In the space of global trade, India stands at a pivotal juncture, aspiring to emerge as a powerhouse on the international stage. The government's ambitious target of achieving $2 trillion in export revenue by 2030 underscores the nation's commitment to elevating its position in the global market. Among the key players driving this growth are the country's Micro, Small, and Medium Enterprises (MSMEs), which form the backbone of the economy. However, these businesses often face significant hurdles when it comes to cross-border payments, hindering their ability to expand and thrive in the global marketplace.
To shed light on these challenges and explore innovative solutions, Businessworld engaged in an insightful dialogue with Gaurav Shisodia, Vice President of Payoneer India. As a leading cross-border payment platform, Payoneer has been at the forefront of revolutionising the way businesses transact globally. Through this exclusive interview, Shisodia delves into the current state of the cross-border payments industry, the unique advantages offered by Payoneer, and the transformative potential it holds for Indian SMBs seeking to make their mark on the global stage.
Can you provide an overview of the current landscape of the cross-border payments industry, including its size, emerging trends, and the primary challenges faced by businesses?
The advent of the digital age has reshaped the contours of global trade, eroding traditional barriers and opening up a world of opportunities for businesses of all sizes. The global cross-border business payments market presents a staggering $6 trillion prospects, with the potential to connect over 80 million underserved SMBs to the thriving global economy. This growth is propelled by factors such as the increasing accessibility of global marketplaces, the emergence of remote workforces, shifting customer preferences, and the demand for seamless, real-time international transactions.
However, navigating the complexities of cross-border payments remains a significant challenge for businesses. Regulatory intricacies, hidden fees, lack of transparency, and prolonged settlement times can hinder cash flow and impede international expansion. These obstacles have traditionally limited the ability of businesses, particularly SMBs, to fully capitalise on global opportunities. The digital transformation has heightened the need for swift, secure, and efficient cross-border payment solutions to address these pain points and empower businesses to thrive in the international arena.
How does Payoneer differentiate itself from traditional banks in facilitating cross-border payments for businesses?
While traditional banks have long been the go-to choice for businesses conducting global B2B transactions, they often present a myriad of complexities. Setting up overseas bank accounts, especially in jurisdictions that mandate a local operating entity, can be a daunting task. SMBs, in particular, grapple with high rejection rates, prolonged timelines, lack of transparency due to the involvement of multiple banks, and costly, time-consuming transfers for smaller transaction volumes.
Payoneer, on the other hand, simplifies the process by enabling businesses to effortlessly accept payments through local receiving accounts. Our transparent fee structure and intuitive dashboard provide businesses with the convenience of tracking and monitoring all transactions in real-time. With a strong localised presence, on-ground teams in various countries, and customer support in over 42 languages, we ensure swift query resolution and an enhanced customer experience. Payoneer is regulated in key markets and has cultivated an ecosystem of nearly 100 banking partners, payment service providers, and global marketplace partnerships to effectively support our customers' needs.
Who is Payoneer's target audience, and which key markets does the company focus on? Can you share some insights into Payoneer's global growth strategy and relevant statistics?
Since its inception, Payoneer has been dedicated to providing secure, fast, and convenient international payment solutions to a diverse clientele. Our target audience encompasses service export companies in various domains, including tech & programming, SaaS, digital marketing agencies, sales, e-commerce exporters, marketplace sellers, and freelancers. As of December 31, 2023, Payoneer has established itself as a trusted platform for SMBs worldwide, boasting 516k active ideal customer profile (ICP) customers and managing $6.4 billion in customer funds.
Our growth strategy revolves around adopting a localised and customer-centric approach, focusing on customer acquisition and retention across our key regional markets: APAC, Europe, China, LATAM, and North America. We facilitate the growth of businesses through global flagship events like Payoneer Elevate and Payoneer Connect, which foster valuable connections and equip our customers with growth insights.
What role does India play in Payoneer's market strategy, and how does Payoneer support Indian businesses?
India holds a pivotal position in Payoneer's market strategy, serving as a priority country with a focus on outsourcing and service export businesses. The Indian service export market is witnessing substantial growth, and Payoneer is well-positioned to leverage this expansion and strategically cater to the increasing demand from businesses in sectors such as tech and programming, SaaS, digital marketing, sales, e-commerce exports, and marketplace sellers.
Since 2016, customer growth in service exports on Payoneer India has surged by 54 per cent, with volume and revenue achieving impressive CAGRs of 85 per cent and 88 per cent respectively (as of December 31, 2023). Our platform facilitates cross-border payments across thriving global markets, including the United States, United Kingdom, Canada, Australia, Germany, and Singapore.
Can you tell us about Payoneer Elevate and its significance for businesses, particularly in India?
Payoneer Elevate 2024 marked the 8th edition of our global flagship event, spanning 40+ cities across 17 countries and welcoming more than 14,000 attendees worldwide. The event brings together influential thought leaders who share invaluable insights for Indian SMBs aspiring to expand globally, identify global service export trends, and explore new frontiers of growth and innovation in India's service sector exports.
With its immersive masterclasses, workstreams, and knowledge-sharing sessions, Payoneer Elevate highlights emerging trends for entrepreneurs, decision-makers, and growth leaders, offering access to industry insights, growth strategies, and ecosystem trends while fostering connections within the service export community.
What specific benefits does Payoneer Elevate offer to businesses based in Delhi?
Delhi holds a significant place for Payoneer, as it is home to the largest number of service export businesses on our platform in India. From 2016 to December 31, 2023, the CAGR for the number of customers in service exports has risen by 50 per cent in New Delhi, with businesses achieving remarkable CAGRs of 98 per cent and 100 per cent for volume and revenue, respectively.
The top-performing domains on our platform are Delhi-based service export companies specialising in consulting and management, programming and technical support, marketing and design, and multimedia, with the US, UK, Australia, Canada, Singapore, and Germany being their largest markets. Payoneer Elevate 2024 sessions are designed to address emerging dialogues in the Indian service exports space, encourage networking opportunities, and provide actionable strategies to empower the ecosystem to scale and succeed.
How has Payoneer's platform and services contributed to the growth and success of Indian SMBs in the service export sector?
Payoneer's platform and services have played a crucial role in the growth and success of Indian SMBs in the service export sector. From 2016 to December 31, 2023, customer growth in service exports on Payoneer India has risen by 54 per cent, with volume and revenue achieving CAGRs of 85 per cent and 88 per cent respectively. The average revenue per user (ARPU) in India service exports has increased by 22 per cent on our platform, with cities like New Delhi, Ahmedabad, Bengaluru, Mumbai, Hyderabad, Pune, and Surat being the major hubs for our service exports businesses. Payoneer's platform empowers these businesses to connect with global markets, receive payments seamlessly, and expand their presence in the international economy.
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