Payoneer, a cross-border payment provider, is exceeding its 40% predicted growth rate with nearly 100,000 applications coming in every month.
The applications come from potential clients from 200 different countries, says Scott Galit, CEO of Payoneer, which is based in New York. The company offers a receivables platform for merchants, through which it provides access to foreign bank accounts to speed up payments in foreign currencies in areas where the payments infrastructure isn't as advanced.
"Once we start helping payments flow in new and better ways, we see rapid growth in those countries," Galit says.
For example, Payoneer provided Design Guru Communications, an ad agency based in Islamabad, Pakistan with a U.S. bank account so payments sent in U.S. dollars started to arrive much quicker and the costs of currency conversion were curbed. Design Guru, founded in 2010, is registered on Elance, an online staffing platform connecting businesses with freelancers.
"I used to withdraw my funds from Elance via bank wire, but it used to take three to four weeks per transaction, which was very annoying and in case of a delay in funds transfer it was really hard to locate the transaction," says Arif Malik, founder and CEO of Design Guru.
About three years ago, Malik began using Payoneer. Elance pays frelances into their Payoneer accounts, and Payoneer allows Design Guru to view its full transaction history.
"The best part is I can withdraw funds directly into my local bank account from my Payoneer card," Malik says. "Even if I'm traveling I can use the Payoneer card at any ATM worldwide."
Payoneer charges a 1% fee when a customer sends money into a merchant's Payoneer bank account. Withdrawing money from the Payoneer bank account into a local bank account is free and ATM withdrawals using the Payoneer MasterCard debit card cost $3.
A client can send funds from a Payoneer account to a local bank account with a wire transfer, but the minimum transfer limit is $500. "If I transfer my funds first to Payoneer and then use Payoneer Bank Transfer service, that is faster than Elance bank wire service and conversion charges are less than Elance," Malik says.
In March, Payoneer completed a $25 million Series D financing round led by Susquehanna Growth Equity. Also in March, the company began handling Google's "insurance" payments to consumers as part of the Google Trusted Stores program.