TechCrunch recently covered Payoneer’s latest capital raise. The product looks rather useful for paying developers, especially offshore (and has other good features / applications), but it was the pricing I found most intriguing. Card activation is $9.95 with a monthly account maintenace fee of $3.00. Given it runs over the Visa / Mastercard rails, this looks like a great “payroll” solution especially compared to dealing with banks. It’s $2.15 for an ATM withdrawal overseas, but hey that’s about what it costs to use an ATM if you go out of network in the US. Presumably it also works through point-of-sale since it’s MasterCard branded, so that’s pretty good.
But let’s look at fees to the sender. That’s where it gets intriguing.
Holy Panorama Batman, 3.5% for Visa and Mastercard and it still takes 1 to 2 days? This isn’t looking so hot anymore. But wait, it’s only $2 for ACH after the first load? That’s really cheap even if the recipient needs to wait 4 to 7 business days. You can schedule around that. And cash deposit (did you say cash deposit?) is only $3.95 for 2 business days. The same amount of time as Mastercard? Wow. Both of those options are very competitive with standard reloadable cards in the U.S.
This looks like a nice payments hack from the Payoneer team.