Canadian Fintech Nuvei Secures Israel Clearing License Ahead of Payoneer Merger
Canadian fintech Nuvei obtained an Israeli clearing license from the Securities Authority after agreeing to acquire Payoneer for 2.75 billion dollars. The expansion will lower transaction costs for global retailers operating in Israel.
Canadian fintech giant Nuvei has expanded its footprint in Israel by securing a clearing license from the Israel Securities Authority, following its planned 2.75 billion dollar acquisition of Payoneer. The move allows global giants such as Shein, Temu, Lufthansa, and KLM to process transactions in local currency and reduce costs. Nuvei currently employs 350 people in Tel Aviv out of a global workforce of 2,600, with numbers set to surge following the massive merger.
Expanding Local Operations
Nuvei started pursuing the local clearing license about a year and a half ago during the ongoing war. The license covers payment clearing only, meaning Nuvei will not issue credit cards or compete directly with local credit card issuers, while integrating with the SHVA payment system as required by Israeli regulators.
"Do not underestimate the purchasing power of the Israeli consumer, who is very active online and travels extensively," said Yuval Ziv, President of Nuvei, in an interview with Calcalist. "Therefore, our clients are very interested despite it being a small market."
Synergy and Future Growth
Nuvei's Israeli presence builds on its past acquisitions, including SafeCharge in 2019 for 890 million dollars and Simplex in 2021 for 250 million dollars. With the upcoming integration of Payoneer, the combined company is expected to reach an annual run rate of about 3 billion dollars in revenue and employ nearly 5,000 workers globally.
