Marketplaces cross-border payments firm Payoneer is continuing to look to Asia for growth. The New York based company has recently opened a new office in Korea to serve local ecmmerce merchants and also the country’s freelance entrepreneur who take payments from outside of the country. The company is also expanding operations in Japan, China and the Philippines as the Asian commerce ecosystem continues to burgeon
Founded in 2005, Payoneer facilitates cross-border transactions between an online marketplace and individual merchants. It processes customer payments made on ecommerce sites like Amazon, Lazada and Shoppe and then passes the payments to the seller. Foreign bank accounts are not required.
Launching Payoneer’s office in Korea shouldn’t come as a surprise. Korea is a fast-growing economy and the seventh biggest e-commerce market in the world.
– Eyal Moldovan, Payoneer general manager for direct business
The firms says that it offers a compelling service to Asian merchants who want to bring money paid to them back to Korea. Merchants only pay a service fee of 1.2% or lower when using the service but they point out that clients can avoid various transaction fees generated as money passes through various entities. They also say that they offer speed and quicker access to funds. Merchants can enjoy the in just about two days which they say is superior when compared to the week-long turnaround that is standard when traditional payment processing channels were used.
There are also benefits from other financial products on offer that can help merchants plan ahead and also the general benefit of better interest rates. As all competitors in the foreign exchange sphere say, they can offer better transaction rates than the marketplaces, payment processors and traditional banks and that’s good news for profitabiliy.
The new office will be opening in the Gangnam district and will be headed up by Lee Woo-yong, who is Payoneer’s Country Manager for Korea.