Payoneer Launches EU Subsidiary in Gibraltar

Rhett Pardon

NEW YORK — Global payments solutions company Payoneer has launched an EU subsidiary in Gibraltar, a move that is likely to expand its virtual-currency offerings throughout the European continent.

Up until now, Payoneer hasn't been a licensed banking institution in the EU and the processor has had to outsource its card-issuing business involving prepaid Mastercard products.

But in July, the Gibraltar Financial Services Commission gave the green light to Payoneer, adding the company to a list of only three companies that are authorized for the issuance of e-money.

The two other non-bank e-wallet companies authorized by Gibraltar financial regulators are Wave Crest Holdings Ltd. and Transact Network Ltd.

Payoneer, as well as the two other e-wallet companies, have banked on the EU E-Money Directive of 2009 that allows EU countries to allow bank establishments not only nationally but by the various member countries within the EU market.

Payoneer's move appears as a major expansion into the EU that could bring enhanced products, flexibility and capability for the New York-based company, which specializes in payout solutions for service providers, performer payouts and affiliate networks.

Seven-year-old Payoneer, which also has an office in Tel Aviv, provides only e-wallet transactions and does not provide third-party processing or credit card processing.