Payoneer is a US-based financial services company that offers online money transfer, digital payment services, and working capital services. The company, established in 2005, is currently one of the biggest names in the market, with millions of users worldwide. Payoneer started its operations with $2 million in seed funding from founder Yuval Tal.
Throughout the years, the company has successfully increased its user base and accumulated over 4 million users. Payoneer provides its services in over 150 countries. These include the USA, the UK, Australia, Germany, Japan, India, China, and some others. Over its many years of exemplary services, the company has also won several awards and accolades.
Payoneer went public on the NASDAQ stock exchange in June 2021. Before that, the company got most of its funding through existing investors or private fundings. Similarly, Payoneer’s current base of operations is in New York City. However, it has 14 offices around the world. The company’s services are one of the top choices among many online users.
Payoneer partners with various companies to provide its users with uninterrupted services. These include big names such as Amazon, Google, Airbnb, and Upwork. It is also one of the most preferred financial services platforms among freelancers and affiliate marketers. Payoneer provides these users with the ability to send and receive payments anywhere in the world.
Payoneer specializes in cross-border B2B payments. The company provides cross-border transactions in over 200 countries and territories. Similarly, its services include an e-wallet, virtual bank account number, reloadable prepaid debit card, online payments, and much more. Due to these services, the company also attracts substantial competition, both local and international.
Payoneer primarily operates in the online financial services market. Due to its business model, the company also has many competitors. Most users see these competitors as alternatives to the company’s services. Some of the top Payoneer’s competitors and alternatives are as below.
1. PayPal
PayPal, undoubtedly, is the most prominent name in the online financial services market. The company was formed in 2000 after a merger between x.com and Confinity. The company started its operations in the online market. However, it became successful after it became a subsidiary of the well-known online marketplace, eBay.
PayPal has the largest customer base in the online financial services market, with over 392 million active users. The company also holds the highest market share among the existing competition in the market. PayPal provides similar services to Payoneer, making it one of the most influential competitors in the market. In terms of competition, however, PayPal is by far the best platform for online payments.
2. Skrill
Skrill is a digital wallet provider based in the UK. The company started its operations in 2001 and expanded its operations in over 120 countries. Skrill primarily specializes in cross-border payments through its remittance service. It is one of the most preferred options among e-commerce users and online gaming platforms.
Skrill has won several accolades for its services throughout the years. The company employs over 2000 employees throughout various locations. Skrill reported it had over 40 million active users worldwide in over 200 countries and territories. Apart from primary services, Skrill also offers cryptocurrency trading, which Payoneer does not.
3. Stripe
The Wired UK called Stripe a secretive $20 billion startup, and rightfully so. Stripe started its operations in 2009 at a time when some other competitors were dominating the market. However, it still managed to capture a fair market share over its years of operations. Stripe offers payment processing software and application programming interfaces for e-commerce websites and mobile applications.
Stripe’s services differ from some other names on the list. Primarily, it facilitates payments to businesses. However, it is also a payment processing platform, making it a competitor to Payoneer’s services. Although it is a private company, the company has received billions in investments over its lifetime. In 2020, Stripe generated $7.4 billion in revenues.
4. Square
Square is a US-based financial service and digital payments company. It primarily operates in the financial services, mobile payment, and point of sale industry. The company specializes in point-of-sale terminals and auxiliary equipment. On top of that, it also provides payment cards. The company started its operations in 2009 and gained popularity through its Square Reader product.
Today, Square holds a relatively large market share in the financial services industry. The company generated $9.49 billion in revenues in 2020. Over the years, the company has accumulated millions of users, 30 million of which are active. Similarly, it has expanded its operations significantly, making it a competitor and alternative to Payoneer.
5. Wise (formerly known as TransferWise)
Wise is an online money transfer company that is UK-based. The company competes with Payoneer and several other companies on this list for online transfers. Wise started its operations in 2011 as TransferWise. The company’s unique transfer process made it one of the most inexpensive options available in the market. It also helped the company accumulate millions of worldwide users.
Wise is currently a public company, listed on the London Stock Exchange, valued at over $11 billion. The company facilitates billions in online transfers every month, making it one of the biggest names in the market. However, Wise does not compete with Payoneer and other names in every market. When it comes to the transfers market, Wise has more dominance.
6. Google Pay
Google started its operations as an online search engine provider. However, the company has expanded its operations significantly over the years. The company now also operations in the online financial services sector through its Google Pay services. Google Pay started operations in 2015 and provides users with an online digital wallet powered by Google.
Google Pay is one of the primary payment processors on Android devices. Due to its integrity with the operating system, users find it easier to use. However, Google Pay does not compete with Payoneer and other names in other markets. Its primary competition is in the mobile payments sector, where it poses a substantial threat.
7. Amazon Pay
Amazon is another big company that started its operations in the ’90s. The company started as an online bookstore and eventually expanded to be an online retail store. It is one of the most prominent e-commerce platforms in the world. Like Google, Amazon also has a payment processing service known as Amazon Pay.
Amazon Pay integrates within the Amazon ecosystem to provide users with seamless payment services. It is one of the primary advantages that it has over other services. Despite that, Amazon Pay does not pose a significant threat to Payoneer’s operations in most of its markets. Amazon Pay’s primary advantage is within the Amazon ecosystem, where it beats Payoneer.
8. Alipay
Payoneer is very prominent in the Chinese market. However, it faces competition from Alipay, a financial services company owned by Ant Financial. The company holds the market share in China, with over 55% market share in the third-party payment market. Alipay is also a part of Alibaba’s ecosystem, which is China’s largest online retail store.
Despite its dominance in the Chinese market, Alipay does not pose a significant threat in any other markets. It makes it less of a competition to Payoneer and other names on this list. Overall, the company partners with over 300 worldwide merchants who sell to the Chinese market.
9. Paytm
A market with a huge potential for online payments in India. The country is among one of the fastest markets for e-commerce users, freelancers, and online markets. Although Payoneer provides its services to the market, it falls short of local competition, Paytm. Paytm is one of the largest online financial services providers in India.
Paytm holds a significant dominance over the Indian online financial services market, with over 20 million merchants using the platform. One of its shareholders includes the Ant Group, with over 29% holding, the parent company of Alipay. Paytm also operates in other markets. However, it does not pose a significant threat there.
10. Tipalti
Tipalti is an international money transfer and accounts payable automation platform. The company began its operations in 2010. Currently headquartered in CA, USA, the company offers services in other locations, including Canada, UK, and Israel. Over the years, Tipalti has raised millions in fundings from various sources.
Tipalti specializes in modernizing financial operations while providing an effective payment gateway to businesses. The company offers payment services to accounts payable automation and digital marketplaces. Although not a significant competition, Tipalti offers a decent alternative to Payoneer.
Conclusion
Payoneer is a well-known online financial services company. The company provides online transfers, debit cards, e-wallet, and other similar services. Similarly, Payoneer has many competitors due to the nature of its operations. These include some names such as PayPal, Skrill, Square, Google Pay, Amazon Pay, Stripe, and Wise, among others.