazon and Airbnb help enterprises. We also provide VAT enabled platform for end-users,” he added.

India market
“We have grown 200 per cent in value from 2016 to 2017 in India. The number of customers has grown by 160-170 per cent year-on-year. We don’t charge transaction fee on a user but we charge a foreign exchange conversion fee. Our charges are between 0.8-2 per cent which is far lesser than competitor platforms,” he added.

Payoneer sees a significant growth in tier-2 and tier-3 towns across India and serves 2,300 pin codes. Delhi, Mumbai, Hyderabad and Jaipur are the top four markets for the company.

Hyderabad has 6,000 users on Payoneer (of 40 lakh active users globally) with volume of business growing 117 per cent. Categories such as gems & jewellery, apparel and accessories saw healthy growth in Hyderabad and Telangana. There are also several technology freelancers from Hyderabad.

The company is building its business and investments will go into enabling enterprises to go global. The company globally clocked revenues of $100 million with a growth rate of over 40 per cent.