APAC has been a key contributor to the firm's overall growth, but Payoneer's regional vice president said there's still «massive opportunity,» given the explosive rise in digital commerce and freelancing in markets like India and the Philippines.
«We're seeing more players come into the space, and online marketplaces for products and services are now more open to expanding beyond their home market to look at Southeast Asia and APAC as a whole for growth,» Payoneer's Nagesh Devata told finews.asia in a conversation on the future of payments and the opportunities the company sees in Southeast Asia.
The online payments firm's Singapore-based regional VP has had a front-row seat to the sector's evolution since he began his career at Mastercard in 1997. Two decades later Devata joined PayPal, where he held several senior roles at its Singapore office, and in 2020 joined Payoneer, where he looks after its enterprise business for the APAC region.
Explosive Growth
Payoneer helps buyers, sellers, freelancers and gig workers connect with marketplaces around the world, allowing for seamless payments based on localized capabilities and multiple currencies. The fintech said it processed more than $44 billion in 2020 – more than double the volume in 2018. It also said it is profitable and expects to collect $432 million in revenue in 2021.
In February, Payoneer announced plans to go public via a $3.3 billion merger with a blank-cheque firm led by Betsy Cohen, and in March expanded its strategic partnership with Mastercard to better cater to the B2B market.
Demand for Services
«The problems surrounding cross-border payments have been around for a long time, and they are more pronounced for SMEs, which have lack of access to financial services,» Devata said. While effective cross-border payments have long been available to larger corporations, SMEs and freelancers lack the same access to instant payments, working capital, sophisticated merchant services and more.
The proliferation of online marketplaces and their ability to connect and service vendors and customers worldwide, along with growth in sectors such as online gaming, e-learning and livestreaming amid the pandemic, is creating a demand for such services.
«People are increasingly using these platforms to monetize whatever they are doing, and this is something that we have seen a significant level of growth and value in terms of how they use Payoneer,» Devata said.
