Penny Software, a cloud-based procurement software platform, has reportedly entered into a partnership with financial services company Mastercard to offer customers with an improved B2B payment experience with the help of Mastercard Track™ Business Payment Service.
As per the agreement, Mastercard Track™ will be piloted in the MENA area and Saudi Arabia and will enable secure and efficient digital payments between buyers and providers via a global open-loop network.
It will offer companies with added control over their payments with rich data exchanges and the capacity to automate payments across multiple payment rails. Some of the benefits for businesses include scalability, cash flow efficiency, digitization of existing manual operations, and enhanced security and control.
Penny Software is a provider of procure-to-pay enterprise software that enables firms of all kinds to manage their procurement and spending effectively. It is also developing a B2B marketplace in Saudi Arabia to digitize B2B sourcing and procurement in the construction industry. In late 2020, the firm was backed by regional and worldwide venture capital funds.
Class 5 Global, a Silicon Valley-based VC firm that invested in Penny Software, said that as consumer spending shifts more and more to the internet, procurement will follow this trend. As a result, they are pleased to back Penny to streamline trade and spending in the region and beyond.
Iyad Aldalooj, Penny Software CEO, said their firm’s objective is to increase efficiency and empower organizations. This aim will be fulfilled through Mastercard Track™ Business Payment Service, which allows Penny users to transfer money to their vendors using Penny purchasing software.
As per recent report by IDC, the global procurement software market is growing rapidly with a CAGR of 9.1% and is estimated to surpass $7.3 billion by 2022. However, the B2B online industry will be accounted for around 30% of global online B2B sales by 2024.