"I want to #communicate that funds held by you in your #payoneer account are #available and #accessible to you in the normal way. #Customer funds held with #Payoneer are not at risk from the closure of Silicon Valley Bank" - CEO John Caplan
Is this reassurance statement from the CEO, satisfactory for customers? such assurances are not legally binding and may not provide the same level of protection as FDIC insurance.
Payoneer is not a bank, but a financial services company that provides online money transfer and digital payment services. Therefore, deposits made with Payoneer are not FDIC-insured.
Payoneer is a registered Money Services Business (#MSB) with the US Department of Treasury, which is required to comply with various regulations to ensure the safety and security of customer funds.
For example, Payoneer is required to maintain certain levels of capital and reserves to ensure that it has sufficient funds to meet its obligations to customers. In addition, Payoneer is required to safeguard customer funds by keeping them in separate accounts from its own operating funds.
In June 2021, Payoneer filed a registration statement with the US Securities and Exchange Commission (SEC) to become a publicly traded company through an initial public offering (IPO). The registration statement includes financial information for the years 2018, 2019, and 2020. According to the registration statement, Payoneer's revenue grew from $293 million in 2018 to $434 million in 2020, representing a compound annual growth rate (CAGR) of 19.1%.
Payoneer also reported a net loss of $11.2 million in 2018, a net income of $4.2 million in 2019, and a net income of $9.3 million in 2020. Payoneer's total assets were $328.7 million as of December 31, 2020.
If #Payoneer were to #default, customers would likely have some level of protection through regulatory schemes such as the Electronic Fund Transfer Act (#EFTA) and the Uniform Commercial Code (#UCC), which govern electronic funds transfers and financial transactions in the United States. These schemes provide some level of protection for consumers in the event of #unauthorized transactions or disputes (but I am not so sure about how it works for those based outside States).
It is important to note that these protections may not provide #full #coverage for #all deposits or losses in the event of a #Payoneer #default.
#Customers should carefully review the terms and conditions of their account agreement with Payoneer to understand the level of protection provided and consider #diversifying their funds across multiple financial institutions to reduce the risk of loss.
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