Payoneer has acquired Armor Payments as it seeks to create a global alternative to letters of credit.
Armor Payments, founded by ex-PayPal and MasterCard executives, is the only licensed B2B payments provider offering Escrow-as-a-Service (EaaS) payment solution.
The EaaS solution enables B2B marketplaces to integrate a simple API and offer secure payments that protect their buyers and sellers.
Financial terms of the deal were not disclosed.
The acquisition will integrate the security features provided by Armor Payments with Payoneer’s platform, enabling businesses of all sizes across the global to carry out online escrow payments with reduced risks.
Payoneer CEO Scott Galit said: "The escrow solution of Armor Payments fills in a critical missing link for B2B transactions, and moves beyond payments to address the trust gap that often exists between trading partners.
"Our combined capabilities create a unique global platform that enables more businesses to grow faster by allowing them to securely trade across borders with more partners in more places, regardless of where they are in the world.".
Armor Payments will join Payoneer’s office in California and maintain its development center in North Carolina.
Founded in 2005 and based in New York, Payoneer connects businesses, professionals, countries and currencies with its cross-border payments platform.
Several companies such as Airbnb, Amazon, Getty Images, Google, and Upwork depend on Payoneer’s mass payout services.
Image: Payoneer acquires Armor Payments to provide global businesses with secure escrow services for cross-border trade. Photo: courtesy of stockimages/FreeDigitalPhotos.net.