International money transfer services designed for banking institutions

Payoneer Joins the Cross-Border Payments Market

In the rapidly evolving digital banking landscape, user experience is paramount. This is why many digital banks are opting for a quick route to market by leveraging someone else's infrastructure. The latest entrant in this arena is Payoneer, who have launched a platform designed for banks, joining the likes of TransferWise in the cross-border payments market.

Western Union and Cambridge are also established players in this market. However, it remains uncertain if platforms like Payoneer's and TransferWise's "X for Banks" offerings can attract the bigger incumbent banks.

Traditional banks have typically relied on the unbranded white-label products of other providers. But lately, there's a shift towards building one's own set of rails, direct banking relationships, and bank accounts across the globe. This strategy allows banks to potentially bypass the SWIFT network, as SWIFT has recently announced a new instant payment strategy.

Payoneer, under the leadership of General Manager Eyal Moldovan, is one such player that has invested in creating its own global infrastructure. While details about specific major banks using Payoneer's services for cross-border payments are not publicly disclosed, it's clear that offering their platform to banks is a strategic move for these cross-border payments providers.

Neobanks, in particular, are looking to integrate other companies' products into their offerings to achieve scale and attract more customers. By using a cross-border company's payment rails, banks can gain faster access to local payment networks without the need to set up local market operations and correspondent banking relationships.

Interestingly, while TransferWise wants the customer to know they are powering the product, Payoneer focuses on promoting its ecosystem to banks. This approach suggests a competitive edge in the market, with each player striving to carve out their niche in the cross-border payments sector.

According to an article on LinkedIn by Valentina Vitali, each of these players is making significant strides in building their own infrastructure, while others are content to work behind the scenes and simply move the money. The future of cross-border payments promises to be an exciting space to watch as these players continue to innovate and disrupt the traditional banking landscape.