Israeli fintech powerhouse Payoneer announced on Tuesday that it is collaborating with eBay to enable sellers in select countries to get paid for their sales on eBay’s core marketplace.
Payoneer announced three months ago that it has entered into a definitive agreement with Nasdaq listed SPAC FTAC Olympus Acquisition Corp (FTOC), with the merged company to begin trading at an implied estimated enterprise value of approximately $3.3 billion. The transaction is expected to close in the second quarter of 2021, subject to satisfaction of customary closing conditions.
eBay has teamed up with Payoneer as part of its mission to modernize its marketplace, removing complexities and creating a more streamlined payment experience for sellers around the world. With the help of Payoneer, eBay sellers will benefit from faster access to funds, greater flexibility managing multi-currency payments and expanded reach by enabling sellers to list on multiple international eBay sites.
Starting from last month, Payoneer has managed payouts for eBay sellers from Greater China as eBay expands its management of payments around the globe. eBay and Payoneer intend to expand the service to additional countries later in the year.
For Payoneer, this agreement comes on the heels of its announcement that it will go public later this year through a business combination with a special purpose acquisition company. The wave of digitization that has accelerated during the pandemic has further highlighted the importance of seamless global commerce, as more buyers and sellers transact across borders. Payoneer processed $44.4 billion in volume in 2020, a 53% increase from 2019.
Payoneer currently holds $100 million in its balance and FTOC has raised $750 million for the merger, including commitments for $300 million in PIPE from an investor group. An estimated $450 million will be used to purchase secondary options from existing shareholders, managers, and employees. Roughly $100 million will be used by the company for various expenses and the rest, roughly $500 million, will be invested in its operations.
“Managing payments on our platform is a key component to enhancing the eBay experience for our customers,” said Alyssa Cutright, Vice President of Global Payments at eBay. “We’re excited to be partnering with Payoneer at a time of such growth for both our companies. Together, we will build on the momentum that ecommerce has seen in the past year, helping sellers transact with customers across borders with flexibility and security, all on a simple, modern platform.”