Drug shortages and expensive medicines are a major problem worldwide. Moreover, the pharmaceutical raw materials market is complex and not transparent. The Dutch platform Pharmaoffer solves this by offering medicine makers worldwide easy access to qualified raw material suppliers with fair prices. To facilitate payments on the platform in a reliable and secure manner, Pharmaoffer has chosen Online Payment Platform.
Pharmaoffer's platform has two types of users: medicine makers such as pharmacists and hospitals (buyers) and raw material providers (suppliers). The buyer can search on a material and use the filters on the platform to see only the relevant suppliers. Then the buyer can contact the supplier of his or her choice via the platform. If both parties reach an agreement, Pharmaoffer also facilitates the order process.
"By linking medicine makers and raw material suppliers directly, we are eliminating the middlemen who have previously held the reins," says Ammar Badwy, CEO of Pharmaoffer. "Because it is a challenge to get a traditional industry excited about online transactions, reliability is a key focus for us. First, when it comes to the trading parties and the quality of the products they provide and second, for the financial part of the transaction."
To create trust, Pharmaoffer ensures that all parties on the platform are extensively validated. This includes checking that suppliers meet the required pharmaceutical certifications and that both parties have the right paperwork to trade in pharmaceutical raw materials. For a secure financial settlement of the transactions between buyers and suppliers, the pharmaceutical disruptor works together with Online Payment Platform.
Customization by a unique partner
Notable in the selection of a payment provider, Badwy found that Online Payment Platform was the only party that really listened to the global problem that Pharmaoffer wants to solve. "Other providers quickly cut the conversation short by saying that the general terms and conditions do not allow them to facilitate payments for parties operating in the pharmaceutical industry. Online Payment Platform was interested to hear what we want to achieve and how we have set up our platform to ensure precisely that a reliable environment is created. Our question needed customization and to deliver this we found in them a unique partner," Badwy believes.
Online Payment Platform handles both payments for suppliers' subscriptions and payments between parties for Pharmaoffer. With the latter, Pharmaoffer's margin on the transaction is also automatically settled.
Equal crossing contributes to reliability
Badwy: "Just as we are specialized in the validation of our buyers and suppliers, Online Payment Platform is specialized in the validation of the payments. These take place according to the principle of equal crossing. This means that when an order is placed, the buyer's money is held until the goods are received. The supplier then receives the payment. We can thus guarantee delivery to the buyer, and the supplier runs no credit risk. In addition, this makes it easier to do business with still unknown suppliers."
For Badwy, this is a hugely important USP with which Online Payment Platform directly contributes to the trust of parties in the platform and the market position of Pharmaoffer: "Just like a notary, we work with an independent third party for our payments. In addition, Online Payment Platform has the right permits and licenses such as PSD2. Which also confirms our confidence in them."
The first experiences with Online Payment Platform are very positive. For example, the integration of the payment solution went smoothly and Pharmaoffer also received personal support from Online Payment Platform's technical experts. Medicine makers and commodity suppliers now benefit from a seamless payment experience on the platform.
Next step: Indian Rupees
"Over the past year, we have grown even faster than anticipated. The pandemic has also been a tipping point in the pharmaceutical world. Those who were usually focused on trading through personal contacts at exchanges and others were forced to do business digitally. This meant a boost for our platform, which is now already used in more than 185 countries. Together with Online Payment Platform, we are working on the next step to enable payouts in multiple currencies such as Indian Rupees. We can't wait to grow further internationally with this," said Badwy.