Payment products and services for the logistics industry have been around for decades, including cards in both open and closed loop networks. This article appears in Commercial Carrier Journal (CCJ) and briefly discusses electronic payment capabilities from the perspective of fleet drivers as well as merchants.
We cover the fleet industry through reports as part of our membership, including latest trends and market size. One of those trends is the use of mobile solutions to pay for fuel and other on-the-road needs, as well as various services offered through telematics.
The author discusses several products from Comdata (a subsidiary of FleetCor Technologies) which has been servicing the industry since the 1970s and has been expanding its payments services into broader vertical B2B payables offerings during the past decade. An example given is Comchek, which allowed for codes to be sent to drivers to collect cash at network sites. This is now enabled through mobile phones as well, while other capabilities are being delivered:
“Last year, Comdata launched OnRoad, a Mastercard-branded fleet card that combines driver funding with fuel payments. The funding tools of OnRoad let fleet deposit cash advances, payroll and settlements directly to the card accounts of drivers who use OnRoad as a personal debit card…When drivers use OnRoad to make a non-fuel purchase, the card automatically debits the driver’s personal fund balance.”
Moving further into the article, the author then highlights a 2015 startup out of Atlanta called RoadSync, which specializes in payment solutions in the logistics space. RoadSync has a platform that allows for the creation of invoices, receiving and tracking payments, request for pay, analytics and controls, including merchants, owner operators, and drivers.
“Funds received through the app for payment are deposited directly into the bank account that the user chooses. RoadSync plans to release a new feature for smaller customers that will enable them to have funds transferred directly to a debit card, she says….A new feature, Express Deposit, allows RoadSync users to cash out minutes after a transaction is completed. Standard payments typically take between two and four business days, but customers using Express Deposit can receive funds on their debit card in 30 minutes or less for a transaction fee.”
A combination of mobile and faster payments seems to be a good combination as we move forward in the new world of payments.
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group