Payoneer, Inc., a provider of co-branded reloadable prepaid MasterCard cards, announced today that it received an $8 million Series B investment led by Carmel Ventures.
Additional investors in the round include Greylock Partners, Crossbar Capital, Zohar Gilon, and others. Funds will be used to accelerate the expansion of Payoneer's payment service offerings and to enhance its technology with advanced compliance tools that bring a new standard of confidence to international payments.
Payoneer's offerings simplify the process of making international payments by allowing corporations to pay authorized payees worldwide using prepaid MasterCard cards.
As part of the funding, Payoneer also announced that it has appointed Avi Zeevi, general partner and co-founder of Carmel Ventures, to Payoneer's board of directors.
International payments are cumbersome and costly, and as more companies do business with authorized individuals and companies overseas, paying them efficiently is a growing business problem. Since 2005, Payoneer has built an international payments infrastructure that lets companies make recurring mass payments to authorized payees on reloadable prepaid MasterCard cards.
Authorized payees gain immediate access to their money in their local currency - or, if they choose, in US dollars - while avoiding the hassles associated with lost or stolen checks, hold times and fees, and the unavailability of online payment methods in certain countries.
Using Payoneer's services, corporations have lowered their cost-per-payment to authorized overseas payees by up to 75 percent, and have enhanced service provider retention rates due to the payment method. Payoneer has placed tens of thousands of prepaid cards into circulation for hundreds of companies.
"The fast growing global 'internet economy' is creating a new service providers' echo system which drives many more corporations to seek better payment solutions," said Avi Zeevi, general partner and co-founder of Carmel Ventures. "Investing in Payoneer plays to Carmel's strengths and expertise in the Financial Technology space. We are impressed with Payoneer's founding and executive team and we look forward to join them and the existing investors in supporting Payoneer to become a leader in this fast growing market."
"Traditional payment methods are far less desirable to Internet-savvy companies, particularly when they must pay increasing numbers of people outside the US," said Moshe Mor, partner at Greylock Partners. "We see tremendous opportunity for innovation in this space, and are very pleased with the progress that Payoneer has made to date."
"Good, honest individuals still have to jump through hoops in order to get paid when they happen to live outside the US and provide services to US companies," said Yuval Tal, CEO of Payoneer. "We will dedicate much of the additional VC funding to developing technology that will provide better electronic ID systems than required by current Know Your Customer (KYC) regulations in the US -- and to further refine our simple to use, yet highly compliant international payments platform."