Payoneer is a US financial services providing company. Yuval Tal laid the foundation of the company in 2005. Nowadays, Payoneer falls under the category of the world’s largest online transaction companies. The market value of Payoneer reached 1 billion US dollars in 2019. The headquarter of the company is in New York.
Digital payments, working capital, online fund transfers, Mastercard, debit card, e-wallet, and international money transfer are some of the main services of Payoneer. The company is providing its financial services in more than 200 countries across the world. Its platform also supports roundabout 150 local currencies of different countries.
According to an estimate, there were approximately more than 1395 people working for the company in 2019. The total annual revenue of Payoneer in 2019 was 300 million US dollars. The platform has got over four million customers across the world. The company has got 14 sub-branch offices in different countries worldwide.
Remitly, Paypal, Skrill, Square, Skrill, Google Pay, Apple Pay, Samsung Pay, and Tipalti are some of the main competitors of Payoneer. Optile and Armor Payments are the subsidiaries of the company.
Today, we’ll discuss the swot analysis of Payoneer that how a financial service providing company operates and its other internal factors.
Here’s the swot analysis of Payoneer;
Strengths of Payoneer
Following are the major strengths of Payoneer.
Payoneer is a global multinational brand and the company is operating its business in more than 200 countries around the world. It comprises of all the big and developed countries of the world. That’s why Payoneer falls under the category of the world’s leading financial service providing companies in the market.
One of the main reasons behind the success of Payoneer is that it hasn’t only relied on the developed economies. The company went global and started offering its services in the developing countries established its market there.
On the other hand, Paypal is the main competitor of Payoneer. Paypal is offering its financial and fund transfer services in some countries and it isn’t available in other countries. When it comes to worldwide locations, Payoneer is the top choice for many users.
Global Customer Database
According to an estimate, the financial service providing company has got approximately more than 4 million active users across the world. It’s a significant figure of users for a financial company. It’s because of the quality service; the company has been to accumulate all of these users.
To provide a better customer experience, Payoneer has hired approximately more than 300 employees for the customer service department. They provide assistance to the users in more than 70 different languages to all the worldwide customers. When we talk about a customer service financial platform, Payoneer cares deeply about providing a quality service to its customers.
Diverse Services Portfolio
The service portfolio of Payoneer comprises a diverse range of financial services. The company allows people to send and receive funds and transfer their money from the Payoneer account to their local bank account and vice versa.
Payoneer works in collaboration with MasterCard to offer the customers Payoneer debit card. It allows people to make transactions across the world. The company also provides the service of an e-wallet where people can keep their money. All of these financial services play a very important role in attracting new customers.
The computer interface of Payoneer is user-friendly, simple, and easy to use. The users can sign-up for the platform from anywhere. If they provide the exact information required about their authenticity and validity, they can make their account easily. The platform has the right to ask for the basic information about the users before allowing them into it. The control panel section of Payoneer is also very simple and easy to use.
Affiliation with Leading Platforms
Payoneer has affiliation and association with other world’s leading platforms. The digital platforms like Airbnb, Wish.com, Rakuten, and Amazon. It also allows users to integrate their Payoneer account with the major freelancing platforms like Fiverr, Freelancer, Upwork, People Per Hour, and many other platforms. Such integrations and affiliation would help the company to increase its customer base.
Weaknesses of Payoneer
Below are the weaknesses of Payoneer.
Strict Approval Policies
Many new users have claimed that the approval policy of Payoneer at the sign-up stage is very difficult. The company says that it’s the standard protocol by following all the precautionary measures.
When we talk about the strict policies, Payoneer also has the control to require extra from the users, to freeze their account, and stop sending or receiving payments. All of these policies and controls over users’ accounts are negatively impacting the company.
Relying on the Internet
The whole system of fund transferring and international transactions through Payoneer depends on internet connectivity. The company can’t even perform a single transaction without the internet. Even though access to the internet is available in most countries, but it isn’t available in some places. Since the company is expanding in developing countries, it would be a potential problem for the company.
Payoneer is integrated with major freelancing platforms and other online retail stores. But when it comes to acceptability and performing various types of transactions, Payoneer is far behind Paypal. It’s because Payoneer only allows users to make payments either to the bank accounts or to the other users.
On the other hand, Paypal provides more flexibility to its users and non-users. That’s why different online payment systems accept Paypal, but it isn’t true for Payoneer.
Opportunities For Payoneer
Following are the worth-mentioning opportunities for panyoneer in the external environment.
One of the top opportunities Payoneer has is to go public for raising funds. The company has the resources and healthy financial performance to prove its credibility. When the brand would go public, it would help the company to find new investors and attract more funds. Payoneer would be able to launch new features and expand its customer market with additional funds.
Digital Economy & Pandemic
The pandemic of covid-19 has made the world realize the importance of the digital economy, where corporations and companies would transfer funds online. The whole scenario presents a great opportunity for Payoneer to expand its platform. Since Payoneer is already in the business, the company should enter into new markets to increase its market share.
The usage of the internet is increasing day by day and it has made the world a global village. The trend of online shopping and e-commerce is also increasing. All of these things also require a financial service provider to perform different types of transactions. It’s a great opportunity for Payoneer to take advantage of the opportunity.
There’re many new startup companies and e-commerce platforms that need an online financial service provider to perform daily transactions. Payoneer has the option to become their first choice by adding new features for small businesses.
Threats to Payoneer
Following are the greatest threats to Payoneer.
Easy Entry due to Internet
As we know that Payoneer is an online financial service platform. It means that any new startup company with sufficient knowledge of accounting and banking can enter the market. Although there are some barriers and complexities involved, but not enough to stop any new competitor.
There are some local service providers in the market. They may attract the attention of customers and capture the market share of Payoneer. The customer would also prefer a local provider rather than an international service provider.
Hacking & Fraud
The financial fraud and account hacking activities have also increased in recent years. If any incident happens, it would jeopardize the credibility of the company.
After a careful study of the swot analysis of Payoneer, we have realized that Payoneer is indeed the world’s leading financial service providing company. The brand should take advantage of the upcoming trend of e-commerce and the digital economy to minimize the threats.