Yuval Tal on Cross-Border Payments and Payoneer

Cross-border payments is a hot industry. It is also highly competitive and encumbered with serious regulatory requirements. Succeeding in this space requires sound operating tactics, the ability to adapt to changing markets and a deep understanding of myriad regulations. Payoneer, a company funded and managed by Yuval Tal, has been developing prepaid debit card solutions for niche cross-border payments markets for over six years. According to Tal, “Providing international payments, especially under $10K, in a cost effective manner is very tricky and complicated.” While companies like PayPal and Moneybookers have meaningful cross-border capabilities, Payoneer has demonstrated technologies that make it easy for a much broader group of users to receive international payments. Mygiftcardsite balance

During its six year operating history, the company has morphed in many ways to meet changing market demands. Payoneer implemented a solid differentiation strategy by using prepaid debit cards to facilitate the movement of funds across national borders. Further differentiation was accomplished by targeting niche industries struggling with these types of payments. And although there is competition, Tal suggests that, “the real challenges are not competitive, but are things like combating fraud and mitigating other risks.”

Prepaid debit cards are everywhere. A survey published by the Federal Reserve Bank of Boston in 2009 reported that approximately thirty three percent of all consumers possessed some type of prepaid debit card. Prepaid debit cards include a diverse group of payment instruments ranging from gift cards to phone cards to electronic benefits transfer (EBT) card, etc. A very large number of these ubiquitous instruments are those issued through the major credit card brands: Visa®, MasterCard®, American Express® and Discover®. Use of these branded cards has been growing quickly, and because of recent legislation, they are poised to grow further and at a greater rate.

According to the Mercator Advisory Group, consumers loaded over $60 billion dollars onto branded prepaid debit cards in 2008, almost a 50% increase over the past year. These cards, although carrying the aforementioned brands, are actually issued by hundreds of banks and their independent third party partners. Payoneer is one of these third party companies.