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| Scott Galit, CEO of Payoneer CEO / Courtesy of Payoneer |
Cross-border payments firm wants to help Korean firms boost outbound shipments
By Jun Ji-hye
Cross-border payments platforms have come to the fore in today's borderless digital world as more and more companies and individuals are engaged in cross-border trading.
This is particularly so for Korea, which heavily relies on trade with other countries for growth, according to Payoneer CEO Scott Galit, who said Asia's fourth-largest economy is a key market for his company whose mission is to empower global commerce by connecting businesses, professionals, countries and currencies with its innovative cross-border payments system.
In a recent interview with The Korea Times, Galit said Payoneer, headquartered in New York, has experienced an incredibly high growth rate in Korea and other Asian nations over the past six years.
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Tens of thousands of exporters in Korea are already using Payoneer payment services, and their transaction volume has grown twenty-five-fold over the last three years, out of which online e-commerce sellers account for 50 percent in addition to travel, digital marketing and services providers, according to Galit.
In an effort to fully understand the needs of Korean businesses, Payoneer opened an office in Seoul in 2018.
"We will continue to invest in our operations here to ensure we're supporting the local community," he said.
Galit said the Korean government has also appeared to be actively working to promote cross-border trade not just for conglomerates but also for small- and medium-sized firms.
"We are happy we have been able to work closely with Korean government agencies and organizations, including the Korea International Trade Association (KITA) and Korea Trade-Investment Promotion Agency (KOTRA), to promote Korean exports and support the global growth of Korean businesses of all sizes," he said.
"Ultimately, our goal is to establish and support an ecosystem, which empowers all Korean businesses entering the global market, whether they are a single entrepreneur, a startup, or a large enterprise company."
Established in 2005, Payoneer has grown rapidly, announcing triple-digit volume growth in 2018.
Galit said Payoneer from the beginning was focused on how technology was going to transform opportunities for businesses of any size or type, anywhere in the world.
"We started by focusing on digital businesses, and how we could help small business owner know, and access, and connect to this world of opportunities, and actually reap financial benefits," he said. "We also looked at how we can help digital platforms and marketplaces become as global and as inclusive as they can, and maximize the opportunity for buyers and sellers on those platforms."
The firm now enables millions of businesses and professionals from more than 200 countries to grow globally by facilitating seamless, cross-border payments, according to the firm. Additionally, thousands of leading corporations and marketplaces rely on Payoneer's mass payout services to send funds to their beneficiaries worldwide.
"I believe what makes Payoneer truly unique is our scale. We support payments to 200 countries in 150 currencies, making us the preferred payment provider for millions of sellers, freelancers, online marketers and companies who are selling their products and services internationally," Galit said. "Our wide global reach allows you to expand your offering into new geographies, especially in fast growth emerging markets, which until now were too difficult or expensive to reach."
In addition, the firm's tightly-regulated, global payout platform ensures low transaction costs and fast clearance, while providing companies with strong security, robust reconciliation, flexible tracking and transparent reporting, he said.
"As the world becomes more digital, and as commerce becomes more digital, we see new business models and new types of transactions. We're built to support this evolution of commerce," he said.
Commenting on how Payoneer is uniquely different from other digital payment platforms such as Paypal and Apple Pay, CEO Galit said Payoneer offers services for business to business payments. In contrast to that, Apple Pay or Paypal are very much geared towards helping consumers buy from merchants and merchants sell to consumers.
"While consumer payments have been digital and mobile for many years now, business to business payments are mostly still stuck in the analog world of checks and wire transfers," he said. "We see so much need for technological advancement in the market, and an incredible opportunity for growth. We don't just see ourselves as a payment platform. We see ourselves as a partner for businesses and entrepreneurs all over the world who want to grow."
Knowing that security is one of the most important issues in offering cross-border payment services, Payoneer deploys multiple layers of risk technology, both in-house and third party, alongside various procedures to protect businesses and Payoneer against different fraud scenarios, such as registration fraud, account takeover and other activities.
"We have advanced security measures in place that guarantee the integrity and authenticity of all traffic between customers' systems and the Payoneer platform," the CEO said. "In addition, we have developed a robust, risk-based compliance program that addresses the regulatory requirements of each country that is involved in a cross border payment that we make."
Galit stressed commerce is truly changing, creating completely new ways to buy and sell. He said this will be a permanent change, and digital commerce will continue to grow as a percentage of commerce overall.
"Cross-border transactions will continue to increase, and the world will continue to become more inter-connected," he said. "There will be more and more innovations to come and affect permanent change that we are still looking at. We are excited to be a part of it."
He also pointed out that small- and medium-sized enterprises as well as young people are expected to be the central axis of global trade in the future and lead this as they will perceive the world as a market of global opportunity.
"Compared to 20 years ago, there are many more small businesses that are now able to participate in global and digital commerce than there were before," he said. "Young people growing up now are natively digital, they are technically-savvy, they are learning from the beginning how to use technology not just in personal life but in the ways they do business."
Single global currency
There have been various arguments about whether one global currency is necessary. But CEO Galit said a single global currency is unrealistic at least any time in the near future.
"There are many reasons for government regulators and businesses to be cautious, including monetary policy, money laundering and terrorist financing concerns, tax considerations and more," he said.
He added, however, that if the demand for digital currencies is sufficiently high from customers, his firm will work this additional currency into its platform.
"Our goal is to meet all the needs of digital businesses, and if cryptocurrencies one day are part of this, then we will meet that need," he said.
