Payoneer, a global provider of payment processing technologies, has added another $180 million to its already sizable war chest as it looks to continue to grow its payment services.
Already profitable, and with a solid amount of cash on the balance sheet, the new money will double the company’s product development and technical staff, according to the company’s chief executive officer Scott Galit.
“We are in the business of helping businesses trade with other businesses across borders,” says Galit. “We have local collection capabilities around the world. This is something that Visa and MasterCard do with consumer payments, but it doesn’t exist in business-to-business.”
For now, the company’s focus seems to be on China, where Payoneer has launched local bank account services in China for customers that don’t have Chinese accounts.
Money from the new round came from the late-stage investment firm Technology Crossover Ventures, with an additional commitment from Susquehanna Growth Equity.
“Payoneer is taking advantage of two major trends, including the continued evolution of payment platforms from analog to digital,” says Woody Marshall, a general partner at TCV who is expected to be joining the Payoneer board of directors. “This is how you open up global commerce with the internet as a platform.”
Global payment processing for businesses is a big business in its own right. Payoneer, Adyen, Bluesnap and PayU are all multi-million dollar companies working on some aspect of the payment problem for companies selling in global markets.
“The payments world is a very significant focus for us at TCV,” says Marshall. “[With Payoneer] you’re giving a foreign company something that looks like a virtual U.S. bank account and shipping money from one U.S. bank account to another is pretty easy.”
This is likely Payoneer’s last round before seeking an initial public offering, and caps a busy year for the payment processor. It opened offices in its India, Japan and the Philippines; partnered with global marketplaces and networks like Rakuten.com and Linio; and launched new billing and escrow services.