Payoneer
Encyclopedia
Payoneer is an Internet
-based financial services business that allows users to transfer money and receive payments through re-loadable prepaid MasterCard
debit card
s. The company focuses on specific payment solutions, primarily affiliate, mass payments, Local Electronic Funds Transfer
(EFT), merchant account
s, and payout programs in countries with underdeveloped banking systems.
Payoneer is a registered Member Service Provider (MSP) of MasterCard
worldwide. The Company is headquartered in New York City
with R&D offices in Tel Aviv
, Israel. Payoneer has received venture funding from Greylock Partners, Carmel Ventures
, and Crossbar Capital.
s issue prepaid Visa Inc. or MasterCard debit cards either directly or through Member Service Providers (MSPs). In order to compete, many of these organizations target specific markets, where they can differentiate their products. Payoneer pursues a number of markets by providing salary and commission payout solutions for industries like affiliate marketing
, summer camps, freelancers, direct selling
and clinical trial
s.
Techcrunch
described Payoneer as a competitor to Paypal
, having an "advantage over Paypal in the micro-payments arena" because "it makes international payments easier by not requiring a bank account for verification." According to The New York Observer, a large share of the traffic to Payoneer's web site comes from Russia and Central Asian countries like Kyrgyzstan, Uzbekistan and Kazakhstan. Payoneer has a partnership with the freelance-marketplace firm Guru.com
; 85% of Guru.com pay card holders are from outside USA.
The New York Observer reports that Payoneer uses Belize’s Choice Bank Limited and the Iowa's MetaBank
for some of its services, after it has used the First Bank of Delaware in the past.
, Hamas
militant, in 2010. Payoneer’s management and funding connections to former Israeli
army and special forces soldiers fueled conjecture around potential conspiracy. The incident resulted in Payoneer and others in the prepaid card industry to review and improve security around the movement of funds through their systems.
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
-based financial services business that allows users to transfer money and receive payments through re-loadable prepaid MasterCard
MasterCard
Mastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
debit card
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...
s. The company focuses on specific payment solutions, primarily affiliate, mass payments, Local Electronic Funds Transfer
Electronic funds transfer
Electronic funds transfer is the electronic exchange or transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems....
(EFT), merchant account
Merchant account
A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for the settlement of credit card and/or debit card transactions...
s, and payout programs in countries with underdeveloped banking systems.
Payoneer is a registered Member Service Provider (MSP) of MasterCard
MasterCard
Mastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
worldwide. The Company is headquartered in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
with R&D offices in Tel Aviv
Tel Aviv
Tel Aviv , officially Tel Aviv-Yafo , is the second most populous city in Israel, with a population of 404,400 on a land area of . The city is located on the Israeli Mediterranean coastline in west-central Israel. It is the largest and most populous city in the metropolitan area of Gush Dan, with...
, Israel. Payoneer has received venture funding from Greylock Partners, Carmel Ventures
Carmel Ventures
Carmel Ventures, established in 2000, is an Israeli venture capital fund with over $600 million under management. Carmel is focused on early stage companies in the fields of Software, Internet, Media, Communications, Semiconductors, and Consumer Electronics....
, and Crossbar Capital.
Business model
Many card Issuing BankIssuing bank
An issuing bank is a bank that offers card association branded payment cards directly to consumers.-Detail:The issuing bank assumes primary liability for the consumer's capacity to pay off debts they incur with their card....
s issue prepaid Visa Inc. or MasterCard debit cards either directly or through Member Service Providers (MSPs). In order to compete, many of these organizations target specific markets, where they can differentiate their products. Payoneer pursues a number of markets by providing salary and commission payout solutions for industries like affiliate marketing
Affiliate marketing
Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts...
, summer camps, freelancers, direct selling
Direct selling
Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Peddling is the oldest form of direct selling. Modern direct selling includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as...
and clinical trial
Clinical trial
Clinical trials are a set of procedures in medical research and drug development that are conducted to allow safety and efficacy data to be collected for health interventions...
s.
Techcrunch
TechCrunch
TechCrunch is a web publication that offers technology news and analysis, as well as profiling of startup companies, products, and websites. It was founded by Michael Arrington in 2005, and was first published on June 11, 2005....
described Payoneer as a competitor to Paypal
PayPal
PayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders....
, having an "advantage over Paypal in the micro-payments arena" because "it makes international payments easier by not requiring a bank account for verification." According to The New York Observer, a large share of the traffic to Payoneer's web site comes from Russia and Central Asian countries like Kyrgyzstan, Uzbekistan and Kazakhstan. Payoneer has a partnership with the freelance-marketplace firm Guru.com
Guru.com
Guru.com is a freelance marketplace. It allows companies to find freelance workers for commissioned work. Founded in 1998 in Pittsburgh as eMoonlighter.com and still headquartered there, it is one of the tech firms to survive the dot-com bubble of the late 1990s...
; 85% of Guru.com pay card holders are from outside USA.
The New York Observer reports that Payoneer uses Belize’s Choice Bank Limited and the Iowa's MetaBank
MetaBank
MetaBank is a savings bank headquartered in Storm Lake, Iowa. Meta Financial Group, Inc. , is the holding company for MetaBank, Meta Payment Systems, and Meta Trust Company®...
for some of its services, after it has used the First Bank of Delaware in the past.
Questions in al-Mabhouh assassination
Dubai police reported that Payoneer cards were used in financial operations behind the assassination of Mahmoud al-MabhouhAssassination of Mahmoud al-Mabhouh
The assassination of Mahmoud al-Mabhouh, took place on January 19, 2010, in a Dubai hotel room. Al-Mabhouh—a co-founder of the Izz ad-Din al-Qassam Brigades, the military wing of the Islamist Palestinian militant group Hamas—was wanted by the Israeli government for the kidnapping and murder of two...
, Hamas
Hamas
Hamas is the Palestinian Sunni Islamic or Islamist political party that governs the Gaza Strip. Hamas also has a military wing, the Izz ad-Din al-Qassam Brigades...
militant, in 2010. Payoneer’s management and funding connections to former Israeli
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
army and special forces soldiers fueled conjecture around potential conspiracy. The incident resulted in Payoneer and others in the prepaid card industry to review and improve security around the movement of funds through their systems.