Payoneer CEO on Tariffs, Global Trade, and Stablecoin Potential

Impact of Tariffs on Global Trade

• ⚠️ Tariffs and uncertain global trade environments create a headwind for revenue, prompting companies like Payoneer to withdraw financial guidance.
• 🇺🇸 The health of the US consumer is critical, representing 43% of global consumption and driving 70% of the US economy.
• 🇨🇳 Payoneer sees significant revenue from Chinese entrepreneurs exporting goods to the US and from businesses operating cross-border without touching the US.
• ⚖️ The decision to pull guidance was a prudent move to maintain shareholder trust by providing clear visibility amidst trade uncertainties, particularly the embargo between China and the US.

Payoneer's Business and Outlook

• 📈 Payoneer is focused on long-term growth and building trusted relationships with shareholders.
• 🌍 Customers are increasingly focused on globalizing their businesses, with 40% of Payoneer's revenue coming from businesses trading internationally without US involvement.
• 🇨🇳 15% of revenue is from China exporting globally (excluding the US), and 20% from China-based entrepreneurs selling to US consumers.
• 🚀 Payoneer feels confident in its long-term future and sees value at current market levels, despite macro conditions.

Stablecoins and Future Innovations

• 💰 Payoneer customers hold $7 billion in funds, and the company views stablecoin momentum as confirmation of innovation in cross-border trade.
• 💡 While no significant stablecoin announcements have been made, Payoneer is well-positioned due to its distribution, brand, licenses, and last-mile relationships.
• 🤝 The company is focused on providing fast, effective, and inexpensive solutions for customers to move funds globally, potentially in partnership with others.
• 🌎 Stablecoins could offer more diversity and are of particular interest in regions like Latin America and APAC.
• 📊 Payoneer serves 2 million active customers and transacted $80 billion in 2024, focusing on practical applications for diverse cross-border SMB needs.