Penny Software, the digital procurement software, has signed a partnership agreement with payments technology firm Mastercard to provide its customers with an enhanced business-to-business (B2B) payment experience via Mastercard Track Business Payment Service. The collaboration will pilot Mastercard Track in Saudi Arabia and the greater North Africa and Middle East (MENA) region.
Mastercard Track facilitates secure and efficient electronic payments between buyers and suppliers through a global open-loop network. It allows businesses to have greater control of their payments with rich data exchanges and the ability to automate payments across multiple payment rails. Among the benefits for businesses are the ability to scale, improved security and control, cash flow efficiency and digitization of existing manual processes.
“Our mission at Penny is to provide efficiency and empower organizations. Mastercard Track Business Payment Service fulfills our mission by enabling penny users to wire-transfer money to their vendors through the penny procurement software,” Iyad Aldalooj, the Penny Software CEO said.
“There is a structural need to digitize and automate B2B payments accelerated by the global pandemic and Mastercard Track allows us to fully take advantage of this opportunity. We are delighted to partner with Penny Software to further deliver on modernizing the business payment ecosystem in Saudi Arabia and the wider MENA region by delivering a better payment reconciliation experience for corporate and SME customers looking to optimize the way the pay and get paid.” said J.K. Khalil, Country Manager for Saudi Arabia, Bahrain & Levant, Mastercard.
Penny Software provides procure-to-pay enterprise software that helps companies of all sizes to fully manage their procurement and spending activities. In addition, Penny is building a B2B marketplace in Saudi with a mission of digitizing the B2B sourcing and procurement for the construction sectors. Penny was funded in late 2020 by regional and global venture funds.
“COVID-19 reinforces our commitment at penny of digitizing procurement from request to payment. Our partnership with Track enables our users to streamline their business payment through the penny platform” Said Majid Aldalooj, COO of penny software
In November 2020, Mastercard announced the addition of global Card payment capabilities to Track Business Payment Service and Account-to-Account functionality in the US, with plans to scale globally. With Mastercard Track, Penny will provide a comprehensive procurement solution that allows businesses to fully digitize and consolidate their procurement from request to payment.
The global procurement software market is a market with great potential and is currently growing at a CAGR of 9.1%, and expected to reach $7.3 billion by 2022 according to IDC, while the B2B online marketplaces will account for about 30% of all worldwide online B2B sales by 2024, according to Digital Commerce.
“As consumer spending continues to drastically move online, we believe the same innovation will happen in procurement. Class 5 is proud to back Penny to simplify trade and spending in the region and beyond,” said Joel Ayala from Class 5 Global, a Silicon Valley-based VC that invested in Penny Software.