Mastercard Incorporated ( MA Quick Quote MA - Free Report) recently teamed up with Penny Software, a leading digital procurement software platform, in a bid to introduce Mastercard Track Business Payment Service across Saudi Arabia and the greater MENA region.
The utilization of Mastercard Track solution will enable Penny Software to offer an enhanced procurement solution to its customers, which will ensure complete digitization of the procurement process of businesses ranging from request to payment. With rapid digitization underway, safety and security of payments is of utmost importance. The unique Mastercard solution seems to be a perfect fit in such a scenario as it offers enhanced and secured electronic payments between buyers and suppliers via a open-loop network spanning globally.
The recent partnership will be of great help to businesses, who will be empowered to automate payments across several payment platforms and exert increased security as well as control over payments through high-quality data exchanges. Added advantages for the businesses include enhanced ability to scale, offer cash flow efficiencies and automation of prevalent manual processes, thereby, sustaining growth prospects of businesses.
The latest move reinforces Mastercard’s efforts to upgrade the business-to-business (B2B) payments environment of Saudi Arabia and the greater MENA region in the light of a growing digital economy. The company intends to offer an enhanced payment reconciliation outcome for corporate and Small and Medium Enterprises (SME) customers through the alliance. In this manner, Mastercard aims to address the operational and financial headwinds stemming from outdated processes and diversified point-of-origin payment systems.
Time and again, Mastercard has been partnering with several organizations and rolling out cost-effective solutions for tapping the current prospects across B2B payments space globally. In February 2021, the company teamed up with SAP Concur in a bid to assist Asia Pacific businesses to automate their expense and invoice management processes. The company has been undertaking significant investments aimed at modernizing the B2B payments space and enhancing real-time payments functionality.
The tie-up with Penny Software, which offers procure-to-pay enterprise software solutions for different companies to handle procurement and spending activities, seems to be a time opportune move. This is because the procurement software market holds promising growth prospects and is expected to witness a CAGR of 10.2% over the 2020-2025 period, per Research and Markets. The improvement seems to be driven by solid demand for centralized procurement processes coupled with amalgamation of supply chain management (SCM).
Visa Inc. ( V Quick Quote V - Free Report) partnered with Goldman Sachs Transaction Banking to offer hassle free and secured cross-border B2B payments for the latter’s clients. Other companies such as The Western Union Company ( WU Quick Quote WU - Free Report) and American Express Company ( AXP Quick Quote AXP - Free Report) have undertaken steps either through partnerships or investments to bolster digitization amid B2B payments ecosystem. Zacks Rank & Price Performance
Shares of Mastercard, which carries a Zacks Rank #3 (Hold), have gained 12.8% in a year compared with the
industry’s growth of 0.3%. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Image Source: Zacks Investment Research