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Payoneer partners with Coupang

Payoneer CEO Scott Galit details the advantages of Payoneer's new partnership with Coupang and how it will help grow business in Asian markets.

Video transcript

ADAM SHAPIRO: Let's shift gears and change the discussion to a new partnership that's going to benefit not only people in the United States, but people in South Korea. Payoneer, located here in the States, is a payment processing firm, e-trade, that just announced a deal with Coupang, which is a very large e-commerce site in South Korea. I believe 4% of e-commerce sales worldwide take place in South Korea by some of the data we got. But don't take it from me. Let's bring in the CEO from Payoneer, Scott Galit. Did I get that right? Is it 4% of e-commerce takes place in South Korea?

SCOTT GALIT: It's amazing. It's actually the fourth largest e-commerce market in the world. South Korea has been-- it's over $100 billion a year of volume online there. It's grown incredibly quickly. And Coupang is the clear market leader out there.

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SEANA SMITH: So, Scott, when you talk about this partnership, obviously, that's a huge reason as to why you would want to reach this partnership with Coupang. And going through some of the other numbers, they have more than 17 million customers. They generated over $15 billion in the past 12 months. With a partnership like this, I guess, what do you think that growth could potentially look like going forward?

SCOTT GALIT: Yeah, so they're an incredible company. And we're really proud to work with them. And we have this shared notion of creating opportunities for small businesses around the world, really making it easier for small businesses to participate in this growth of digital commerce everywhere in the world. And so by working together with Coupang, what we're doing is we're going to help small businesses in markets like the United States, in greater China, in Europe, and in other markets, now have opportunities to more easily grow into this really, really vibrant e-commerce market in Korea.

With our green channel program, we're partnering together to really facilitate an easy onboarding for quality merchants to give them access to the Coupang platform and enable them to get into market more quickly and easily. And we're really focused together on helping to really just grow this entire ecosystem of digital commerce, enabling small businesses to actually access new markets more quickly, and create a broader access to merchandise for consumers, giving them more choice, better selection, better price, for their e-commerce shopping.

ADAM SHAPIRO: So, Scott, we should point out, too, that Payoneer is traded publicly on NASDAQ. And just out of curiosity, obviously, there's growth potential here for your shareholders. If I'm a small business person, can you walk us through the steps? Say, I make some kind of cookies that can last a month or however long transit takes. And I want to scale up, but I want to start selling these things or at least have a market access to South Korea. How do you come in to help?

SCOTT GALIT: Yeah, so we work with millions of small businesses all over the world. And actually, one of the points that you raised, what's amazing now is the ability to get smaller quantities of goods across longer distances faster and cheaper than ever before, has really been a revolution for digital commerce, in particular, for small businesses. And companies like Coupang have invested tremendously in their local logistics and delivery infrastructure to get goods into the hands of consumers really quickly.

So what customers-- small businesses can get in touch with Payoneer. Again, we work with millions of small businesses. We get hundreds of thousands of new small business applications every month from all over the world. And what Payoneer can do is we can help connect you to the markets around the world, the partners through which you can sell and opportunities to sell into new markets and grow your business.

And so, we have teams of experts that are here, really facilitating that growth, that kind of onramp to the global digital economy for small businesses that are looking to grow, in particular, across borders. And so that's something that we really focus on. We've built our whole business helping small businesses around the world grow their international business. And it's really something--

ADAM SHAPIRO: Does that include--

SCOTT GALIT: --that we're very passionate about.

ADAM SHAPIRO: Forgive my ignorance. I have not run a business, and God bless the men and women who do. But if I were to come to you, I mean, I don't want to have to deal with currency exchange. Is that what you're doing, or is it more in real-- you know, for a Luddite, what is it you provide me as the small business? Because I still got to make a buck at the end of the day.

SCOTT GALIT: Yeah, absolutely. Payoneer, we offer you a global multicurrency account that offers a wide range of services beyond that so you can get paid immediately in real-time from your trading partners around the world, whether it be Coupang in Korea, Bukalapak in Indonesia, eBay in different markets, or through your own platform that you're selling directly to consumers. So we get all of those payments in those currencies. They're all integrated into your global multicurrency Payoneer account.

And then we give you a whole bunch of tools that you can use. You can pay your suppliers through the platform. You can access working capital. You can use a Mastercard, commercial card, to actually make purchases. There's a whole range of tools we provide really optimized for small businesses, giving you sophisticated tools to simplify all that complexity that you were just talking about. We really make it easy for a business to become a global business. And we eliminate all that complexity of currencies, countries, challenges around taxes, things like that around the world.

SEANA SMITH: Scott, people compare Coupang to-- they say it's the Amazon of South Korea. And I bring this up because small businesses have criticized-- or third party sellers, I should say, have criticized Amazon just in terms of their treatment, what they think is fair and what they don't think is fair. Since you talk to these third party sellers, these small businesses all the time, are they looking to diversify their offerings? Or are they looking to other outlets and not just have everything stacked into Amazon?

SCOTT GALIT: We very much see small businesses. And look, as you touched on, right, they want to grow. They want to control their destiny. They see great opportunities with Amazon, but they also see great opportunities in other markets, in other channels. They want to build their own brands. Not surprisingly, you're seeing big trends with platforms like Shopify and Wix and other big e-commerce and others that are all focused on offering website building tools because merchants, small businesses are really looking to grow their own online presence, grow their direct-to-consumer capabilities.

And so, we actually have launched some new tools for merchants like that. We launched Payoneer checkout in Asia, again, to help small businesses, in that case, selling directly to consumers through our website. So you're absolutely right. Small businesses are looking for more channels, looking for more ways to access consumers, and looking for more ways to interact with and actually build and nurture those relationships directly with those consumers. So those are big trends--

ADAM SHAPIRO: We look forward--

SCOTT GALIT: Yeah.

ADAM SHAPIRO: Then we look forward to having you come back to update us because as I said about four minutes ago, the potential growth for your shareholders, you had me at 4% of global e-commerce sales in South Korea. So congratulations on the deal. And I think a lot of small business people watching, I mean, the headaches that you remove from the currency and the tax issues is certainly something for them to check out. So Scott Galit, Payoneer CEO, again, we look forward to an update on how this is working out for everybody in the near future.