Asia online money transaction ecosystem from the eye of a PayPal competitor

Payoneer is a leading provider of global payout solutions, offering a simple way for individuals or businesses to send money to other people and businesses worldwide. Headquartered in New York, the company is known for being PayPal’s competitor. But it has a perk over PayPal in the international market: it doesn’t require a bank account for verification.

Oded Zehavi, chief revenue officer of Payoneer, previously served as business development director at PayPal is travelling around Southeast Asia to meet with potential partners and customers right now. Operating in over 200 countries around the world, Payoneer definitely has some experience with different types of markets. Tech in Asia caught up with him to hear how the company sees the e-commerce and money transferring ecosystem in the region, where both obstacles and opportunities lie.

The rise of online marketplaces

Airbnb is one of many Payoneer clients, but it’s not the only online marketplace client the company has. According to Oded, marketplace companies are a strong trend in Asia. It gives people the power to grow from a domestic to a global company. But at the same time, they can also localize a global company to a small niche domestic market. Take these Airbnb-style startups for food and tourguides, for example. Crowdsourcing empowers people, so when looking at startup trends, Oded says an online marketplace is still something an entrepreneur should consider.

Asian e-commerce is becoming more global

Payoneer believes many e-commerce sellers in Asia tend to be domestic. The problem is they can sell in their own country but they don’t know how to expand beyond it. However, according to Oded, this trend is changing:

Right now, it seems like the Chinese only sell their products to within China or Hong Kong. But I see more and more sellers trying to go global. I also see more APAC players, such as Agoda becoming a strong global player. Since we also work with Amazon, the obvious trend that we see is that more Chinese and Japanese sellers on Amazon have discovered new opportunities to sell their products on Amazon.com instead of just .ch or .jp.

The anonymous issue

Payoneer’s customers are vary. With different types of services and customers from each country, what they share in common is the need for safety during transactions.

In Asia, the ability to identify customers is not simple. Some of Payoneer’s main investments are in both tech and human resources to collect IDs and being aware of who it serves. However, being anonymous has become an issue when dealing with money. Oded commented:

One of the thing we see as our challenge is that some people like to go anonymous and they don’t like to disclose anything online. It becomes tricky for us. This is a loophole for the marketplaces that can lead to fraud. However, we invest a lot to reduce the risk and identify both the sender and receiver of each transaction.

Bank account-less

As most Asian countries are developing countries, access to banking services – especially international wire transfers – are still lacking in many rural areas. It’s a complex process to move money from one country to another.

Many consumers with no bank accounts use Payoneer thanks to the popularity of its Mastercard prepaid card service. People in Asia tend to opt in to use this more than other parts of the world. In addition, the fact that the company doesn’t require a bank account for verification makes it a payment solution of choice for many big companies, as these companies are also aware of the “no bank account” issue in Asia.

Asians love social media

According to Payoneer, when comparing Asian users’ behavior to the rest of the world, social media’s influence dominates. The company often gets feedback from Asian countries via social media channels. Bearing this in mind, it’d be smart for any international company to make social media one of the main channels to engage with customers in Asia.

Payoneer now has more than two million customers worldwide with a few billion dollars processed so far.

If you want to learn more about international transactions and global e-commerce trends, Oded will be speaking at Hubba Thailand tomorrow under the topic “Global Payments Challenges with Payoneer“. For more info, stay tuned on their website or swing by the co-working space if you’re in Bangkok!

(Editing by Paul Bischoff)

(Image via Flickr user epSos.de’s photo)


The post Asia online money transaction ecosystem from the eye of a PayPal competitor appeared first on Tech in Asia.
Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • China ignores global outcry vs reclamation
    China ignores global outcry vs reclamation

    On Wednesday, G-7 foreign ministers issued a Declaration on Maritime Security expressing alarm over “unilateral actions, such as large scale land reclamation, which change the status quo and increase tensions” in the region. In their communiqué, which did not specifically mention China, the ministers expressed belief that reclamation activities were meant to “change the status quo” in the West Philippine Sea and South China Sea, through which 40 percent of global trade passes. …

  • Project NOAH exec receives recognition
    Project NOAH exec receives recognition

    Project NOAH executive director and University of the Philippines professor Mahar Lagmay recently received recognition from the European Geosciences Union (EGU) for his work in disaster risk reduction and mitigation in the Philippines. …

  • Nightclub ban for US troops
    Nightclub ban for US troops

    The US Pacific Command has banned its troops in the Philippines from bars and nightclubs, a spokesman said yesterday, with the trial under way of a US Marine accused of murdering a transgender Filipino he met in a bar. …

  • US-Phl war games to start under China’s shadow
    US-Phl war games to start under China’s shadow

    Thousands of American and Filipino soldiers will kick off tomorrow expanded wargames, showcasing a deepening  defense alliance as alarm bells ring over China. The 10-day exercises in the Philippines are an annual affair between the longtime allies, but this time they will involve double the number of soldiers as last year in a sign of their expanding military partnership. The Philippines is seeking more US military and diplomatic support to fend off China’s increasing forcefulness in its bid …

  • Palace defends legal tack in sea row
    Palace defends legal tack in sea row

    There is nothing weak about taking the legal and diplomatic approach to push for the country’s claims in the disputed West Philippine Sea, Malacañang maintained yesterday. On Friday, Bayan Muna Rep. Neri Colmenares led a rally in front of the Chinese consulate in Makati City to protest China’s massive reclamation activities in the Spratly island group to fortify its presence in the disputed waters. Colmenares also criticized the Philippine government for supposedly not doing enough to defend …

  • Veloso sons urge authorities to save mother from death
    Veloso sons urge authorities to save mother from death

    The sons of Mary Jane Veloso, who is facing execution in Indonesia for drug smuggling, yesterday appealed to government officials to do everything to spare their mother from death. “We love you,” Mark Daniel, 12, said when asked for a message for his mother following a press conference at the University of the Philippines in Diliman, Quezon City. Mark Daniel, an incoming Grade 8 student, reiterated his appeal to those in power to help save his mother from death. His younger brother, …

  • US-Philippines wargames to start under China's shadow
    US-Philippines wargames to start under China's shadow

    Thousands of American and Filipino soldiers on Monday will kick off expanded wargames, showcasing a deepening defence alliance as alarm bells ring over China. The 10-day exercises in the Philippines are an annual affair between the longtime allies, but this time they will involve double the number of soldiers as last year in a sign of their expanding military partnership. The Philippines is seeking more US military and diplomatic support to fend off China's increasing forcefulness in its bid …

  • Bar ban for US troops in Philippines amid murder trial
    Bar ban for US troops in Philippines amid murder trial

    The US Pacific Command has banned its troops in the Philippines from bars and nightclubs, a spokesman said Saturday, with the trial under way of a US Marine accused of murdering a transgender Filipina he met in a bar. Thousands of American and Filipino soldiers will on Monday kick off 10-day annual military excercises, according to Captain Alex Lim, a spokesman for the US forces, but there will be strict controls on their free time. Lim would not say why the restrictions were imposed but …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options