Strategy of Payoneer in developing markets: CEO John Caplan discussion on Q2 2024 financial results
Payoneer's Growth in Emerging Markets Propels Q2 2024 Success
Payoneer, a leading fintech company, has reported a significant 16% Year-over-Year (YoY) increase in top-line revenue to $239.5m in Q2 2024, with emerging markets playing a pivotal role in this growth. The company's CEO, John Caplan, discussed the company's strong performance and strategy in these markets during a recent conversation.
The conversation focused on building a healthy Business-to-Business (B2B) take rate for small and medium-sized businesses (SMBs) in emerging markets. Payoneer's strategy for serving SMBs globally centers on offering seamless, low-cost international payment infrastructure paired with multi-currency accounts, flexible currency conversions, and integrated marketplace and checkout solutions. This approach enables SMBs to access global customers and transact efficiently across borders.
SMBs account for about 70% of Payoneer's revenue, with total SMB revenue up 18% year-over-year to $183 million in Q2 2025. The B2B SMB segment grew 37%, and the Checkout product (merchant payment processing) surged 86%, indicating strong adoption of new offerings by SMBs.
Cross-border payment capabilities are another key driver of Payoneer's growth in emerging markets. The company provides secure, simple, and cost-effective global payment solutions that address common fintech pain points such as high fees, slow transfers, and poor currency exchange rates. Multi-currency accounts and global payment integrations help SMBs receive and make payments internationally without friction.
Payoneer's cross-selling strategy has also been effective, with over 53% of active customers using three or more of Payoneer's accounts payable products, up from 40% in 2022. The company's take rate on SMB services increased from 1.11% in Q2 2024 to 1.20% in Q2 2025, driven mainly by higher take rates in B2B and Checkout services.
Payoneer's focus on emerging markets is not limited to the Asia-Pacific region. The company expects stronger B2B volume growth in rest-of-world segments, including emerging markets, leveraging its cross-border commerce platform and network expansion. The company is also making strategic investments in regulatory compliance and technology upgrades to ensure a reliable, scalable platform that supports complex international payments for SMBs globally.
Payoneer is further expanding its offerings by entering the global payroll market with its recent acquisition of Skuad. This move is aimed at building a complete financial stack for cross-border SMBs. The company is also leveraging marketplaces and trade agreements to reduce tariff costs and help SMBs enter new markets, boosting their competitiveness in emerging markets.
In conclusion, Payoneer's strategy for SMBs in emerging markets involves offering integrated, flexible, and cost-efficient solutions that facilitate global digital commerce, supported by ongoing innovation, cross-selling, and regulatory diligence to drive sustainable long-term growth. The company's focus on emerging markets is a key driver of its top-line growth and success in Q2 2024.
[1] Payoneer Q2 2025 Earnings Report [2] Payoneer Strategic Commentary [3] Payoneer Investor Relations Commentary [4] Payoneer Geographic Diversity Analysis [5] Payoneer Enterprise Business Strategy Report
- Payoneer's approach to serving small and medium-sized businesses (SMBs) globally includes offering a blend of seamless technology, such as multi-currency accounts and integrated marketplace and checkout solutions, which allows SMBs to transact efficiently across borders in the realm of finance and technology.
- Leveraging technology and regulatory compliance, Payoneer aims to expand its financial offerings by entering the global payroll market and reducing tariff costs for SMBs in emerging markets, thereby capitalizing on the business potential these markets present in the realm of technology and finance.
