Payoneer receives regulatory approval for its acquisition of a licensed China-based payment service provider

Rhea-AI Summary

Payoneer (NASDAQ: PAYO) has secured regulatory approvals in China for its planned acquisition of a licensed China-based payment service provider. The financial technology company, which focuses on empowering small and medium-sized businesses (SMBs) for global transactions and growth, expects to complete the transaction in the first half of 2025, subject to standard closing conditions.

Positive

• Obtained regulatory approval in China for strategic acquisition
• Expansion into Chinese market through licensed payment provider
• Potential enhancement of payment services capabilities in Asia

Negative

• Extended timeline until H1 2025 for deal completion
• Transaction still subject to closing conditions

Insights

Financial Services Analyst

The regulatory green light for Payoneer's acquisition in China marks a pivotal strategic achievement that could significantly reshape the company's competitive position in Asia. Securing regulatory approval in China's tightly controlled financial services sector is notably challenging, particularly for foreign payment companies, making this a substantial milestone for Payoneer's expansion strategy.

The acquisition of a licensed Chinese payment service provider offers three key strategic advantages:

• Direct market access without reliance on local partnerships, potentially reducing operational costs and improving service delivery
• Enhanced ability to process domestic Chinese payments, opening up a massive SMB market previously difficult to serve efficiently
• Improved competitive positioning against both global payment providers and local Chinese fintech giants

The expected closing in H1 2025 suggests a well-structured integration timeline, though careful execution will be important given China's complex regulatory environment and unique market dynamics. The acquisition positions Payoneer to capture a larger share of China's cross-border payment flows, particularly in the rapidly growing e-commerce sector where Chinese SMBs increasingly seek global reach.

From an operational perspective, having a licensed entity in China could streamline payment processes, reduce transaction friction, and potentially improve margins by eliminating certain intermediary costs. However, success will largely depend on Payoneer's ability to navigate local compliance requirements and effectively integrate the acquired entity's operations while maintaining service quality.

NEW YORK--(BUSINESS WIRE)-- Payoneer (NASDAQ: PAYO), the financial technology company empowering the world’s small and medium-sized businesses (SMBs) to transact, do business, and grow globally, today announced that it has received the regulatory approvals in China required to complete its previously announced acquisition of a licensed China-based payment service provider. The transaction is expected to close in the first half of 2025, subject to customary closing conditions.

About Payoneer

Payoneer is the financial technology company empowering the world’s small and medium-sized businesses to transact, do business, and grow globally. Payoneer was founded in 2005 with the belief that talent is equally distributed, but opportunity is not. It is our mission to enable any entrepreneur and business anywhere to participate and succeed in an increasingly digital global economy. Since our founding, we have built a global financial stack that removes barriers and simplifies cross-border commerce. We make it easier for millions of SMBs, particularly in emerging markets, to connect to the global economy, pay and get paid, manage their funds across multiple currencies, and grow their businesses.

Forward-Looking Statements

This press release includes, and oral statements made from time to time by representatives of Payoneer, may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Payoneer’s future financial or operating performance. For example, statements on the expected closing of the transaction, and projections of future revenue, transaction cost and adjusted EBITDA, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “plan,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Payoneer and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) changes in applicable laws or regulations; (2) the possibility that Payoneer may be adversely affected by geopolitical events and conflicts, such as Israel’s ongoing conflicts in the Middle East, and other economic, business and/or competitive factors; (3) changes in the assumptions underlying our financial estimates; (4) the outcome of any known and/or unknown legal or regulatory proceedings; and (5) other risks and uncertainties set forth in Payoneer’s Annual Report on Form 10-K for the period ended December 31, 2023 and future reports that Payoneer may file with the SEC from time to time. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Payoneer does not undertake any duty to update these forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250213943003/en/

Investor Contact:

Caius Slater

investor@payoneer.com



Media Contact:

Alison Dahlman

PR@payoneer.com

Source: Payoneer

FAQ

When will Payoneer (PAYO) complete its acquisition of the Chinese payment provider?

Payoneer expects to complete the acquisition in the first half of 2025, subject to customary closing conditions.

What regulatory approvals has Payoneer (PAYO) received for its Chinese acquisition?

Payoneer has received the necessary regulatory approvals in China required to complete its acquisition of a licensed China-based payment service provider.

What is the strategic importance of PAYO's Chinese payment provider acquisition?

The acquisition will enable Payoneer to expand its presence in the Chinese market and enhance its payment services capabilities for SMBs conducting global business.

What conditions remain for Payoneer (PAYO) to close the Chinese acquisition?

While regulatory approvals have been secured, the transaction remains subject to customary closing conditions before completion in H1 2025.