Payoneer Part 2: How Payoneer Can Build Moats in China?

  1. Use the following moats as a framework to find and analyze competitive advantage for Payoneer China. The moats applied are : (i) Intangible Assets (ii) Network Effects (iii) Cost Advantage (iv) High Switching Costs.
  2. For intangible assets, consider reward points and perks for different status. For network effects, consider leveraging Payoneer’s international presence. For cost advantage, consider integration cost advantage. For high switching cost, consider leveraging data and software build out.

The Economic Moats

Apply Economic Moats to Payoneer

Intangibles Assets:

Source: Bank on Status
Metal card is advertised as “Make a statement”
  1. Points program to keep users, and create different tiers: silver, gold, platinum
  2. Reward for the points can be free tickets, free hotel stays, or free vacation, or exclusive access to events
  3. Different tiers will have different perks, such as free access to airport lounges. Assuming travel is a big area of interest for target users.

Network Effects:

Cost Advantages:

Payoneer IaaS Layer

High Switching Costs

Bring it together:

  1. Intangible asset: establish reward points and perks for different status.
  2. Network effects: leverage international presence, and build out a stronger seller and supplier network to help sellers grow
  3. Cost advantage: create integration as a service (IaaS) layer to enable users seamless payment acceptance worldwide.
  4. High switching cost: build out more software features and leverage data.




passion for #fintech #payments #RTP real time payment #Banking as a Service #digital strategy #blockchain

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Ming-Chieh Lee

Ming-Chieh Lee

passion for #fintech #payments #RTP real time payment #Banking as a Service #digital strategy #blockchain

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