Saving you money
In Episode 33, we interview Dorine Klapholz from Payoneer to show how you can save on foreign currency transaction costs when selling internationally from your ecommerce store.
➤ Show opening.
➤ Overview of Payoneer and what Payoneer does;
➤ Discussion of the challenges that sellers face when selling internationally;
➤ Discussion of why should customers use Payoneer instead of simply using Amazon or other payment processors to facilitate foreign currency payments;
➤ Overview of the platforms Payoneer works with;
➤ Explanation of whether Payoneer is available worldwide;
➤ Discussion of how are sellers able to access/spend their money;
➤ Explanation of what denominated currency accounts can customers get;
➤ Sign up through my Payoneer affiliate link and we both get $50* when you sign up today.
➤ Sign up through my Payoneer affiliate link and we both get $50* when you sign up today.
David De Souza: Today I'm here with Doreen from Payoneer. Today we're going to discuss a big challenge eCommerce sellers experience when growing their business internationally, namely payments and dealing with foreign currency. I'm really pumped to bring this episode to you guys as it can seriously save you a lot of time and a lot of money. Welcome Doreen.
Doreen: Thanks for having me, David.
David De Souza: Thanks for coming on the show. Before we dive in, why don't you tell us a little bit about Payoneer and what Payoneer does?
Doreen: Sure. Payoneer is a leader in facilitating cross border payments with 12 offices worldwide and over a thousand employees, payoneer empowers global commerce by enabling companies such as Amazon, Airbnb, Upwork to distribute payments to over four million professionals across the globe. As well, Payoneer is regulated and compliance in many countries and due to our really wide global footprint, we offer support 24 seven in over 35 languages.
David De Souza: That's awesome. I want to even just highlight there, I mean that's great to see that you guys work with big companies and first off, sellers shouldn't be worried about using Payoneer and you're a credible organization.
Doreen: Exactly. Yep.
David De Souza: Let's dive in and why don't you tell us a little bit about the common challenges that sellers face when selling internationally?
Doreen: Sellers face several very significant challenges when selling internationally. Firstly, localization. When selling into new markets, sellers need to translate their listings and do a lot of research to understand which products sell best in each markets in order to achieve success. Secondly, logistics, obviously sellers need to find a reliable logistics company that is willing to ship internationally to fulfillment centers or directly to shoppers at a sustainable cost. Thirdly, we have compliance. When sellers reach a certain threshold in their sales volume, they're required to comply with local tax authority requirements, whether this be sales tax in the U.S. or VAT in Europe. And lastly, and the reason why we're here today, we have payments, which is a really big challenge for sellers. Sellers need to find a provider who can handle incoming payments from marketplaces, outgoing payments to suppliers and service providers, often across multiple currencies and platforms. This is where Payoneer comes in.
David De Souza: Yeah, no, I mean it's one of the reasons why I wanted to have you guys on the show and I can't stress it. Something that may be a lot of people don't think about using services like Payoneer can actually save you so much money. It's ridiculous. Especially if you're cashing out regularly. Want to really highlight that to my listeners. But Doreen, I mean tell us in your words, why should customers use Payoneer instead of simply using Amazon or other payment processes to facilitate foreign currency payments?
Doreen: That's a great question, David. Payoneer offers a complete end to end solution for online sellers worldwide. Sellers can both receive payments and make payments in multiple currencies. For instance, sellers can connect their Payoneer account to, let's say Amazon, receive their earnings and then use these funds to pay out their suppliers, logistics companies and VAT obligations all from one account, which is super, super easy and efficient and as you said, very cost effective. As far as currency exchange rates go, Payoneer offers competitive rates with full transparency in regards to fees. Currency exchange fees are only charged when withdrawing funds from Payoneer to a local bank account in another currencies. Now it's also important to mention that as your sales volume increases on these different marketplaces, we reduce your exchange fee.
David De Souza: Yeah, I mean, I seriously was blown away when I first started selling and realized just how much could be saved for literally pretty much doing nothing more. I know I've said it before, but I really want to make it abundantly clear that you can say both time and money, but let's move on and Doreen, tell us a little bit more about the platforms that Payoneer does work with.
Doreen: Sure. Payoneer has a network of over 3000 partners including global e-commerce marketplaces like Amazon and Rakuten. But we also serve professionals and freelancers and work with marketplaces such as Upwork, Fiverr, and many more of the well known marketplaces that you've heard of.
David De Souza: Just to clarify, do you only work with companies, individuals? How does that work?
Doreen: We get that question a lot. Payoneer serves a variety of companies and professionals from many different fields. It's really important to highlight that Payoneer services are directed at receiving and sending business-related funds and is not a personal e-wallet.
David De Souza: Okay. Does that mean that you need to be a company or how does that tend to work? Can sole traders, for example, use Payoneer?
Doreen: Sure. You don't have to be a company, but you have to use Payoneer for a business related payment transactions. You can sign up as an individual or a company.
David De Souza: Okay, perfect. I think that's a crucial distinction to make. How can Payoneer serve sellers selling on platforms such as Amazon or Walmart?
Doreen: Payoneer offers its users with virtual collection accounts in several different currencies. These accounts serve as sort of a virtual bank account. For instance, sellers may get access to a U.S. Dollars collection account, which they can provide as their local USD account in Amazon seller central. And this is far simpler than trying to open a physical bank account in the U.S.
David De Souza: Would it be fair to say that Payoneer available worldwide?
Doreen: Yes. Payoneer is available in over 200 countries and territories.
David De Souza: Okay, cool. I guess one of the big ones is how exactly are sellers able to access and spend their money?
Doreen: Yeah, that's definitely a big one. There are a few different ways in which Payoneer users can access their money. Once payments are received into a user's Payoneer account, the user can pay another Payoneer user for free. For instance, whether it to be a logistics company, a VAT compliance company, an optimization software that the seller is using. If that company has a Payoneer account, the transaction is free. The user can also pay the tax authorities for free. We spoke about to the big challenge of compliance, so this really helps sellers kind of solve this problem in some senses. When it comes to the payment aspect, the user can withdraw funds to their local bank account in their local currency and apply for a Payoneer MasterCard and use the funds in store, online or at ATMs.
David De Souza: Okay, just wanted to touch on two of those points because I know a lot of my users who say are based in the U.S. and want to maybe pay HMRC in the UK, their tax obligation or vice versa. Is that something that Payoneer can help sellers from either side of the pond pay their tax obligations then?
Doreen: Sure. This is something that we offer. We do have a VAT product which is pretty self-serve and it's free. The seller will need to work with some sort of a VAT compliance company to register and file, but we can always help with the payment, so we can help the seller pay directly to the HMRC from their Payoneer account for free.
David De Souza: Okay. The other issue or the other aspect of your product that I wanted to highlight, because I personally think this is really cool and solves a multitude of different issues. Tell us a little bit more about the Payoneer MasterCard. Is that just a standard MasterCard that you can use anywhere in the world?
Doreen: Yep. It's just a standard MasterCard.
David De Souza: Okay, perfect. Tell us a little bit more about the denominated currency accounts that customers can get.
Doreen: Yes, so we're continually growing the currencies that are available, but currently we have, for eligible users, we have collection accounts in U.S. dollars, British pounds, euros, Japanese yen, Chinese yuan and Canadian dollars, and soon we will have Australian dollars as well.
David De Souza: Oh, awesome. Then I guess that ties in perfectly with the launch of Amazon in Australia.
David De Souza: Tell us more about how sellers can get started and a little bit about the application process. What would be the easiest way for them to get on top of that?
Doreen: Sure. David has, you have all the information, you have a link, your listeners can sign up through this link. It's completely free to sign up and it takes around five to 10 minutes. There are only four steps in the signup process and once you sign up and start using our services, you can actually receive a bonus of $50. Because you're all coming through David and we work really closely with David, we obviously will provide you with the best service possible. We will make sure that we provide you with lower [inaudible] fees if needed. And that's all. It's very easy.
David De Souza: Yeah, I personally use Payoneer and I think it's awesome. But guys, you can get $50. I highly recommend you to try it out. It is a great service and even for things like paying your tax obligations, the MasterCard and the better exchange rates, cannot recommend it enough. Now Doreen, I really want to thank you for coming on the show today. I know it actually has been a short, sharp and punchy podcast, but this for me has literally been one of the aspects in my business that has gone ahead and saved me thousands of thousands of pounds just because it's something that you don't even think about. I can't stress it enough. It's like when you go traveling overseas. People and banks don't really tell you about the foreign currency exchange rates, and Payoneer is doing a great service for eCommerce sellers and for that reason, I want to thank you so much for your time. It's been a pleasure and a big thank you to my listeners. If you found this useful, please, please, please leave me a review on iTunes.