SOURCE: Payoneer

August 05, 2008 13:30 ET

Payoneer Receives $8 Million Series B Investment Led by Carmel Ventures

Will Expand Its Prepaid Card Services Enabling Corporations to Transfer Payments to Their Service Providers

NEW YORK, NY--(Marketwire - August 5, 2008) - Payoneer, Inc., a provider of co-branded reloadable prepaid MasterCard® cards, announced today that it received an $8 million Series B investment led by Carmel Ventures. Additional investors in the round include Greylock Partners, Crossbar Capital, Zohar Gilon, and others. Funds will be used to accelerate the expansion of Payoneer's payment service offerings and to enhance its technology with advanced compliance tools that bring a new standard of confidence to international payments. Payoneer's offerings simplify the process of making international payments by allowing corporations to pay authorized payees worldwide using prepaid MasterCard cards.

As part of the funding, Payoneer also announced that it has appointed Avi Zeevi, general partner and co-founder of Carmel Ventures, to Payoneer's board of directors.

International payments are cumbersome and costly, and as more companies do business with authorized individuals and companies overseas, paying them efficiently is a growing business problem. Since 2005, Payoneer has built an international payments infrastructure that lets companies make recurring mass payments to authorized payees on reloadable prepaid MasterCard cards. Authorized payees gain immediate access to their money in their local currency -- or, if they choose, in US dollars -- while avoiding the hassles associated with lost or stolen checks, hold times and fees, and the unavailability of online payment methods in certain countries.

Using Payoneer's services, corporations have lowered their cost-per-payment to authorized overseas payees by up to 75 percent, and have enhanced service provider retention rates due to the payment method. Payoneer has placed tens of thousands of prepaid cards into circulation for hundreds of companies.

"The fast growing global 'internet economy' is creating a new service providers' echo system which drives many more corporations to seek better payment solutions," said Avi Zeevi, general partner and co-founder of Carmel Ventures. "Investing in Payoneer plays to Carmel's strengths and expertise in the Financial Technology space. We are impressed with Payoneer's founding and executive team and we look forward to join them and the existing investors in supporting Payoneer to become a leader in this fast growing market."

"Traditional payment methods are far less desirable to Internet-savvy companies, particularly when they must pay increasing numbers of people outside the US," said Moshe Mor, partner at Greylock Partners. "We see tremendous opportunity for innovation in this space, and are very pleased with the progress that Payoneer has made to date."

"Good, honest individuals still have to jump through hoops in order to get paid when they happen to live outside the US and provide services to US companies," said Yuval Tal, CEO of Payoneer. "We will dedicate much of the additional VC funding to developing technology that will provide better electronic ID systems than required by current Know Your Customer (KYC) regulations in the US -- and to further refine our simple to use, yet highly compliant international payments platform."

About Carmel Ventures

With over $600 million currently under management, several successful exits, and a growing portfolio of promising start-ups, Carmel is among Israel's top-tier venture capital funds. Carmel's investments are focused primarily on early stage companies in the fields of Software, Communications, Internet, Media, Semiconductors, and Consumer Electronics. Founded in 2000 by pioneers and leaders of the Israeli high tech industry, Carmel provides significant capital and active, hands-on support through the growth cycle of its portfolio companies and is recognized as a true company building fund in Israel. Carmel, headquartered in Herzliya, Israel enjoys a worldwide network of industry, strategic and investment resources. Carmel is an affiliate of the Viola Partners Group, a leading innovative private equity investment group with over $1.5B under management focused on technology-based investment opportunities in Israel. For more information, please visit www.carmelventures.com.

About Greylock Partners

Founded in 1965, Greylock Partners is one of the world's leading venture capital firms. Over the past 43 years, Greylock has funded and helped build several hundred successful companies. The Greylock approach uniquely puts the entrepreneur first, with Greylock working as an "invited guest" in a highly supportive yet consultative way to help entrepreneurs build market-leading companies. Companies Greylock has funded include Ascend Communications, CheckFree, Constant Contact, Continental Cable, Decru, Data Domain, Digg, DoubleClick, Facebook, Internet Security Systems, Ikanos, Legato, Linked In, Millennium Pharmaceuticals, Openwave, Red Hat, RightNow Technologies, Success Factors, Tellabs, Trilogy and Wily Technology. Greylock's offices are located in Silicon Valley, the Boston area, Israel and India. For more information, please visit www.greylock.com.

About Payoneer, Inc.

Founded in 2005, Payoneer Inc. provides corporate payout solutions that lets companies pay authorized payees worldwide using prepaid MasterCard® cards. The company focuses on Internet-centric companies of any size who need an efficient, cost-effective means of paying contractors freelancers, and/or employees worldwide. Payoneer has hundreds of thousands of Payoneer cards in circulation. Based in New York, Payoneer maintains its R&D center in Tel Aviv, and is privately held with funding from Carmel Ventures, Greylock Partners and Crossbar Capital.For more information, visit http://www.payoneer.com.

MasterCard is a registered trademark of MasterCard International Incorporated. The Payoneer Prepaid MasterCard is issued by First Bank of Delaware (Member FDIC), pursuant to a license from MasterCard International Incorporated.

Contact Information

  • Press Contacts
    Payoneer
    Yuval Tal
    CEO
    Email Contact

    Mary Kae Marinac - PR Representative
    Email Contact
    978-685-3136

    Carmel Ventures
    Hila Shitrit Nissim
    Marketing and IR Associate
    Email Contact
    +972-9-9720421