Exploring Payoneer's Special Purpose Acquisition Corporation agreement
Payoneer, a cross-border ecommerce company, has announced its intention to go public through a merger with FTAC Olympus Acquisition Corp. The merger, led by serial SPAC investor Betsy Cohen, is expected to provide Payoneer with access to capital markets and potential acquisitions.
The merger comes as a significant milestone in Payoneer's growth strategy. The company has been focusing on larger customers, shifting away from smaller ones, a strategy that continues to be in effect. This shift has led to a reduction in take rates, but the company has managed to maintain its profitability through increased significance in bank payments.
Bank payments have become a crucial part of Payoneer's operations, providing higher profit margins despite lower take rates. This trend remains in place, contributing to the company's financial stability.
Payoneer aims to blend aspects of PayPal, Adyen, Shopify, and other ecommerce players in its operations. The company has built local market teams and started relationship selling to bring on bigger customers.
Scott Galit, CEO of Payoneer, confirmed the rumors of going public with serial SPAC investor Betsy Cohen via her latest SPAC - FTAC Olympus Acquisition Corp. Naftali Bennett, who served as President, Chief Executive, and Director of FTAC Olympus Acquisition Corp. before the merger, led the acquisition.
The initial valuation of Payoneer is in line with leading payment processors like FIS, Fiserv, and Global Payments. The public markets currency of Payoneer may facilitate further M&A activity, as previously anticipated.
Payoneer anticipates further M&A activity following its public markets currency, with potential acquisitions supplementing organic growth and adding new products to its portfolio. The acquisition of Optile in 2019 demonstrates Payoneer's strategic approach to growth through acquisitions.
For those interested in updates on industry developments related to Payoneer, a newsletter sign-up invitation is available. Daniel Webber, who is associated with the news, has a LinkedIn profile suggesting a professional background.
The card offering of Payoneer has become smaller but is beginning to grow again. This development, along with the upcoming public markets currency, promises an exciting future for the company.
