Payoneer CFO discusses the company’s journey to public markets and Q2 results

Payoneer Global Inc (NASDAQ: PAYO) is a fintech giant best known for its borderless payment solutions and online money transfer services. It offers various assets in the crypto world, such as the possibility to buy Bitcoin and other cryptocurrencies. The company prides itself on its ability to help any small business gain access to the same financial infrastructure that the largest companies in the world enjoy daily, Payoneer CFO Michael Levine told Invezz in an interview.

Democratizing access to financial services

One of Payoneer’s missions is to “democratize access to financial services and drive growth for digital businesses of all sizes from around the world.” While Western-based companies enjoy easy access to banking solutions, the same isn’t necessarily true across the world.

Small businesses outside of the developed world often find it difficult to gain access to financial institutions that can connect them to the world. This is where Payoneer comes in.

Payoneer helps level the global playing field by offering small businesses across the world easy and convenient access to cross-border payment solutions, as well as other financial services.

The ongoing momentum in global e-commerce means it has become “really easy to bring down borders,” Levine said. Small businesses from across the world can now enjoy access to a premier financial infrastructure that wasn't previously available. This selling proposition translated to Payoneer overseeing $44 billion worth of transactions across more than 190 countries in 2020, Levine added:

Payoneer also offers its services to some of the world's largest and most recognizable companies, including Amazon.com, Inc. (NASDAQ: AMZN) and Walmart Inc (NYSE: WMT)

Working with the ‘Queen of SPACS’

Payoneer announced in early February 2021 a deal to merge with the Betsy Cohen-backed special purpose acquisition company (SPAC) FTAC Olympus Acquisition Corp.

Cohen has played a role in nearly a dozen SPAC deals and has rightfully earned the nickname the “Queen of SPACs.”

Partnering with Cohen and her team and pursuing the SPAC route was an easy decision for Payoneer. Cohen has plenty of experience in bringing companies to the public market. He said:

Payoneer has been thinking about its path to become a public company during the COVID-19 pandemic. The health crisis accelerated the ongoing digitalization shift and the company felt it was time to “press on the accelerator,” Levine said.

Q2 results: 'as the world grows, we grow with it'

Payoneer reported second quarter results on Aug. 11, highlighted by a strong revenue beat of $110.9 million versus expectations of $97.87 million. Sales came in well ahead of management’s own internal guidance as the company benefited from continued momentum in the global economic recovery, especially in the digital arena. The CFO said:

Volume in the quarter was up 29% year-over-year to $13.6 billion while revenue as a percentage of volume increased from 75 basis points to 82 basis points.

Payoneer also lifted its 2021 revenue growth target from 25% to 28% to 30% as the company not only sees continued momentum in its core products and from complementary products and services, like Commercial Cards and Merchant Services.

M&A plans

Payoneer made it clear in its post-earnings conference call that it is actively pursuing acquisitions to bolster its business. There is “no shortage” of available targets although management plans on taking a “very methodical” approach given its strong organic growth outlook, Levine said.

Payoneer is looking for either a target company to help in acquiring new and retaining existing customers. Levine added: