Payments firm Payoneer is partnering with Mastercard to offer a new digital purchasing card. Payoneer works to remove friction for small businesses paying and getting paid globally. The Payoneer Digital Purchasing Mastercard helps SMBs make cross border purchases and connect to mobile wallets.
What's happening: Demand for digital solutions and payments have accelerated during the pandemic. This partnership addresses SMBs that appreciate access to immediate funds and easier to use solutions to invest back their earnings to drive business growth.
Payoneer's new card joins the firm's Prepaid Card as an option for SMBs to make global purchases. The card also provides access to multiple cards, which can streamline business expenses across platforms, storefronts and product lines.
The product: The Digital Purchasing Mastercard is a credit card but has a daily spending limit that uses a business' Payoneer currency balance to prefund the use of the card up to a daily spending limit. The prefunded amount can be customized using card top-up settings in a Payoneer account.
The new product also comes amid growing competition in the virtual card market.
“The significant global reach of Payoneer’s ecosystem paired with Mastercard’s unparalleled reach will provide small businesses, e-commerce merchants and freelancers around the world will facilitate their business growth by allowing them to easily pay suppliers, marketing partners, and employees, creating a borderless business network for our customers," said Charles Rosenblatt, chief strategy officer at Payoneer.
The new Payoneer card is currently being issued only for use in U.S. dollar transactions and on a limited basis, with plans for a broader rollout during the second half of 2021.
Payoneer's momentum: Payoneer is set to go public via a merger with a Betsy Cohen-led SPAC. The company has expanded its product and service offerings to handle both sides of the transaction, as SMBs increasingly buy and sell internationally.
This new product also points to an expanding relationship Payoneer has struck with Mastercard to hone in on serving the small business market.
“We are committed to supporting the SMB segment, making our partnership with Payoneer even more meaningful. We are looking forward to working closely to reach this critical segment and offer faster, more secure and convenient digital payments that address their evolving needs," said Sherri Haymond, executive vice president, digital partnerships at Mastercard.
"Through the Payoneer Digital Purchasing Mastercard, SMBs will be empowered to choose how they pay and get paid and have immediate access to funds earned, which is critical as the demand for digital payments continues to accelerate.”