Payoneer Escrow is coming up on its one year anniversary as a domain industry licensed escrow service provider (the company has existed longer than that though). I reached out to the company to see if they could share an update about how their business is growing as well as a brief overview about the domain industry. Scott Reynolds, Payoneer Escrow GM, and Brandon Abbey, Director of Strategic Accounts at Payoneer Escrow, provided an update that I could share with readers.
The large escrow providers likely have the best view of the health of the domain space at large. Although licensed escrow providers like Payoneer Escrow and Escrow.com can not generally disclose specifics about deals transacted via their services, I think it is helpful when they offer insights about the current state of the domain business.
Here is what Scott and Brandon shared with me:
“We’d like to begin by saying we have been very pleased with the industry reception to our new domain escrow service. The support from the community has been exciting to say the least. This is truly a global market that needs global support and that is right in Payoneer’s breadbasket. This is one of the main reasons we are enjoying such a fast start in bringing domainers into the Payoneer Escrow ecosystem. Another is we recently introduced a light version of our API which allows marketplaces to quickly set up an integrated payment system for their transactions.
This is still a young industry going through interesting times. Companies have been very active in making moves to drive future growth. Epik acquiring Undeveloped is a good example. Another significant move is Above.com opening a brokerage house and hiring very experienced people to drive it, as well as GoDaddy acquiring large portfolios. We expect to see more M&A activity and consolidation over the next few years.
Most all of the transactions we are seeing are .com’s. While there is significant interest in the new extensions, there hasn’t been much activity on the secondary market. This is to be expected with most of the premium names being sold directly by the registries. From an investor standpoint we think it will be at least a year before there is any significant activity.”