Payoneer, which allows businesses and organizations to pay a large number of recipients efficiently, does so by issuing end-users prepaid MasterCard® cards. The privately held company, whose users include web-based businesses, pharmaceutical clinical trial programs, and study abroad programs, enables faster payments and the avoidance of extraneous fees.
Through the integration of Payoneer with a business or organization, payers transfer funds to a co-branded MasterCard® account that the recipient can then use to access payments. Recipients, who must be 18 or older, mail-order the card, which can be loaded from $20 to $1,000 daily. The recipient can use the funds by swiping the card or using an ATM to access cash. Users also can access their accounts online to keep track of incoming payments and money withdrawals. Businesses have the option of designing their cards to reflect their brands.
The company, whose clients include iStockphoto, Buy.at, and Elance, charges fees according to the partner. Activating the card typically requires a fee, a monthly maintenance charge of up to $3 a month, and a currency conversion fee (set by MasterCard®) if the funds are withdrawn in a currency that is not USD. The account is deactivated after it has a zero balance for 60 days, but will automatically reactivate once a partner deposits funds. The Foreign Exchange rate is determined by MasterCard® at point of sale or during the ATM transaction. To save funds, users are encouraged to pay directly with the card, including using the cash-back option, to avoid ATM fees.
Payoneer's end-users include contractors, online merchants, freelancers, online collaborators, and game developers. Clinical trial participants, students studying abroad, stock photography providers, and web-based advertising companies also are Payoneer clients. MediaWhiz, one of the top online advertising networks, uses Payoneer to pay its more than 25,000 publishers; in 2007, the company paid its customers more than $100 million. In another example, publishing and marketing company Strong Future International, Inc. uses Payoneer to pay members in more than 200 countries.
Founded in 2005, Payoneer attended the 2011 Direct Selling Association of Malaysia (DSAM) Convention where they presented their product to global markets and associations. The focus of the event, based in Subang Jaya, Selangor, Malaysia, was to expose DSAM members to direct selling opportunities and markets outside Malaysia's borders. A member of the World Federation Direct Selling Associations (WFDSA), DSAM's membership consists of more than 3 million distributors.
Payoneer was founded by its president, Yuval Tal who has more than 20 years of experience in online-related technology companies and start-ups. His specialties include security technologies, currency exchange, and prepaid card applications. Born in Israel, he received his Bachelor's degree in mechanical engineering, his Master's degree in biomedical engineering, minor in business administration, from Tel Aviv University. Before founding Payoneer, he co-founded the international payment company E4X, now FiftyOne. One of the original international payment programs in the industry, the company was worth a half billion dollars when he left to found Payoneer.
Payoneer, which is headquartered in New York and has offices in Tel Aviv, is a registered MasterCard® Merchant Service Provider (MSP). Integrated with Choice Bank Limited and First Covenant Bank for service delivery, Payoneer's funding partners include Crossbar Capital. Greylock Partners, and Carmel Ventures.
