Feedback Friday: Payoneer Talks Digital Payment Services
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On January 4th, 2019 our own Andrew Maff sat down with TJ Hyland, Strategic Partnerships Manager of Payoneer, to talk about what Payoneer does and how it can help you with digital payments. Learn more about Payoneer: http://bit.ly/2ADumBH
TJ Hyland: So first of all, myself, my name is TJ Hyland. I've been at Payoneer for just a couple months now, but I'm super familiar with the whole industry of online selling and selling on Amazon, and eCommerce, and that whole thing.
Payoneer, at it's core, is a international payments company. We help people move money around the world. So whether that's ... We have a couple variety of products. But the main one that a lot of our online sellers use us for is our global payment solutions. So basically, the currency accounts that we provide to help people receive sales from their overseas market places and then repatriate those earnings back at better exchange rates. A couple other things that we do is we help people make payments out of those accounts. In those local currencies. Whether you have suppliers overseas and other currencies you want to pay. And then the other one that's quite big is if you have any virtual assistance. In the Ukraine or the Philippines is super popular. Helping make those payments is something we do super well. And then we have one new product that I was gonna mention and launch, which we are launching in the next couple weeks or days or so. But it's called Capital Advance. And essentially it's a new product to help not only international sellers, but also domestic sellers, with a working capital solution.
Andrew Maff: Nice. So as we have people rolling in here, by the way, if you guys are listening in, please obviously make sure to add any comments that you guys are having. I'll make sure that we approach them while we're here. But so, Ty, so I guess the main product that everyone's using for the most case or at least right now are the ones that are utilizing the overseas payment plans, conversion rates. Do you know when is the best time to actually withdraw some of that money from wherever you guys have it or to actually based on different conversion rates at certain times?
TJ Hyland: No one knows because no one knows where the exchange rates are going. Obviously there's ...
Andrew Maff: I don't know what happened.
TJ Hyland: If we knew where the exchange rate's going, we would benefit off them way more and we'd probably be on an island somewhere not necessarily having this conversation right now. But there's no way to know which way the markets are going. Especially in this time, it's so volatile. In the past, you could say that the market was moving or dependent on economic data that came out or just some low level political conversations. But now with President Trump, and Twitter, and Brexit, and trade wars in China, every single day, no one really knows what's gonna happen. Dollar can go up, dollar goes down, the stock market is super volatile as well. So the foreign exchange is just essentially another market that people monitor where the ... Most of our sellers are generally selling in Europe. So UK, Euros, even Canadian Dollar back to US Dollar. It hasn't been super volatile. Well, not at least as volatile since the Brexit decision two or three years ago.
But one of my clients once said to me, they were wondering whether they should think about moving their money, or holding it, or waiting for a best rate. And I said, "Well, what's your plan? What do you think's best?" And they said, "We kinda just take the law of averages." So every couple days or every couple weeks whenever the funds come in, we'll say we'll transfer it now. It may be the high of the month, it may be the low of the month. But they know next time, it might get higher. The problem is with holding your funds and hoping for a better rate, it can absolutely go the other way and end up costing you. With a lot of resellers where your margins are so small, the difference on the foreign exchange could essentially affect your profit. So if you can take the funds when you know you're gonna generate a profit and not get too greedy off it, then it usually works out.
Andrew Maff: Yeah. I also know that some sellers, they'll leave money overseas. And if they have a vendor out there that they need to pay, they can utilize Payoneer to pay the vendor because in some cases, depending on the exchange rate, they may invoice the seller in whichever dollar it is. So let's say it's Euro, we're gonna invoice you in Euros. And if you request them to ... Or I'm sorry. We're gonna invoice you in US. And if you take it, they may have milked in an exchange rate, they may have just assumed something. So you can even request for them to invoice you as a Euro so that you can actually build in that way and pay them through Payoneer so you can actually stable the money that way. Do you find that a lot of your sellers are actually using it like that?
TJ Hyland: Absolutely. More than ... Just the simplicity, it just makes things easier. And you have yours in your account. You're looking to pay a European company, it's super easy just go Euro Euro. The better example there is paying VAT or any sort of taxes internationally. They're not gonna invoice you in a different currency. They're gonna invoice you in their local currency. So the ability to pay them in local currency is gonna save you on the exchange rate. Is gonna save you on sending an international bank wire. Or whatever method your bank would want to do. If you have these foreign currencies in these accounts, you can transfer a majority back. But say you have to pay 1000 every quarter or whatever it happens to be, it can hold that amount and say okay, by the end of Q1 I'm gonna pay this. I'll hold this here and pay it out. So one, I'm VAT compliant, which is huge nowadays. You don't miss any payments or anything like that. Or aren't late.
Andrew Maff: The new product you mentioned on [inaudible 00:06:43] is that out yet? Or is that something that's coming out?
TJ Hyland: It is technically live. We can do it. It's just not open to everybody yet. We haven't made our big marketing push around it. But it's totally live. So helping sellers, it's usually right now, based off Amazon sales. So based through the Amazon API, we basically dive in and take a look at your sales history and your payment history over the previous six months or so. You have to be selling for about six months. But from there, we can take a look and tell you what we would offer you. And what's good is I personally think that it's a super great price. It's 1.25%, which is super affordable, I think.
Andrew Maff: Nice. So how does that compare to the program that Amazon currently offers?
TJ Hyland: To be honest, I'm not super familiar with Amazon's lending product. But I think it's exactly that. It's a lending product. So they I believe that the fee that they charge is a little higher. Whereas ours is basically a working capital. We call it capital advance. How it works is say you needed ... We were willing to give you $10,000, right? Based off your sales, we could say we'll give you $10,000. Right now, it's set for a 30 day period. That's soon to expand to 60 and 90 hopefully. But you have until that 30th day to pay your funds back. So how I look at it is it's a huge opportunity for both resellers and private label sellers who resellers, cash is king there, right? You need more money to buy more product, to sell more product. Turnover is basically what they're looking at. And then private label, to launch a new line or if you sell pots and now you want to sell a frying pan, it's gonna take some time and some money that maybe you don't necessarily have yet to launch that. But you have some sales history that proves that you know what you're doing. You're a proven seller. You can get it going. We're happy to help sellers grow.
Andrew Maff: Okay. So what is it that you guys tend to find? Like Payoneer tends to be ... There's this one thing that we offer that everyone seems to not realize or what is it that usually people go, "Oh wow, that's a nice additive that I didn't know about."
TJ Hyland: About Payoneer?
Andrew Maff: Yeah.
TJ Hyland: Sorry about that.
Andrew Maff: Oh, there you are. No worries.
TJ Hyland: I think that people don't realize how much we can do and how many currencies we can pay into. Typically we can receive funds in just probably a handful of countries that Amazon is in. Whether that's in Europe, Canada, China, Australia, India as well. People don't realize that we can also have our other side of the business. That we can pay out into over 200 countries.
Andrew Maff: Oh wow.
TJ Hyland: Or 200, yeah, countries. So I think that's a huge part when it comes to paying suppliers or paying virtual assistants. A large number of our sellers use us to pay their virtual assistants overseas. Because sending funds into the Philippines is not always the easiest. A lot of times, this comes back to our conversation earlier. A lot of times, they'll just say, "Okay, send me US Dollars because that's easier for you." And they'll take the dollars. But not necessarily that they're gonna charge you up anything. But if you can send them Filipino Pesos and make it super easy for them to receive that directly into their account, no additional fees by their own bank, I think they're gonna be a little more appreciative of that.
Andrew Maff: Yeah. Oh man, so there's a question I wanted to ask. Oh, of course. So this is ... I didn't even think about this. This is our first one for 2019. So first of all, happy new year.
TJ Hyland: Yeah, you too.
Andrew Maff: What is it you guys are expecting for 2019? Anything in the industry that you guys have started to see that you're expecting a decent shift in?
TJ Hyland: So we are obviously a global payments company, but just following along the trends that a lot of these market places are making. Specifically, Amazon. Amazon's making such a huge push to go global. Helping domestic sellers expand internationally, Amazon's uniquely now trying to work directly with Chinese sellers to help them grow globally. A lot of them, Chinese sellers will just go directly to the US. But they want to help them and everyone really. But expand to Europe, expand to India. That's gonna be a huge focus for Amazon in 2019 and it's gonna be a big focus for us too. Just growth, right. So everyone, whether you're just starting out as a new product line, whatever, you need to get from A to B, you need to grow. But even if you're an established friend, if you're a multi-million dollar seller, why not double your sales? Why not triple your sales? So growing globally is a huge opportunity to do that.
Andrew Maff: Yeah, we've kind of noticed the same thing. Amazon's obviously making it easier and easier for people domestically to be able to just go straight into Europe or straight into India, or Australia, or anything like that. So it's definitely interesting to see how some of these sellers are really starting to pivot to make their products more globally accessible and appropriate for each culture. And it's really interesting to see where everything's going to end up going over the next couple of years on if you launch a product, do you need to launch something that you know is also gonna be perceived in UK, and in India, and China. And it's gonna be interesting to see if Amazon can bring all of the cultures together.
TJ Hyland: It's kinda crazy because they have in a sense. Whereas 10 years ago Amazon was nothing in China, nothing in India, nothing in Australia, minimal and in Canada and even Europe. Now it's for other reasons, but it's a global brand with global notoriety, which provides a huge platform for what could be just a mom and pop shop in Ohio to selling to China. That wouldn't have happened. And just the program we've made. Even Amazon, but all the whole industry in the last two years has been incredible.
Andrew Maff: Yeah. So Ty, love to make these short and sweet trades of point so I don't waste a lot of your Friday. I really appreciate you doing this with us. You mind giving us some closing statements to let everyone know how they can find out more about Payoneer?
TJ Hyland: Yeah. Absolutely. So you can obviously find details about Payoneer at Payoneer.com. It's a global company so no matter what site you're on, you'll find some local details to speak to someone if you wish. Absolutely reach out to me. My email is TJHY@payoneer.com. So that's T-J-H-Y. Just four letters. @payoneer.com. Happy to speak to anyone that has questions regarding the working capital product, our Capital Advance product, since that isn't on our website yet. I think it's a huge opportunity to start 2019 off rolling. So that when holiday sales do come around, you have your product, you have your inventory, you're ready to go because you can't start planning too soon.
Andrew Maff: Yeah. And I actually have a couple people I may have to introduce you to now that you guys are offering that too. So I'll stay in touch and that'll be off camera. Everyone that joined us today, I really appreciate it. Obviously, we do these every Friday, so feel free to join us next Friday. And we'll put these up on our YouTube and our blog and all that stuff. So if you guys have any questions, feel free to reach out to either myself or Ty. But much appreciated, Ty. I really appreciate it. I will talk to you soon and enjoy your Friday.
TJ Hyland: No problem, guys. Have a good weekend. Thank you.
Andrew Maff: Have a good one. Bye.