Payoneer at Goldman Sachs Conference: Strategic Transformation and Growth

On Tuesday, 09 September 2025, Payoneer Global Inc (NASDAQ:PAYO) presented at the Goldman Sachs Communicopia + Technology Conference 2025. CEO John Caplan outlined the company’s strategic shift towards high-value customers and industries, highlighting significant growth metrics and partnerships. Despite challenges in the trade environment, Payoneer showcased resilience and a focus on profitable growth.

Key Takeaways

• Compound annual revenue growth of 16% since March 1, 2023
• Revenue per customer increased by 50%
• B2B business revenue grew by 37% in the first half of 2025
• Strong cash position with $500 million and no debt
• Additional $300 million authorized for share buybacks

Financial Results

• Revenue per customer increased by 50% since March 1, 2023
• Customer balances grew by 29%
• Core business EBITDA reached $14 million in 2024 and $16 million in the first half of 2025
• Adjusted EBITDA margins remained flat at 25% despite interest rate challenges
• B2B business accounted for 30% of core revenue with a 37% growth in the first half of the year

Operational Updates

• Focus on ideal customer profiles, particularly goods exporters in China and global B2B services
• Partnerships with Stripe for checkout solutions and Citibank for blockchain treasury flows
• Licensed to operate in mainland China, providing a strategic advantage
• Payoneer card usage increased to $1.5 billion in Q2 2025, a 25% year-over-year rise

Future Outlook

• Emphasis on high-value geographies and industries for profitable growth
• Reducing focus on a broad market approach to unlock business model leverage
• Continued exploration of market consolidation opportunities
• Ongoing share buybacks as a signal of confidence in company value

Q&A Highlights

• Resilience in dynamic trade environments with global distribution expansion
• Stablecoins seen as an opportunity for Payoneer, leveraging its global network
• Expansion in China expected to increase market reach and cost synergies
• Significant customer interest in Payoneer card, especially in the APAC region

For a deeper understanding of Payoneer’s strategies and performance, refer to the full transcript below.

Full transcript - Goldman Sachs Communicopia + Technology Conference 2025:

Unidentified speaker, Interviewer, Goldman: Okay, so joining us today and kicking off day two of the conference, we have John Caplan, CEO of Payoneer. Prior to joining Payoneer, John served as President of North America and Europe at Alibaba, the cross-border B2B business at Alibaba, to be specific. John, thank you for joining us. We’re pleased to have you at the conference once again this year.

John Caplan, CEO, Payoneer: It’s great to be here. Thanks for having me.

Unidentified speaker, Interviewer, Goldman: Let’s kick it off at a high level. It’s been two and a half years since you took over as CEO. One of the main priorities has been the targeted focus on ideal customer profiles or ICPs and the changes to the go-to-market organization. Where do you feel the company is now versus where you started, and what are you most focused on to continue the momentum?

John Caplan, CEO, Payoneer: It’s great to be here, and thanks for asking the question. It’s an important one as we think about the growth momentum transformation underway at Payoneer. What we see is lots of opportunity in front of us. When I arrived at Payoneer, there had been a one-size-fits-all approach to our customers. You know, we do business in 190 countries and territories. We have 3,700 employees and contractors working together to serve the needs of cross-border businesses. When I arrived, there was not an approach that said, "These are our primary customers and these others are nice to have, but not the focus." We adopted a segment-specific approach. We identified goods exporters in China as being very important, and B2B services companies across the globe, significantly important opportunities for us, and larger customers more valuable to Payoneer than smaller.

Since becoming CEO, March 1, 2023, we’ve had compound annual revenue growth of 16%. Prior to that, it was low single-digits growth at Payoneer. Our revenue per customer is up 50%. We feel very good that sort of at the most macro view of the business, we’ve done what we said we’re going to do, we’ve executed very well, and we’ve proven we have strong product-market fit. At the same time, for folks that are newer to Payoneer’s story, you see that our customer balances have grown 29% since this transformation of the company began. That’s because not just that folks trust us and feel comfortable holding their funds in their Payoneer accounts, they’re using Payoneer for their international accounts receivable, selling on a marketplace, selling to other businesses, selling direct to consumers, and now increasingly using our accounts payable tool to manage all of their international expenses.

We’ve shared the last earnings that our Payoneer card is now 10% of all the usage of funds at Payoneer. It was 8% two years ago. What’s so exciting about the card is it’s not just higher take rate, which it is, and distributed across more companies’ employees, which it is, for travel, etc., or putting limits in place for managing employees. It actually demonstrates that Payoneer is not a toll booth on the money highway. People are choosing Payoneer because we can serve and solve complex business problems that they have, managing an international operation as a small business from day one. Our innovation has substantially accelerated. We announced last quarter the partnership we struck with Stripe for our checkout business. We took a product-market fit that we proved to ourselves that our customers, goods exporting customers in China particularly, wanted a checkout solution from us.

We got to a billion dollars in volume, partnered with the best-in-class solution at Stripe. That feels like a big step forward in innovation. We announced recently the collaboration with Citibank for treasury flows and their blockchain technology. This is us putting the rhetoric aside and just looking directly at real-world use cases of blockchain technology to serve our business. We have some early progress with AI in our customer support team that’s making nice headway. I would say on balance, very happy with the progress we’ve made in our transformation and hungry for more. This is a motivated team where we’re aligning our resources with our growth. We’re building our plans for 2026 and beyond, really about focusing on high-value customers in high-value geographies and high-value industries, and frankly, reducing our emphasis on everywhere for everyone and more about focus on the high value because we’ve promised profitable growth.

You and I have talked about this in the past. In 2024, we generated $14 million of core business EBITDA. That’s not including any of the interest revenue we made. In the first half of this year, $16 million of core business EBITDA. We have grown EBITDA in the first half of this year compared to last year. We are focused, delivering, optimistic, which would be how I’d say how we feel.

Unidentified speaker, Interviewer, Goldman: Great. I also wanted to give you a chance to comment on the macro environment. You reported second quarter earnings a few weeks ago. The second quarter felt like one of the longer three-month periods that I can remember. I think the highlight of the quarter was Payoneer reinstating guidance amid what’s been a volatile trade backdrop. What is your latest thinking on the trade environment and what adjustments have you and your customers made to accommodate that?

John Caplan, CEO, Payoneer: Yeah, so the pulling guidance was the prudent and responsible thing for us to do at the time. Reinstating it was equally prudent and responsible. The trade environment is dynamic, as we all know. What’s equally dynamic, or frankly even more dynamic, is the resilience and entrepreneurship of our customers. Our customers are proving again and again how focused they are on their own growth and how valuable Payoneer is to them. We are seeing our customers expand their distribution, not just China to the U.S., but China to Europe, Latin America to APAC and EMEA. I mentioned this when you and I chatted last about we do events across China where we help global marketplaces meet the highest quality exporters in China. We do them frankly around the world, but specifically in China. We had 15 of those kinds of events oversubscribed in the second quarter.

Our customers turn to Payoneer to fast-track their access to global demand. That’s, I think, really positive for us as a growth partner to our customers. I just saw in an email this morning before walking in, work we’re doing with Walmart similarly to help Walmart connect to the high-quality exporters across Europe. We are a business that marketplaces turn to to get access to high-quality sellers and sellers turn to to reach global demand. If we think about August, August results were really consistent with our Q2 guidance. I’m pleased with the results we’ve seen through the third quarter and feel good about reiterating the guidance that we did and feel good about the trajectory the firm is on right now.

Unidentified speaker, Interviewer, Goldman: That’s great. Switching over to the top of the funnel, could you talk through the changes you’ve made so far on go-to-market and what’s next? You hit on the focus on ICP over the last couple of years. How are you thinking about the need to add sales and marketing talent versus kind of doing more with what you have, which I think has been the primary approach as you’ve focused over the last couple of years? How do you think about geographies and verticals and where it could make sense to do that over time?

John Caplan, CEO, Payoneer: Let’s start with my impression when I arrived a couple of years ago. I was not satisfied with Payoneer’s go-to-market motion, did not think it was focused enough or that the yield per salesperson was strong enough. We made substantial changes to our go-to-market, as you mentioned. We focused on high ROI areas where we had unique product-market fit, strong brand, the right infrastructure, product-market fit, and focus. Since then, we’ve nearly 3x’d the revenue per salesperson than when I arrived. I think before you expand, you have to get good at your basics. We have gotten really good at the basics, and our cost per salesperson has been flat. In that context, we now can see what yield we expect from a salesperson in a geography.

Now we’re going a step further and looking at specific regions, specific industries, and identifying the, let’s call it sub-20 markets around the globe where Payoneer has a right to substantially win. As we move into the next chapter of our growth, focusing in key geographies with our salespeople, we have increased the percentage of our customers that have a named CSM. We have 50,000 or so 10K plus customers. They’re not all created equal. Some have more complex needs, and they need a named account manager who can really help them. I think that’s an important, maybe overlooked, dynamic of Payoneer’s business: how valuable our service offering is and the service, the human service to our tech-enabled product that helps our customers be successful. We will continue to invest in our tier one markets. We continue to drive our incentives with our card product.

The card being so valuable for the goods exporters who are buying advertising is increasingly valuable to the marketing services companies that are buying advertising on behalf of other firms. The partnerships, Stripe is just one example where we, and there will be more, where we see the opportunity to build an ecosystem around our customer acquisition engine and our value prop to accelerate our growth going forward.

Unidentified speaker, Interviewer, Goldman: Great. Maybe we can just go through a couple of the major parts of the business. I think it’s always helpful to remind people of some of the distinct businesses within Payoneer. I want to start with the payouts business. Marketplace payouts is the largest and most penetrated, most developed of Payoneer’s businesses. You’re the market leader. Can you talk about the drivers of growth for that segment and what your expectations are going forward?

John Caplan, CEO, Payoneer: Yeah, so you’re right. We are the market leader, and we’re proud of that. That is, we fought hard to win that, and we continue to hold that share. We aren’t the cheapest provider in the market, but we have the best product-market fit and I think really strong customer relationships. The first priority in terms of growing the marketplace business is we are focused on larger sellers, not smaller sellers. I think it’s important for people to understand that what matters in the marketplace business is not the number of sellers you have, it’s the quality and volume they do. It is very hard to enter a marketplace from scratch and win the buy box and capture volume. Others may be focused on spreading wide. We are really focused on high quality and volume, and that’s our emphasis there. The second is expanding the ecosystem.

We continue to work across social selling, innovative sort of marketplace design to help bring our traditional marketplace sellers into the next phase of marketplace growth. Going forward, we see strong growth, but it’ll be mid-single-digit type growth. It won’t be much more than that, I don’t think, as the consumer in the West sort of navigates the changing tariff landscape, the changing economy, the interest rate environment, and all the messaging. Right now, we are benefiting from motivated large sellers focused on selling more globally. The take rate has been largely flat in our marketplace business over the trailing three years. If you think about other payments companies where they see take rate erosion while they scale, and as you’ve seen in ours, we are doing just the opposite.

Unidentified speaker, Interviewer, Goldman: Yeah, that makes sense. The mid-single digits, you think about that as maintaining share within the e-com space. I know a lot of people think about the largest marketplace out there that may grow a little faster, but I know that there’s a range of marketplaces out there. There’s a range of growth rates. Some of the services platforms are a little lower. Mid-single digits is kind of what you view the market growth at.

John Caplan, CEO, Payoneer: Correct. You know, we saw it in Q2. Wayfair put up a really strong Q2, and we saw that in our Wayfair numbers. As consumers shift their behavior, they shift across different marketplaces, different price points.

Unidentified speaker, Interviewer, Goldman: Makes sense. Okay, switching gears to the B2B business. I think it’s helpful to go over just what separates this area from the core business. What is different about this from the payouts business? What are the problems that you’re solving for the customer base there? I have a more numerical follow-up.

John Caplan, CEO, Payoneer: Yeah, so if you think about it in the most basic way, if you’re a business process outsourcer in the Philippines, right, and you’ve got customers in Germany and Canada and the United States who use your call center to handle customer inquiries, you fly over to the United States, you go meet your customers and talk to them, convince them that you’ve got a great product. You use Payoneer to invoice. That’s a process that used to be done by a local bank, but you couldn’t hold multi-currencies in your local bank, and the cost and time to get paid was substantial. You get paid into your Payoneer account. In the Philippines, you have local employees, so you need to withdraw some of those funds into your local bank account in the Philippines to pay your local employees, pay your local rent.

You also have contractors across APAC that do overflow work, that go on business trips. You use Payoneer cards to hand to your employees to handle their travel, to add new customers, and you use Payoneer to pay your contractors. We really sit as the central nervous system of our customers’ cross-border activity. We’re solving something that local banks can’t do because they don’t offer the multi-currency account, can’t do because they don’t have the technical capability and don’t have the regulatory framework and don’t have the speed and cost dynamics. We really are a unique provider in the B2B space. It’s a trillion-dollar total addressable market, right? You and I have talked about this at length. It is a massive business opportunity. What we identified a couple of years ago was Payoneer has the assets and right to win in this space. We’ve done just that.

We’ve seen 37% revenue growth in the first half of this year in our B2B business. It’s $11 billion of our trailing 12 months, $80 billion or so. That is 30% of our core revenue. A business that was a nascent small business a couple of years ago now is the sort of coal-fired engine of our growth dynamics inside of, and I’m looking at my notes, our B2B business was 50% of our Q2 revenue growth.

Unidentified speaker, Interviewer, Goldman: Wow.

John Caplan, CEO, Payoneer: Like that is a demonstration of both product-market fit and a big opportunity. We are on a long march, though. This isn’t a flash in the pan. It’s all about quarter after quarter improving the product, which has higher take rates, which is more relevant in high take rate geographies, leveraging bespoke pricing by corridor, cross-selling our workforce management acquisition, adding the capability so 100% of B2B customers’ cross-border activity flow through their Payoneer account.

Unidentified speaker, Interviewer, Goldman: I just wanted to follow up and get in the weeds a little bit more on the Q2 numbers. B2B volumes were up 19%. Revenues were up 37%. I know we talked about a little bit of this on the call and afterwards, the drivers around the China B2B business versus kind of the rest of the world. Could you just maybe level set the outlook for both B2B volumes and B2B revenue and just where you’re expecting to see the most growth out of the B2B business?

John Caplan, CEO, Payoneer: Yeah, so the focus on the B2B business is primarily the rest of the world and the services area. We have the strongest product-market fit there, the least sort of complexity as it relates to, you know, managing the banks, the regulators, and all the sort of onboarding that’s required for cross-border B2B flows out of China. We’re working hard on those China flows because there’s a real opportunity. We are focused on the rest of the world as the primary sort of growth driver. We will have, and we’ve shared with folks, 25% revenue growth as really the second half target for our B2B business. It’ll be a mix of geographies. We’re not over-investing into China while we get the product to the place it needs to be. We’re moving up market, larger customers. There’s an interesting dynamic that folks in the U.S.

might not really understand, but many of our B2B customers are what we call multi-entity. They have a home market, I don’t know, Colombia, but also do business in Dubai. They also do business in other markets around the globe. They end up setting up entities around the world. Those multi-entity customers have the most sophisticated needs, and we have great retention. We’re very focused on identifying larger multi-entity cross-border B2B businesses. The partnerships we’ve built with resellers are starting to create some momentum and more effective identification of customers that are coming inbound to drive growth. We are super focused on that B2B services arena. See 25% growth is really solid coming off of 2024’s exceptional growth, and we’ll continue to drive it.

Unidentified speaker, Interviewer, Goldman: That’s great. Maybe we could talk about some of the recent partnerships. You mentioned Stripe for the checkout business. Maybe just touch on where do you see the most growth in the checkout business historically, and then how is the Stripe partnership going to kind of help you accelerate that growth?

John Caplan, CEO, Payoneer: Yeah, so it’s a really important, if our thesis, and our thesis is that, and it’s validated by the discussions we have with our customers and the net revenue retention of our best customers. The more of their AR they consolidate into one Payoneer account, the easier it is for them to run their businesses. The larger goods exporters, particularly those in China, but across the region, sell on marketplaces, they sell wholesale, and they also sell direct. We had, I think, a very solid test effectively with the product we launched. It took us very quickly to $1 billion of volume running through our owned and operated solution. Our ambition is greater than playing catch-up to Stripe, frankly. We decided, made the tough decision to sunset our own offering and replace it with the best-in-class offer. That is good economics for us.

It lets us extend that product to more customers, really validates that our account is that valuable to our customers that they want to aggregate all those flows into one place, regardless of whether it’s Payoneer, checkout tech, or Stripe tech. We own the customer relationship. If someone’s wondering, "Hey, why would you do that? Can’t Stripe take your customers?" Actually, in fact, no, those are Payoneer customers and well-organized relationship between Payoneer and Stripe. It’s a much better cost and yield dynamics over time for us. Now with this Stripe relationship, we have the potential. We have not said we’re ready yet to do it, but we have the potential to roll that out into more geographies. That would have taken a lot longer with our owned and operated solution.

On sort of every score, better for our customers, better for our P&L, you know, just opportunity in front of us. We’re going to drive that business forward.

Unidentified speaker, Interviewer, Goldman: No, it makes sense. Okay, the other major partnership this quarter was the relationship with Citibank. The theme of the summer has been Stablecoin summer. I know you recently announced the collaboration with Citibank to begin integrating blockchain infrastructure. I know it’s not technically a Stablecoin product, but maybe you could talk about that announcement. What does it bring to the table? What does it help Payoneer do better?

John Caplan, CEO, Payoneer: Yeah, I think the thing that’s, and you’ve had a chance to meet some of our folks in our Treasury team, and you know, we have a really exceptional group of people who are looking at driving the innovation there. Our relationship with Citibank is very solid. By using their blockchain technology, it lets us move money more quickly in more geographies with less sort of concern about daytime or weekend time, right? All of the practical applications of moving funds around the globe using Citibank’s blockchain tools will enable our Treasury department to move even faster, better speed, better automation, and more transparency. Those are the motivating reasons to extend the relationships that way. There’s no more cutoff times, which obviously is a benefit. It lets us optimize our funds in interest-bearing accounts.

I’m a strong believer that the 17% growth in balances we had in Q2 and the volume of funds our customers hold is misunderstood by investors, right? I think investors don’t appreciate the fact that we actually serve a critical function in the life of our customers’ financial operating journey. Moving their money around the world quickly with Citibank is a benefit. Seeing our balances continue to grow is something we’re proud of.

Unidentified speaker, Interviewer, Goldman: Yeah, I guess one follow-up on the Stablecoin topic, there’s been a lot of questions around Stablecoins and how they could be a disruptive force in cross-border payments for all companies in the ecosystem. You have a very high gross margin on payments-related revenue, like most kind of electronic cross-border companies do. Could you talk about the barriers to entry in your business, where you feel the value add is, and why Stablecoins are or aren’t a threat to the economics of the business longer term?

John Caplan, CEO, Payoneer: Yeah, awesome question. Stablecoin summer was exciting for all of us, right? Because the Genius Act now codified something to allow what was a tradable asset, and trading is fun, to be something where I live, which is in the practical use cases that entrepreneurs around the world need to do business and feed their families and grow their companies. Stablecoin is turbo for Payoneer, right? If you think about, or the express train, because it’s a real opportunity. If you think about going from tradable assets to assets that are used, if you’re an entrepreneur in Vietnam, you cannot buy a hammer with USDC today, right? Even if someone wants to pay you in USDC, you can’t convert it into your local fiat. The hardware store you go in to buy a hammer wouldn’t accept it if you could use it.

If you think about what we’ve built, it’s a global network of last-mile delivery and converting multiple currencies into local fiats so that they can be used. We think our unique assets, bank relationships, regulatory relationships, 2 million active customers, Walmart, Amazon, Airbnb, Etsy, Fiverr, Upwork, marketplace relationships enable us to actually be a really important part of the infrastructure that helps the Stablecoin community turn into the use by the commercial community.

Unidentified speaker, Interviewer, Goldman: Yeah, that makes sense. When you talk to your marketplace customers, what is their perception of the use of Stablecoins? As we think about the marketplace payouts business, we had Sophie on stage yesterday talking about working with marketplaces to leverage Stablecoins in payments context. What’s your thought on Stablecoin adoption in the payouts business?

John Caplan, CEO, Payoneer: Yeah, so I’ve had a chance over the summer to have a tour with a number of our payments teams inside America’s largest marketplaces and sit across the table from them and ask them. They say, "We have no idea. You know, we don’t know what this means. We’re curious to learn about this. We don’t want to be left behind, but we’re certainly not." I was with one big marketplace, we’ll call it a $100 billion market cap marketplace this summer, and they were bemoaning the size of their payments infrastructure team as single-digit tens of people. I explained, "We spend $600 million a year building payment infrastructure, so you don’t have to." They said, "Right." I think the potential exists, but the reality is it’s going to come through companies like Payoneer for it to actually get really adopted.

Unidentified speaker, Interviewer, Goldman: Yeah. Okay. Another development this year was that Payoneer became one of the handful of Western payments companies with a license to operate in mainland China. You closed on the acquisition there earlier this year. What do you see as the biggest benefits from that?

John Caplan, CEO, Payoneer: Yeah, it’s awesome. You know, Sophie Goldman, who was just there, she’s our General Counsel and leading this activity. We are one of three Western firms with the license. This is really important for Payoneer because China is a substantial market for us and a big growth opportunity for us. We shared when the tariff sort of, which feels like 100 years ago, but we shared when the tariff stuff began that 15% or so of our total revenue is China sellers selling to not to the United States. 20% is China to the U.S. We continue to see really nice growth of helping Chinese sellers sell all over the world. Specifically on the acquisition, it expands our total addressable market.

It lets us help bring funds CNY outbound out of China, which is, you know, we can all read the same articles in Bloomberg about the renminbi and how important that is to China. I think that’s not a today opportunity. It does feel like a good long-term opportunity. Then specific inside of Payoneer’s P&L in the near term, there’s cost synergies through transaction costs, right? Where we, instead of paying a third-party vendor to help us bring funds domestically and from Hong Kong into China, we’ll be able to use our own and operated entity. That will not have a big impact in the near term, but over time, as it takes more share, will let us do that.

We think this is super strategic for us, expands the total addressable market, cuts some OpEx, and positions us again with the regulatory moat around the business that is, we think, very valuable to shareholders.

Unidentified speaker, Interviewer, Goldman: Okay, I want to talk about the Payoneer card a little bit. I think, you know, I attended a customer conference that you guys hosted a while back, and it really struck me how much focus the card got from your customers. I think a lot of people in the U.S. markets, U.S. investors are so familiar with what have become fairly commonplace card offerings from a lot of fintechs here. I don’t think there’s a great understanding for how differentiated it is, particularly in the APAC region. Can you talk about, you know, what did it take for you to stand that up? What is so differentiated about it? What’s kind of the truce, you know, the problem that that card solves, particularly in the APAC region?

John Caplan, CEO, Payoneer: Yeah, so the value prop is really straightforward, which is, you know, operating in local currency off of your cross-border AR, saving on conversion fees, higher acceptance rates so your card doesn’t get declined, which we all know is a nightmare, and linking it directly to your Payoneer balance, which is, again, simplifying activity and providing limits for users. The CEO of a firm can provide the appropriate limits to their Head of Sales, their, you know, I think you get the point. In Q2 of 2025, we did $1.5 billion of usage on the Payoneer card, which is up 25% year over year, 2.8% yield, and 10%, as I mentioned a moment ago, of our total usage. The net revenue retention of our customers who are card-carrying customers is exceptional, and they stay longer, use more products, are more valuable, and our ARPU for those customers are really strong.

Our biggest users today are China goods exporters by far, but we’re seeing very strong growth in Latin American B2B services firms. We’ve talked in the past about marketing agencies in the Middle East who are using our virtual cards to consolidate ad spend for their customers. We’re excited about the card, and you’ll hear us begin to focus even more on it, right? As we focus on key geographies, I talked about 20 or fewer key geographies, focus on larger customers that, so absolute count of customers becomes less meaningful, right? It’s volume per account, ARPU per account, but the absolute count was really useful when I was beginning the remake of Payoneer and less useful today as we’ve got the machines starting to really hum and cook in the right direction.

Unidentified speaker, Interviewer, Goldman: Okay, and then another one, another acquisition that we haven’t talked about today yet is the payroll acquisition. It didn’t immediately, I didn’t immediately understand the motivation that I think when you described it about how difficult cross-border payroll is for a lot of your customers, you know, I sort of got it, but maybe you could talk a little bit about the motivation and just how you’re feeling about kind of cross-sell and the progress so far.

John Caplan, CEO, Payoneer: At the most basic, Payoneer solves knowing who people are and paying them. If you’re a business owner, that KYC gave us permission with banks and regulators to go do business and moving money around the world, obviously critically important. If you look at the P&L of a business owner globally who has employees around the world, the compliance complexity of managing HR is something American firms, I think, don’t understand. If you have employees in a dozen countries, you have to comply with local employment law all over the world. That is burdensome, taxes are complex. We acquired the workforce management business a year ago, August. It is really strong growth, and we’re proud of it. It’s small absolute dollars, but strong growth, both of new customers and cross-sell. We’re selling to a different customer, right? The Payoneer value prop in payments was finance.

The value prop in human capital is HR and finance. We’re learning and have been learning that the difference in that dynamic. 25% of our one new customer left another workforce management platform.

Unidentified speaker, Interviewer, Goldman: Wow.

John Caplan, CEO, Payoneer: There is a lot of sort of buzz in the U.S., certainly about Deel or others that get a lot of sort of noise. In sort of on the playing field, Payoneer is doing a very effective job at building this new opportunity, which will be, I think, a building block of the next sort of phase of our growth.

Unidentified speaker, Interviewer, Goldman: That’s great. Maybe we can talk through a little bit more of some financial metrics. Payoneer has strong mid-20% margins. There’s a degree of sensitivity to interest rates in the model, just given the significance of the interest income you generate from customer funds. How are you thinking about the outlook for margins and the ability to hold margins flat with rate cuts potentially closer than they have?

John Caplan, CEO, Payoneer: Yeah, I think this is, again, for the people who are paying attention and scratching into the P&L, you’ll see approximately $40 million headwind in interest revenue, all of it made up for in core business EBITDA growth. That’s us unlocking leverage in our business. We are very focused at continuing to drive the core business profitability. Holding adjusted EBITDA margins flat at 25% when we face that interest rate headwind, we think it should be viewed really positively by the market because it’s evidence of the strength and health of our business. I mentioned a moment ago in the first half of 2025, $16 million of core EBITDA versus a total of $14 million for all of last year. We are focused on profitable growth, not looking for empty calories.

You’ll see us even more focused on the adjusted EBITDA side of the business as we continue to unlock more leverage in the model.

Unidentified speaker, Interviewer, Goldman: Yeah, no, I’d be remiss if I didn’t mention all the work Bea has done on the hedging side as well. I’ll start to limit that as well. In the last couple of minutes here, I just wanted to hit on capital allocation. You know, Payoneer is highly profitable, highly cash generative. You have been actively repurchasing shares. You’ve also done some tuck-in M&A. What’s top of mind from the capital allocation front?

John Caplan, CEO, Payoneer: Yeah, we have really strong cash generation every month. We’re an envy of others presenting at this conference. If you look at the monthly free cash flow we generate, it’s great. We have deployed the excess cash towards inorganic and organic investments. We’ve done a few acquisitions, over $250 million of buybacks, and the warrant redemption since 2023. We still have $500 million of cash and no debts. With that balance sheet and that free cash flow we’re generating, the board authorized $300 million of additional buyback, which we continue because we believe there’s value in Payoneer shares. We are, in fact, looking into the market at consolidation opportunities where we see businesses that either bring us additional verticals to add or capabilities that we can cross-sell to our existing customer base. We think the market, we’re in a strong position. We’ve delivered really nicely.

Shareholders can have confidence in our execution, and we’re going to be more aggressive.

Unidentified speaker, Interviewer, Goldman: That’s great. John, I think we’ll leave it there, but thank you so much for taking the time today. Really appreciate the conversation, and thanks for supporting the Goldman Communicopia conference.

John Caplan, CEO, Payoneer: Thanks for having me. Thanks, everybody.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.