Payoneer acquires Armor Payments to provide escrow services to millions of customers
When Payoneer first came to life, all we had was an idea: provide an easier, more cost efficient and secure way for professionals to conduct business internationally.
Fast forward 10 years, 2000+ clients, and 3 million users… it’s safe to say we were on to something. Our success is built on anticipating the payment needs of our customers, and providing solutions to meet them.
That’s why today we are proud to announce that Payoneer has acquired Armor Payments, an online escrow service for B2B commerce.
Why does escrow matter?
In the B2B space, when buyers and suppliers don’t know each other, the lack of familiarity, security, and simplicity can hinder business growth. More often than not, the most common point of friction is the act of payment itself. That’s where escrow services come in, offering some welcome relief:
- When buyers and sellers have limited experience doing business together
- When buyers and sellers reside in different countries
- When goods or services are more than just commodities
How does escrow work?
Escrow reduces risk for sellers and buyers by using a trusted third party to hold funds from a buyer until goods or services have been delivered. Sellers can ship goods or deliver services with confidence, knowing the buyer has paid, and buyers feel protected as the seller won’t receive payment until they review and approve the goods or services.
- Agreement: Buyer and Seller agree to transaction terms
- Funds in Escrow: Buyer pays to secure Armor Payments account where funds are held in escrow
- Delivery: Seller ships goods or provides service.
- Payment: Buyer releases funds after inspecting the goods or deliverables, and the sellers gets paid
What does it mean for the future of B2B Commerce?
We expect online escrow payments for businesses to be in high demand as B2B buyers begin to expect the same level of convenience and security for their business purchases as they do with their consumer purchases. The simplicity and speed that comes with online escrow will give a boost to global B2B commerce, and we’re excited to be at the forefront of this global shift.
See our press release on this exciting news, and a blog post from Scott Reynolds. CEO of Armor Payments. Stay tuned for more as we further integrate Armor Payments Escrow into our global payment platform.