Possibility of Public Listings for TransferWise and Payoneer?
The cross-border payments landscape may undergo significant changes in 2021, as two major players in the industry, TransferWise and Payoneer, are considering public listings. Both companies are expanding their product offerings, with Payoneer entering the lending and white label market, and TransferWise aiming to grow revenue and improve operating margins.
TransferWise, the fintech unicorn known for its bank-bashing marketing techniques, may need to tone down its approach as a public company. The company has stated that an Initial Public Offering (IPO) is its end goal, and it is reportedly in talks to enter the US stock market via a Special Purpose Acquisition Company (SPAC).
Payoneer, on the other hand, has historically kept its financial details private. However, it is expanding its offerings to include lending and white labels, which could benefit from the trust of a public company. The company's growth is tied to the growth of global e-commerce and digital services.
TransferWise and Payoneer will face competition from established players in the public markets, such as Western Union, PayPal, HSBC, Citi, and Santander (owner of PagoFX). The impact of their potential listings on the competitive landscape is uncertain, but the pricing structures of both companies are not specified in the article.
In the cross-border payments industry, the pricing comparison between banks and non-banks is not addressed. However, it is worth noting that fintech unicorns like TransferWise (now Wise) and Payoneer typically charge low but variable fees based on transfer amount, currency, and destination. These fees are often lower and more transparent than traditional banks before the regulatory change in 2021, when all banks in the Eurozone were required to offer real-time (instant) credit transfers free of charge for sending and receiving, making instant payments cost the same as regular bank transfers, which are usually free.
Initiatives such as TransferWise for Banks could also benefit from the backing of a public company. Payoneer, if it lists on the stock market, will face public scrutiny. Both companies' new product lines could potentially attract more customers and investors, but the exact impact on the industry remains to be seen.
As the cross-border payments industry evolves, it is clear that competition will intensify, and innovative solutions will be key to staying ahead. With TransferWise and Payoneer entering the public market, it will be interesting to see how they navigate the challenges and opportunities that lie ahead.
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