Payoneer Escrow sent out an email to some of its partners today to inform them that the company is exiting the domain escrow business, and I was forwarded the email. Payoneer Head of Strategy and Business Development Matt Watts sent an email stating, “it’s with sincere apologies that I’m sharing news that Payoneer is discontinuing our escrow business.” The email continued, “While we have been excited and honored to service customers and partners like yourself, after careful review of our product portfolio have decided to commit our focus to other areas of the Payoneer business.”
In 2016, Payoneer acquired a California-licensed Internet escrow agent doing business as Armor Payments, and the company began offering domain name escrow services. Brandon Abbey, formerly of Escrow.com, was hired by the company to help get its start in the domain escrow business. The global payments company has been offering domain name escrow services for approximately two years.
I believe the company will continue to see out any deals in escrow, but I don’t believe they will be taking on additional transactions. I am not sure what will happen to any holding deals where domain names are in escrow with payment plans. I presume the company will contact clients who are impacted (if there are any). Update: I was told the company will honor its obligations related to transactions in progress.
I don’t really have much additional information to share at this point. I have a call scheduled with Matt for tomorrow morning and will try to fill in additional details that I learn. Hopefully, Payoneer will send an email to all customers who have signed up for accounts on Payoneer Escrow to let them know about this news so they can plan their business accordingly.
More to come…