Going Global: How Fintech Deals with Challenges and Opportunities


Recently Adotas caught up with Scott Galit is the CEO of Payoneer (pictured left), to discuss how fintech can help affiliates, publishers and advertisers master the challenges of the global online marketplace.

Q: What are the global opportunities for affiliates, publishers and advertisers? And what role do ad networks play?

A: For affiliates and publishers, growing their business globally allows them to expand their client base by reaching more international brands. Conversely, advertisers can reach a massive new customer base by working with international affiliates and publishers who promote their brand across localized channels. Of course, it can be challenging for affiliates and advertisers from opposite corners of the globe to find each other. This is where ad networks step in, as the global connectors of the digital marketing industry.

Q: What are the other challenges to global growth for the digital marketing industry?

A: There are two primary challenges to global growth for the digital marketing industry: localization, and payments.

In regards to localization, an affiliate in the Japan may have a strong demand for Korean beauty brands, for example, but if the advertiser’s affiliate program information is only available in Korean and doesn’t have the means to ship to Korea and take care of all the other legal and logistical issues, it’s unlikely they’ll be able to work together. We are seeing huge improvements, though. Advertisers are hiring personnel to lead their divisions in new markets, which solves issues with the translation of creative. Logistical firms are making it easier for brands to distribute products abroad, and the ad networks themselves are providing quick access to publishers in markets across the globe.

A second challenge to global growth is payments. Affiliates have complex payment needs. That same Japanese affiliate may be working with American brands, and getting paid in USD. If the brand is sending them payments through international wires, those funds get converted when they hit the affiliate’s bank account. However, that affiliate may need USD to pay for their ads on Google AdWords, or Facebook for example. Utilizing traditional payment methods, they are forced to convert those funds back into USD, resulting in two sets of FX fees and correspondent bank fees, not to mention delays on both ends of the transaction as the money is wired internationally.

In fact, Payoneer affiliates use nearly 10% of the total funds they receive to make payments to Google and Facebook. This is where Payoneer’s unique solutions come in. We allow affiliates to hold those funds in USD (or other major currencies), and then use these funds for their business by buying advertising with their Payoneer Prepaid Mastercard®, paying someone in the Payoneer network for free, or using one of our other payment methods. Only when they decide to withdraw the funds (either to their local bank account or using an ATM) will it be converted to their local currency.

We also eliminate payment delays for affiliates, allowing them to make those reinvestments into their business faster. Recently, we launched our Early Payments service, which allows affiliates to get access to their funds a month or more earlier. The digital marketing industry typically operates on a net-30 payment structure, but some brands and ad networks operate on net-60, net-90, or even net-120. This means it can be months before affiliates are able to access their earnings.

With Early Payments, affiliates are able to start using their funds right away. It’s also risk-free; unlike a traditional loan, the affiliate chooses how much to receive early, and doesn’t take on any debt. This allows them to access funds to make those crucial investments for growth right when they’re needed.

Q: What are the top spots for international expansion? What geographies should people be paying attention to?

A: The APAC region is undoubtedly one that everyone should be paying attention to. In particular, we’re seeing huge growth in the strength of consumers from China, who have an increased appetite for Western brands, and more disposable income than ever before.

According to eMarketer, the average annual eCommerce spending per buyer in China increased by 14% from 2014 to 2015. China has historically been a very strong region in regards to manufacturing and production, and as a result have been a driving force of the eCommerce boom we’ve seen in recent years. Now the tables are turning and more and more brands are wanting to get in front of Chinese consumers. For this reason, we see growth in the number of affiliates in the region, as companies look for partners who can help them reach local customers.

Q: What do you think the digital marketing industry will look like in the coming years?

A: The digital marketing industry is following the same trend that we see all across the business world – more and more companies are growing globally, as consumers become more comfortable with the idea of buying internationally. The internet has made the world smaller for everyone, and markets are more connected than ever. As a result, we see ad networks becoming increasingly important in terms of acting as a connector between local brands and global affiliates and publishers. As this industry continues to grow across borders, we look forward to increasing our support and offering more tools to fit the unique needs of affiliates, publishers and ad networks alike.

About Payoneer

Payoneer is the digital marketing industry’s partner for global growth. Payoneer has built a cross-border payments platform that makes it easy for ad and affiliate networks to pay publishers and affiliates globally. Payoneer works with ad networks like CJ Affiliate by Conversant, Tradedoubler, and Shareasale to help them make payments to these international affiliates and publishers in over 200 countries and over 150 currencies. Payoneer has also introduced Early Payments, to help ad and affiliate networks offer their affiliates and publishers faster access to their payments.

About Scott Galit

Scott Galit is the CEO of Payoneer. Scott began his career as an investment banker at Donaldson, Lufkin & Jenrette, taking part in eBay’s IPO. He was also the founder and CEO of Solspark, SVP/General Manager of First Data Prepaid, EVP at Meta Payment Systems, as well as founding board member of the NBCA. In 2010, Scott joined Payoneer and since has helped enable businesses to overcome the barriers they previously faced with cross-border payments. Payoneer most recently raised $180 million in a funding round led by TCV, a true testament to the success Scott has enabled Payoneer to accomplish in the world of fintech.



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