3 Questions Smbs Ask About Cross Border Payments Richard Gilbert GM, North America Payoneer

3 Questions SMBs Ask About Cross Border Payments Richard Gilbert GM, North America Payoneer

[email protected] Payoneer At A Glance Payoneer at a Glance

MSB US & E-Money Licensed, 150 800 PCI DSS compliant currencies with local Staff Fully regulated in the US, Europe and Hong Kong. clearing (no landing fees);

35+ 12 Languages supported Office locations and growing

20,000+ ~3MM 200+ BILLIONS Corporate senders Customers Countries and of dollars in volume per territories year

60.9% $117MM $200MM PROFITABLE CAGR over past Revenue 2015 Revenue 2016E Investors - Greylock, Carmel, SGE, 6 years PingAn, Nyca, Wellington

London UK Barcelona New York City Spain Durham New York Tel Aviv Hong Kong Israel North Carolina China Shanghai China

Gibraltar Tokyo Japan

Bangalore India Manila Philippines Palo Alto California

Stock Photography E-Commerce Marketplaces

Vacation Rentals Other

Payoneer Inc. is a registered Payoneer EU is a Payoneer is also an Money Services Business regulated Electronic Online Payment (MSB) with the U.S. Money Institution that Gateway Service Department of Treasury’s has passported its Provider in India, has a Financial Crimes license across the Money Service Enforcement Network entire EU and is a Operator License in (FinCEN). Principal member Hong Kong, and is a In addition, Payoneer with MasterCard® EU Funds Transfer obtained the proper State- Provider In Japan level Money Transmitter As a U.S. entity, Payoneer is PCI DSS licensing, in every State Payoneer complies with Level 1 compliant where it is required, and OFAC, and the offers licensed escrow requirements of the services through its Bank Secrecy Act (BSA) subsidiary, Armor Escrow.

What are the Considerations for SMBs?

How do they do it? Why Go Cross Border – New Sources of Growth

8 Why Go Cross Border? – Source product, talent or content

9 International E-Commerce

‘E-Commerce Isn’t Changing The World, Buyers Are Changing The World By Embracing Technology To Make Better Product Decisions’. Channel Advisor, Catalyst 2016

The worldwide expansion of the internet = new markets at drastically lower cost to entry.

E-commerce sales across the World are growing at double digit rates YOY.

Industry Forecasters are predicting that this continued growth could result in a global ecommerce market value of $3.3 Trillion with $1 Trillion CBT by 2020.

Mobile commerce growth - smartphones and tablets. 10 International E-Commerce

Black Friday 2015 - $2.74 Billion

Cyber Monday 2015 - $3.07 Billion

Amazon Prime Day 2016 - $600 Million

11 Global E-Commerce Market Size

12 Data Never Sleeps – The Always “On” Community

13 Why Do Global Commerce?

14 What considerations when expanding internationally? Key Challenges for Global Sellers

Payments/ Currencies

Language / Localization

Logistics / Customs Logistics Hurdles Localization Challenges Payments Are Hard

19 How do you do it? The Amazon Way Leveraging Marketplaces

22 Websites - The Key Acquisition Channel & Marketplaces - A Source For New Direct Clients.

Payoneer Survey Response From 380 Clients In N.A & Europe

What are your key channels for acquiring direct international clients?

Website 69%

Marketplaces 42%

“Word of Mouth” and referrals 42%

Other 8%

23 Why Sell On Marketplaces?

Payoneer Survey Response From 380 Clients In NA & Europe

Why do you work with marketplaces?

Payment guarantee 68%

Acquire additional direct clients 53%

Create additional revenue streams 52%

Diversify my business 38%

Supports my digital brand 29%

Other 3%

0% 10% 20% 30% 40% 50% 60% 70% 2480% Why Sell On Marketplaces?

Additional Reasons:

Opportunity To Enter New Markets At Low Cost & Risk. Exposure and increased reach through existing network of shoppers – Amazon 100 Million Active Users. Leverage an existing Framework For Selling. Incremental provision of additional services – Translation, Customer Service, Customs/ Duties, Product Fulfilment & Delivery, Returns. Diversification - Selling On Multiple Marketplaces Increases Sales Revenue Dramatically.

25 A Day (or days) in the Life of an International Wire

26 The Payoneer Account – Global B2B Platform

Marketplaces & Platforms Local Bank Withdrawal Payoneer is a featured payment Easily withdraw funds directly to option on leading marketplaces. your local bank account in local currency.

Billing Service Withdraw Funds at ATMs Send your direct clients a payment The Payoneer Prepaid MasterCard ® request by email. They can then pay enables you to withdraw cash from safely online using their credit card or ATMs worldwide within minutes. company bank account. 4 WAYS 4 WAYS TO TO GET USE YOUR Global Receiving Accounts EARNINGS We give you US, EU, JP, and UK PAID Online & In-Store Purchases receiving accounts so your Use the card to buy stuff – both re- international clients can pay you as investing in your business as well as cheaply as a local transfer. personal needs.

In Network Payments Make a Payment Business partners and suppliers Easily collaborate with your vendors by can pay you from their Payoneer making payments to other Payoneer account to yours, free of charge. customers free of charge.

Richard Gilbert [email protected] GM – North America