EXCLUSIVE: Payoneer CEO Talks Partnerships, Growth Strategy, Earnings On 'SPACs Attack'

Payoneer is set to go public with an implied pro-forma enterprise value of $3.3 billion via the special purpose acquisition company FTAC Olympus Acquisition Corp FTOC.

Payoneer CEO Scott Galit appeared on Benzinga's YouTube show "SPACs Attack" for an exclusive interview Thursday.

Payoneer is a payment and commerce-enabling platform which powers growth for millions of digital businesses worldwide. The company's mission is to democratize access to financial services and drive growth for digital businesses around the world. 

Payoneer works with nine of the largest 20 companies by market cap in the world, Galit said. 

The company recently partnered with eBay Inc EBAY to expand the company's "initiative to manage payments to sellers" in other parts of the world outside of the U.S., he said, adding that Payoneer is moving into the execution phase of its partnership with eBay.

Related Link: Payoneer Announces Partnership With eBay: What Investors Should Know

Payoneer's Growth Strategy: Payoneer's strategy for sustained growth includes leveraging market momentum, adding partnerships, actively investing in additional services and capitalizing on inorganic growth through strategic M&A, Galit told Benzinga.

Being a global company is one of the key pillars that defines Payoneer as a company, he said, adding that revenue is largely generated from small- and medium-sized businesses around the world.

"Payoneer is a play on the global digital economy," Galit said. 

The company acts as an on-ramp to digital commerce for small businesses from diverse markets around the world, he said. 

Payoneer Earnings Highlights: Payoneer recently reported first-quarter financial results. Volume increased 61% to $13.3 billion compared to $8.3 billion in 2020. Revenue increased 23% to $100.6 million compared to $82 million in 2020, while transaction costs declined to 20% of revenue.

The results in the company's quarterly earnings report were improved across the board, Galit told Benzinga. Everything is working for the company even better than it had expected, he added. 

Galit On Crypto: The company has spent a lot of time monitoring cryptocurrency, but it is not a part of the business at this point in time, Galit said.

The Payoneer CEO said he doesn't feel crypto would provide an advantage for the company from a technology perspective. 

"We have the ability to incorporate" cryptocurrency into our business if the right opportunity presents itself, he said.

SPAC Notes: The SPAC route was the best path to the public market for Payoneer because it allowed the company to present potential investors with forward projections after an up-and-down year during the COVID-19 pandemic, Galit said.

Payoneer entered into a definitive agreement to merge with FTAC Olympus Acquisition Corp on Feb. 3. The transaction is expected to close before the end of the second quarter. Upon closing of the transaction, the newly created company will be named Payoneer Global Inc.

At last check Thursday, FTAC Olympus Acquisition shares were trading slightly higher at $9.91.