There aren’t many top-class online financial services providers except for a few names in the industry. Firstly, the biggest name in the industry is PayPal, which is the undisputed leader around the world.

However, there isn’t much competition after PayPal. The next company that comes closest to it is Payoneer. Both companies provide similar services, although they are very different as well.

PayPal originated in 1998 in Palo Alto, California. Payoneer, on the other hand, got incorporated in 2005 in New York. Although PayPal focuses on all types of users, including individuals and businesses.

Payoneer, on the other hand, focuses on a specific portion of the market, which includes businesses and professional users, such as bloggers, freelancers, affiliate marketers, etc.

Apart from the focus on these users, Payoneer also allows its users to benefit from its integrations. These integrations include various online marketplaces and platforms.

PayPal, however, does not need integrations as almost all websites or platforms support it. Payoneer lacks the same level of popularity due to its targeted userbase being different.

Payoneer has many different features it offers its users. These include online receipts from various sources, which can be other Payoneer users, third parties outside the platform, and mass payout companies. Similarly, the platform allows users to pay other Payoneer users, often free of charge.

Payoneer also has a MasterCard feature, which helps users order a debit card and use it for different transactions. Payoneer has an e-wallet feature as well, to allow users to store their balance in three various currencies.

The current vision of the company is to be a powerful end-to-end payment platform for enterprises, marketplaces, and SMBs. Similarly, its objectives include listening and engaging with its users. The goals and objectives of a company also affect its business model.

Therefore, given below is a brief overview of the company’s business model. However, before getting into details, it is crucial to understand what a business model means.

What is a business model?

The business model of a company is a plan that it uses to define how it wants to make a profit. Usually, the company does this by defining different factors that affect its revenues and expenses.

These factors include its products or services that it plans to sell, its target customer base, its forecasted expenses.

For all profit-making companies, a business model is a crucial element in their success. Even similar companies operating in the same market may have different business models.

What is Payoneer’s business model?

Payoneer’s business model isn’t sophisticated and is closely related to its goals and objectives. First of all, the services that Payoneer offers are well-defined to its users.

As previously mentioned, its products mainly include receipts from different sources, including individuals and businesses. It also allows users to make payments to other Payoneer users. However, it does not earn from these payments.

Similarly, other products that the platform offers include its e-wallet system. Through this system, Payoneer gives users three different currency accounts that they can use to receive funds. Furthermore, the platform also offers users a debit card in cooperation with MasterCard.

The debit card is one of its most popular products and also earns the platform the most. Apart from these, the platform also offers other small services such as conversion between currencies, billing customers, withdrawing to bank accounts, account statements, and much more.

The target customer base of the platform includes business and professional users only. Therefore, its services are more suited to these users rather than individuals.

It is one of the main reasons why Payoneer has not attracted the same level of users as its competitor, PayPal. To attract new users, Payoneer also uses targeted ads for each market.

The revenues that the platform receives are mostly commission-based. There are several fees that the platform earns from its customers. These include charges related to transferring of funds, converting currencies, withdrawing funds, etc.

Its main source of income, however, is the Payoneer card. The platform charges fixed fees for transactions through the card.

For example, it bills its customers $3 for ATM transactions, $1 for balance inquiries, and $1 for cancellations. Furthermore, it charges customers $29.95 as an annual subscription for the card and a $12.95 renewal fee.

The expenses borne by the platform are not well-defined, though. It is mainly because the company is a private company. Therefore, its detailed expenses breakup is not available publicly. However, the company has 14 offices worldwide and employs 1395 employees.

Hence, it must pay expenses for keeping things running. Similarly, the company pays expenses related to hosting fees, managing related banks and platforms, MasterCard charges, and much more.


Payoneer is a top choice between users looking for online financial services solutions. The platform was founded in 2005 and has attracted many users worldwide.

The business model of Payoneer includes its services, targeted customers, sources of revenues, and forecasted expenses. Given above is a detailed business model of the company.