New York-based Payoneer, an Israeli-American global B2B online payments fintech company, acquired Silicon Valley-based startup Armor Payments, the only licensed business-to-business payments provider offering Escrow-as-a-Service (EaaS).
The acquisition will enable buyers and sellers, whether transacting directly or through B2B marketplaces, to reduce the uncertainty and risk associated with high-value B2B purchases by making secure, online escrow payments anywhere in the world.
Payoneer was founded in 2005 with $2 million in seed funding from then-CEO Yuval Tal and other private investors. Since then, the company has raised $90 million in 12 funding rounds to date from Israeli, Chinese and American venture capital investors, including Greylock Partners, Carmel Ventures, 83North, Crossbar Capital, Ping An Insurance, Susquehanna Growth Equity, Nyca Partners, Wellington Management and various Israeli angel investors.
The acquisition combines the security of payments provided by Armor Payments with Payoneer’s multi-currency cross-border payment capabilities, creating new global opportunities for businesses of all sizes. It addresses the huge market of B2B transactions between $500 and $1,000,000, where credit cards and letters of credit are not suitable. With Armor Payments, Payoneer is now able to close this gap in B2B trade, disrupting an industry untouched for decades.
Armor Payments acts as a trusted third-party intermediary between buyers and sellers, holding funds in secure escrow accounts until both parties are satisfied that the delivery of goods or services has been executed. The EaaS solution allows B2B marketplaces to integrate a simple API and offer secure payments that protect their buyers and sellers. Armor Payments was founded in 2014 by Scott Reynolds (CEO) and Mark French (CTO), and is headquartered in Los Gatos, Calif.
“The payments infrastructure for businesses has hardly changed in the past 30 years and it’s time that businesses are given the same high level of trust, security and ease of use that consumers have been enjoying all this time,” said Scott Galit, CEO of Payoneer.
“Joining Payoneer is a natural step for our company,” said Scott Reynolds, co-Founder and CEO of Armor Payments. “It will open up our solutions to the huge and underserved international B2B market.”
Armor Payments will be joining Payoneer’s office in California and maintaining its development center in North Carolina.
Payoneer empowers global commerce by connecting businesses, professionals, countries and currencies with its innovative cross-border payments platform. Payoneer enables millions of businesses and professionals from more than 200 countries to reach new audiences by facilitating seamless, cross-border payments. Thousands of leading corporations including Airbnb, Amazon, Getty Images, Google, and Upwork rely on Payoneer’s mass payout services. The company has 600 employees globally across six offices.