Comment by Jody Perla (MD of Global Banking and Payment Infrastructure at Payoneer)
B2B vs B2C
At Payoneer, we focus on B2B payments. However, the lines between businesses and individuals are blurring. The gig economy is growing at incredible rates – a study by Upwork.com found that by 2027, over half of the US workforce will be freelancers. So what we’re seeing is that more individuals are becoming their own micro businesses, and with that comes a number of complexities in regards to payments and scaling an online business including– how to receive payments securely and quickly from anywhere in the world, how to access capital, pay taxes, avoid fraud and more.
Modern banking infrastructure hasn’t evolved quickly enough to help small businesses address those challenges. That’s where fintechs like Payoneer come in. We work with businesses of all sizes, ranging from the multinational enterprise (like Amazon, Airbnb, Google) through to the freelancer in Ukraine, or the eCommerce seller in Vietnam, and make it as easy to send and receive payments globally as it is locally, as well as providing a host of other services to help them participate in the global economy.
Modern banking infrastructure hasn’t evolved quickly enough to help small businesses address those challenges.
Key trends driving the cross-border market
As the world becomes more digital and connected, barriers to entry for the global economy come down. At the same time, dealing with the complexity of local regulations across a global market, layered on top of legacy payment systems, has created a massive challenge to modern businesses.
Digital businesses need to have local expertise in every market in which they operate to ensure regulatory compliance, however many prefer to have a centralised treasury and financial hub to manage their payments and operations. This is where fintech companies like Payoneer can add value. We have the local infrastructure, knowledge and regulatory framework locally in each market, but provide a centralised platform, allowing the business to focus on their core competencies while outsourcing the payment infrastructure to us.
Digital businesses need to have local expertise in every market in which they operate to ensure regulatory compliance
Another important trend is shifting expectations. As consumers, we’ve become accustomed to accessing information in real time, and seeing an instant movement of money at little to no cost. These expectations are carried over to cross border commerce as well. Just like you can connect with someone locally in your own neighbourhood, people expect that same experience no matter who they are dealing with internationally.
These trends create an imminent need for innovation in cross-border payments.