Payoneer's Impressive Business-to-Business Earnings for Q1 2024: CEO John Caplan Discusses Financial Results
Payoneer, a leading global payment solution provider, has announced impressive results for its Q1 2024 financial period. The company's B2B and Merchant Services businesses have been the key drivers of this success.
Strong SMB Revenue Growth
Small and medium-sized businesses (SMBs) have been a significant revenue generator for Payoneer. In Q1 2024, SMB revenues grew by 18% year-over-year to $183 million, accounting for 70% of Payoneer's total revenues.
Rapid Growth in Merchant Services (Checkout)
The Merchant Services segment, previously known as Checkout, showed an impressive 86% revenue growth to $9 million. This robust growth within Payoneer's platform offerings is a testament to the company's strategic focus and execution.
Significant B2B Growth and Take Rate Expansion
The B2B segment revenues rose by 37% to $58 million. Notably, the B2B take rate (the percentage fee Payoneer charges on transaction volumes) increased significantly from 1.73% in Q2 2024 to 1.99% in Q2 2025, marking the highest take rate growth among Payoneer's services.
Volume and Take Rate Gains
Overall, Payoneer experienced 11% volume growth across SMBs, combined with take rate expansion. This strengthened revenue excluding interest income by 16% year-over-year.
Cross-Selling Success
Payoneer has been successful in increasing penetration in each customer by cross-selling across multiple products. As a result, over half (53%) of active customers now use three or more accounts payable products, up from 40% in 2022.
ARPU Expansion
The average revenue per user excluding interest income increased by 21% year-over-year, growing from $265 in 2022 to $425 by 2024. This reflects more valuable customer engagement and pricing power.
Geographic and Operational Diversification
Payoneer continued to expand its geographic footprint and operational services, including strategic partnerships like the one with bKash in Bangladesh. These partnerships facilitate wider merchant accessibility and payment flexibility.
Regional Growth
The growth in Payoneer's B2B segment was particularly strong in the APAC region. The APAC region was a key contributor to Payoneer's overall growth in Q1 2024.
Future Growth Prospects
Payoneer's B2B and Merchant Services businesses are expected to continue as major growth drivers for the company in the near future. The company is also considering M&A opportunities to further accelerate its growth in the B2B sector.
Financial Highlights
- Payoneer's Q1 2024 revenue increased by 19% to $228.2m.
- The adjusted EBITDA margin for Q1 2024 was 28.6%.
- Payoneer increased its guidance for FY 2024, projecting revenue to reach $895m-905m and adjusted EBITDA to reach $200m-210m.
- Larger, higher volume ICPs increased by 13% YoY.
- Volume in Q1 2024 increased by 21% YoY to $18.5bn.
- The growth in Q1 2024 was driven by increases across all channels.
- Payoneer's ICPs (ideal customer profiles) increased 8% YoY to 530,000.
In summary, the record results were driven by accelerating B2B revenue and take rates, rapid Merchant Services growth, improved ARPU from focused cross-selling, and sustained SMB customer strength combined with geographic diversification.
- The B2B and Merchant Services businesses, which were the key drivers of Payoneer's success in Q1 2024, are anticipated to continue as significant growth contributors for the company in the near future.
- The Merchant Services segment, a key element of Payoneer's offerings, displayed an astounding 86% revenue growth in Q1 2024, indicative of strategic focus and execution within the company's finance and investing endeavors.
