Payoneer continued its strong growth in Q3 25, seeing uptake across the globe in a wide range of metrics. We spoke to CEO John Caplan and VP of Investor Relations Michelle Wang about the company’s performance and plans for the future.
Payoneer has once again reported positive progress in Q3 2025, seeing total revenue increase 9% YoY to $270.9m. The company also posted a 3% YoY increase to its adjusted EBITDA, reaching $71.3m in Q3 – resulting in an adjusted EBITDA margin of 26%.
Having delivered record Q3 results, Payoneer has raised its 2025 guidance, expecting total revenue to sit between $1.05bn and $1.07bn at the end of the year. The company has also raised its expectations for adjusted EBITDA to be between $270m and $275m, representing a 26% margin at the midpoint.
To find out more about how the company is outperforming previous expectations and how it plans to continue its growth trajectory, we caught up with CEO John Caplan, alongside Payoneer’s VP of Investor Relations, Michelle Wang.
Payoneer revenue drivers in Q3 2025
Daniel Webber:
John and Michelle, a pleasure to talk with you again. I can see revenue is up in Q3 – what were the key drivers behind this growth?
John Caplan:
Q3 2025 proved to be yet another record-breaking quarter for Payoneer. We continue to deliver consistent strong execution and great growth. We saw 15% core revenue growth ex-interest and 9% growth overall.
Nearly a third of our revenue is now coming from customers receiving over $250,000 a month in volume. That is a really powerful indication of our product market fit to serve multi-entity SMBs in the highest growth economies around the world.
I think people sometimes mistakenly think of Payoneer as freelancers and long-tail. We have a profitable long-tail business, so every incremental long-tail customer we add is accretive now, which is a powerful change. But really, the energy in our revenue is coming from the larger customers who are using more of our accounts payable (AP) products. We are now an AP company as much as we are an accounts receivable (AR) company, and the numbers we keep putting up are proof that we are in a unique spot with cross-border SMBs that need a foreign bank alternative solution.
Payoneer reports continued strong revenue growth
Payoneer delivered its highest ever quarterly revenue of $270.9m in Q3, representing a 9% YoY rise, while revenue excluding interest income grew 15% YoY, reaching another quarterly record of $211m.
Adjusted EBITDA grew 3% YoY to $71m in Q3 and the company also saw volume increase 9% YoY to $22.3bn.
Despite significant growth in these metrics, Payoneer also reported that net income fell 66% YoY to $14.1m, although it attributed this dip to a $19m income tax benefit in Q3 24. The company said that this largely derived from a federal tax deduction for 2024, as well as for the prior year for income earned from foreign customers and lower foreign tax expense related to stock-based compensation.
Moving upmarket with B2B: combining AP and AR products
Daniel Webber:
Payoneer’s B2B revenue grew 27% in Q3, which represents around 30% of revenue excluding interest. What can you tell us about this growth?
John Caplan:
Around 50% of our B2B growth came from those $250,000 a month customers as well. This comes as a result of us moving upmarket. Our B2B customer segment rose to $3.1bn in volume, while its revenue grew 27% YoY. Meanwhile, growth in China rose 18% and APAC volume grew 26%. Revenue across these markets is consistently growing because we’re adding strong new cohorts of customers.
Larger customers use more of our AP products. One of the interesting things they do is they pull funds out of their local banks, they take from their existing balance sheet, they move funds into their Payoneer account to use our AP products.
I think sometimes people mistakenly assume that all of the activity in Payoneer accounts is the result of AR volume. I think the Payoneer of the future is a financial operating account, irrespective of all the AR and all the AP, but we’re seeing hundreds of millions of dollars leave local bank accounts and get loaded into Payoneer accounts so that they can use our AP products. The power of AP and AR together is driving our B2B business.
We also see this with our cards. 12% of the usage at Payoneer is people spending on a card – this was 8% three years ago. Whether it’s marketing services firms in Dubai, business process outsourcers in the Philippines, goods exporters in China or services companies in Latin America, we have single-digit market share that we’re taking from local banks around the world and there’s nothing in front of us that should stop that.
B2B revenues bolster overall company growth
SMB customer revenue continued to be the core driver behind Payoneer’s growth in Q3, rising 17% YoY to $192m and representing 71% of all revenues. Within this, Marketplaces led the way as the largest SMB customer segment for the company and grew by 11%.
However, it was Checkout revenue that recorded the fastest YoY growth out of all segments, increasing 49% to $9m. Despite this rapid growth, Checkout’s share of overall revenue fell slightly QoQ, from 3.45% to 3.32%, as a result of other segments generating significantly larger revenues.
Growing future revenues as customer funds hits new high
Daniel Webber:
At the end of Q3, customers held over $7.1bn on the Payoneer platform. Talk us through how you’re achieving consistent growth in this metric.
John Caplan:
In Q2, we saw 17% growth in balances on Payoneer and then we saw a further 17% growth again in Q3. So what we’re seeing is that our multicurrency account utility, alongside our AP products, means our customers want to hold more funds so they can use Payoneer as their international financial operating account.
This shows that we’re becoming more valuable. We’re not just a receiving account, we’re actually the full financial services platform for our customers. I think that’s a pretty powerful indication of our momentum.
Michelle Wang:
We’ve had a lot of debates about investor perception of those customer balances and whether or not interest income is really a core part of the value proposition. I think what people forget is that, for us, because our primary monetisation is when those funds leave the Payoneer account, as those balances grow, that represents a pretty sizable and growing amount of future revenues that we will earn in the future.
Customers are not using us for 30-year savings accounts. Therefore, that money will leave eventually, whether it’s this quarter or next quarter, and as we grow those funds, we’re double monetising on that through interest we’re earning today and the future revenue we’ll get when it does leave. Even if you assume our average take rate on those funds, that’s pretty substantial revenue that’s currently deferred.
We’ve expanded our SMB take rates 12 basis points YoY. In fact, since John and our CFO Bea Ordonez joined the company, they’ve expanded our take rates ex-interest income YoY consistently for 10 consecutive quarters. That’s pretty remarkable in this current ecosystem.
Payoneer boosts take rates through global expansion
Payoneer held a larger amount of customer funds at the end of Q3 than any other quarter previously, increasing by 17% YoY for a second successive quarter – taking the funds held to $7.1bn.
This growth outpaced both the rate of growth for the company’s active ideal customer profiles (ICPs) and overall volume. ICPs shrunk 2% YoY to 548,000, though the company noted it had seen higher average volume per ICP, while total volume grew 9% YoY to $22bn.
Take rate expansion also emerged as an important driver of revenue growth in Q3, as Payoneer continued to focus on expanding in traditionally underserved regions, such as Asia-Pacific and Latin America, which have more attractive take rate dynamics than in North America, China, Europe, the Middle East and Africa.
The company’s overall take rate for its SMB services increased by 12 bps YoY to 1.21%, representing an increase for the third quarter in a row. Its B2B take rate increased by the highest margin in Q3 to 1.99%, up from 1.75% in Q3 2024, while enterprise payouts sat at the other end of the spectrum, falling by 4 bps YoY to 0.26%.
Inside Payoneer’s acceleration in China and LatAm
Daniel Webber:
Since the US tariffs came into play, how has the business performed in China?
John Caplan:
The most important message about China is that in Q3, we saw a reacceleration in growth in both volume and revenue for our China business. That’s a very positive signal about the resilience of our franchise there and the strength of the entrepreneurs that Payoneer serves.
Clearly, SMB’s exporters in China are focused on diversifying their distribution globally. They’re maintaining their share of wallet to US marketplaces and doing all the things you’d expect them to do – sunsetting unprofitable products; managing pricing; adjusting the return on ad spend; and diversifying supply chains. At the same time, these companies are making sure they have Europe, the Middle East and Latin America covered, for example.
We also just hosted a big event with Mercado Libre in China with the top Payoneer sellers, helping our sellers distribute to Latin America. The more global their distribution gets, the better it is for Payoneer.
Daniel Webber:
Latin America also emerged as one of your fastest growing regions in Q3. How are you achieving growth there?
John Caplan:
We continue to be a best-in-class solution for cross-border SMBs in Latin America, with a loved and trusted brand. We have a great team on the ground there, with partnerships with the right distribution and reseller networks to help us reach and penetrate locally into the market.
There’s no way a fintech company in San Francisco that doesn’t have people on the ground in Buenos Aires, Colombia or Brazil can do what Payoneer can do. There’s around 680 million people in Latin America and they’re exporting their capability to the world. That’s a great place for Payoneer to be and our results speak to that.
Payoneer continues to focus expansion in emerging markets
Every market that Payoneer serves saw an uptake in revenue in Q3 2025, with Greater China remaining the region with the largest revenue share – at 34%. However, the region’s revenue share shrunk by roughly 0.5% YoY and its share of active ICPs also decreased by 0.4%.
Elsewhere, Asia-Pacific and Latin America continued to be Payoneer’s two fastest-growing regions in terms of revenue, increasing 21% and 13% respectively YoY. This growth comes as the company continues to focus on increasing the revenue share of underserved regions that command the highest take rates. Although Asia-Pacific only ranks third in overall revenue share, it boasts the most active ICPs out of all the regions covered by Payoneer, with 175,000.
Europe, the Middle East and Africa still commands the second-highest revenue share but saw the slowest pace of growth in Q3 at 4%. North America saw the second-slowest growth at 5% and remains the region with the lowest number of ICPs, at 38,000.
Payoneer embraces digital assets with stablecoin wallets
Daniel Webber:
You’re working with Citi on blockchain-enabled treasury transfers and have plans to offer stablecoin wallet functionality for customers in 2026. Tell us about your approach regarding digital assets.
John Caplan:
We’ve talked a lot about our treasury movement with Citi and the next phase of our innovation will be Payoneer-enabled accounts that can hold USDC and other stablecoins.
If you were going to write a book about the history of Payoneer, there might be a chapter in there about how we enabled what stablecoins did before stablecoin was even a word that people understood. The team at Payoneer built multicurrency wallets 20 years ago.
We did a ton of research with customers and they say that they trust Payoneer enough to do more commercial activity in their Payoneer account because they don’t want another wallet from a company they have never heard of and that doesn’t have the favor of the local banks or the regulators that Payoneer works really hard to maintain. So we plan to unlock this capability for our customers, which I think will help drive volume as well as customer acquisition for us.
Profitability remains strong and future opportunities beckon
Daniel Webber:
Is there anything else you’d like to add?
John Caplan:
We delivered $12m of core EBITDA this quarter, which is nearly equal to all of last year’s core EBITDA in one quarter. Essentially, we achieved in 90 days what took us 365 days to do last year.
Profitable growth is the drumbeat that’s driving Payoneer’s future and we are north of 26% adjusted EBITDA margin. We are a profitable growth company and there is a big opportunity in front of us because our portfolio and the shape of our P&L has gotten stronger. This equals a much healthier, stronger business that is primed for more growth going forward.
Daniel Webber:
Thank you both for joining me.
John Caplan and Michelle Wang:
Thank you.
