16% YoY growth in revenue excluding interest income powered by B2B customers and Card product
Payoneer Global Inc. (“Payoneer” or the “Company”) (NASDAQ: PAYO), the global financial technology company powering business growth across borders, reported financial results for its first quarter ended March 31, 2025.
According to Payoneer CEO, John Caplan, “Payoneer delivered another solid quarter, driven by strong Average Revenue Per User (ARPU) growth, increasing adoption of our high-value products, focus on quality customers, and continued profitability. We also extended our regulatory advantage, becoming the third foreign company licensed as a payment service provider in China. This reflects our long-term commitment to complex, high-potential markets.”
While the recent headlines may be inducing a lot of uncertainty and unease, Payoneer is witnessing positive outcomes in Southeast Asia, Latin America, and EMEA region (Europe, the Middle East, and Africa). Despite ongoing volatility in the global trade corridors, these shifts have opened new opportunities.
“Global trade is rapidly evolving. Payoneer’s customers are adapting, and we are right there with them. Approximately 40% of our revenue comes from helping customers sell into non-US markets. As supply chains shift and global workforces expand, we’re positioning ourselves to capture the upside.” Caplan added.
“We’re executing our strategy with discipline. We are balancing growth and profitability while strengthening our long-term moat by investing in our payments infrastructure and differentiated capabilities. Our strategy is simple: build the financial stack for the next generation of borderless SMBs and be their long-term partner as they grow and expand globally.” Caplan concluded.
First Quarter 2025 Business Highlights
- Revenue excluding interest income grew 16% year-over-year, driven by 7% volume growth and significant take rate expansion with SMB customers.
- ARPU excluding interest income grew 22%, accelerating for the seventh consecutive quarter. Growth was driven by continued strength among larger customers, growth in higher take rate B2B, Checkout and Card franchises, and various pricing initiatives.
- SMB customer revenue of $170 million grew 18% year-over-year, reflecting:
- SMBs that sell on marketplaces revenue of $110 million, up 8% year-over-year.
- B2B SMBs revenue of $52 million, up 37% year-over-year.
- Merchant Services (Checkout) revenue of $7 million, up 96% year-over-year.
- $1.4 billion of spend on Payoneer cards, up 29% year-over-year, with increased usage across all regions.
- $6.6 billion of customer funds (including both short-term and long-term funds) as of March 31, 2025, up 11% year-over-year.
- $17 million of share repurchases at a weighted average price of $9.04. Share repurchases slowed versus $51 million in the prior year period at a weighted average price of $4.84.
- In April 2025, announced the completion of a previously announced acquisition of a licensed China-based payment service provider, Easylink Payment Co., Ltd. The acquisition strengthens Payoneer’s global regulatory infrastructure and positions the company to better serve its local customers in China as they export globally.
2025 Outlook
“Payoneer delivered 16% growth in revenue excluding interest income and continued strong profitability in the first quarter. We continue to execute against our long-term vision and strategic roadmap. We remain confident in our long-term thesis – serving the complex needs of global SMBs and entrepreneurs by providing a comprehensive and differentiated financial stack that enables them to achieve their cross-border ambitions.” said Bea Ordonez, Chief Financial Officer of Payoneer.
The company’s 20-year presence has given them a long track record of resilience and innovation in the face of global headwinds and they only have plans of continued improvement in the coming years. “Our business and the customers we serve are diverse and our focus during this time is squarely on supporting our customers as they navigate the dynamic environment. Some customers may benefit from potential shifts in global trade and supply chains and we are focused on ensuring we and our customers are well positioned to capture potential new opportunities.” ends Ordonez.
Ordonez concludes by sharing “Our business and the customers we serve are diverse and our focus during this time is squarely on supporting our customers as they navigate the dynamic environment. Some customers may benefit from potential shifts in global trade and supply chains and we are focused on ensuring we and our customers are well positioned to capture potential new opportunities.”
