Entrepreneurs who have to switch cash throughout borders face an “existential” drawback, in keeping with the chief of an organization who says he is received the dilemma solved.
Payoneer (PAYO) – Get Free Report CEO John Caplan sat down with TheRoad, in an unique interview on the New York Stock Exchange, to clarify his enterprise (see the video above).
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Host J.D. Durkin requested Caplan about his firm and what it does.
“Payoneer is an extraordinary company,” Caplan mentioned. “What we are is a global business that enables entrepreneurs all over the world, particularly in emerging markets, to have a multi-currency account, a financial account, so they can handle their international accounts receivable and their international accounts payable.”
“And if you’re a business owner in Vietnam, Argentina, Turkey, Brazil, China, and you’re doing business across borders, you need a Payoneer account. There are about 80 million businesses we’ve identified in our target,” he added.
Caplan then defined his view of the speed at which Payoneer is rising.
“Our business is seeing 31% year over year growth,” he instructed TheRoad. “We are on a path to build a really big franchise, over $800 million in revenue we’ll deliver in 2023, nearly $200 million of EBITDA in 2023. This is an exciting company and a really exciting time for the global economy.”
Caplan talked a bit extra about concerning the alternatives his firm sees forward.
“So it’s interesting for us. We’ve had 35% compound annual growth over the last three years,” he mentioned. “Ours is a business — you know, India, big part of Payoneer franchise economy. The GDP is going to grow 7% this year. Latin America, powering the growth of the economy.”
Caplan calls out an ‘existential drawback’
The Payoneer CEO talked additional about how, whereas the banking system is flawed throughout borders, his firm believes it has an answer.
“Our business is strong and getting stronger because we solve sort of an existential problem for an entrepreneur,” Caplan mentioned. “You know, in the United States, you can feed your family, send your kids to college from Chicago, to all the demand you can drive in a day.”
“But if you’re in most of the world, you actually have to do business abroad, across borders,” he continued. “If you do business abroad, the banking system is not set up for you to do that. It’s great for the Fortune 1,000 companies, but the SMEs (small- and medium-sized enterprises) really drive the global economy.”
“They need companies like Payoneer that are delivering a great account that’s mobile,” he mentioned. “With all the AP (accounts payable) tools, the Payoneer card, Payoneer working capital payments within our network, we really are a financial solution for the emerging economy.”
What Caplan thinks is ‘superb’
The Payoneer CEO mentioned the monetary energy of his enterprise and the way rates of interest (whereas holding regular for the reason that time of this interview) have an effect on the stability sheet.
“I think you’re going to find this amazing,” he mentioned. “We have two million customers that hold $5.5 billion of funds in their Payoneer account balances. We will earn over $200 million of net interest revenue on those balances and we pay no yield to our customers.”
“So because they hold a multi-currency account, the rising interest rates are actually powering a lot of the investment we’re making in innovation,” Caplan added. “It’s really positive for the Payoneer platform.
Caplan was president of North America and Europe for digital marketplace firm Alibaba from 2017 to 2021. He offered some thoughts about what he gathered from that experience.
“So I realized so much at Alibaba concerning the international financial system,” Caplan said. “I realized concerning the tempo of innovation. I realized about curiosity and braveness to drive markets that, you understand, rising market economies are cell and so they need nice cell options, options that really feel like shopper functions.”
“In the West, enterprise functions globally are actually simplified to do the core issues individuals want, and that is what Payoneer has finished.”
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