Digital Payment Leaders Influencing Fleet Payment Solutions for All the Right Reasons
The trucking industry has come a long way since the days that long-haul drivers were considered outlaws. The trucking and transportation sector services every industry in the world, and in doing so, have been some of the first to embrace technology and evolve right along with it. Of course, innovation started with efficiencies in the mechanics and the equipment but because the logistics industry is held accountable for the detailed coordination of a complex operation involving people, facilities, and supplies, the need for robust tracking, monitoring and measuring became critical.
Now the trucking industry not only leads with innovation in facilitating deliveries around the globe, they have turned to technology in maximizing digital payment systems within the complex and fast paced world with which they are engaged. Much of the industry has turned to innovative leaders like EFS and Mastercard in offering robust Fleet Payment solutions, Fuel Cards and Fleet Cards. Digital payment leader EFS look to broaden their own offerings by providing access to what's next in payments innovation and new ways the trucking industry can leverage these tools and services. With that, it is possible to foresee even more alliances taking shape that could benefit the trucking industry enormously.
Consumer Behavior Influencing Corporate Payment Innovations
While cash leads in the retail arena capturing almost 40% of all consumer transactions in the world, it is clear that consumer behavior continues to shift, and more people are shopping online, and the behavior is influencing how corporate leaders are addressing their own payment systems.
E-commerce is booming. Global e-commerce sales will jump to $4 trillion by 2020, up from $2.35 trillion in 2017, accounting for nearly 15% of all retail spending worldwide, says research firm eMarketer.
Statistics like these show that digital payment methods are gaining even more traction and attracting an entire generation in millennials and influencing savvy corporate financial leaders. While the trucking industry may not be innovators in digital payment processes, they are quickly earning a reputation for partnering with the experts who are. Companies like EFS have worked tirelessly to address the specific needs of the trucking and logistics arena by developing state-of-the-art products like fuel cards, fleet cards, and payroll settlements. The forward-looking systems provide complete control and visibility over digital payments and spending, while the streamlined approach enables efficiencies that are critical in the success of fleets both large and small.
Currently, EFS is offering instant payments through EFS Checks and MoneyCodes®. This convenient and simple-to-use solution accommodates emergency needs or simple payments, such as roadside services, repairs, lumper fees or purchases made at one of the few out-of-network fuel centers. Because an EFS Check works much like a personal or company check, it has nearly universal acceptance. EFS Checks are a cost-effective way to instantly issue payment or cash — 24 hours a day. As technology advances and as users require, EFS will continue to address the most effective and innovative ways to deliver payments that will include a peer to peer networks like Venmo or the technology and networks offered by current partner MasterCard as they build out their own card services as well as digital non-card options from companies like PayPal.
In one of many strategic global partnerships implemented over the last several years, PayPal extended its existing partnership with MasterCard to the Asia-Pacific region. The collaboration will increase value and create opportunities to leverage MasterCard's payment flow technologies and networks not only to MasterCard cardholders, but to MasterCard Partners like EFS as well.
Before There Were Fleet Cards, Fuel Cards, and Robust Digital Fleet Payment Systems
PayPal was the first in the market to offer digital transfer and payment in the digital consumer arena. The company, whose founders included Elon Musk, Peter Thiel, and Reid Hoffman, created the first credible digital transfer platform. The company was the first to develop a “virtual wallet” enabling consumers to make online payments connected to their debit and credit cards. With 184 million active users and serving 14 million merchants, PayPal is currently leading the industry in digital payments and clearly influencing the world of payment strategies.
In 2015 PayPal processed $278 billion in payments, generating $9.2 billion in revenue growing 20% annually — Fortune Magazine
However, from their inception and for the last several years, most of PayPal’s revenue has been generated from website commerce resulting in a lag within the mobile arena. Consequently, in the company’s effort to catch up with the rest of the industry, they have focused on building a partnership and acquisition strategy that has proven to benefit both consumers and merchants and potentially B2B clients. Their purchase of Braintree was significant in that the acquisition also included Venmo, the preferred peer to peer payment and transfer app within the millennial consumer segment. PayPal has also forged new alliances with Visa, Mastercard, Google and Facebook which has galvanized their position as innovative leaders in their field and an asset to all of their strategic alliances. Their expanded partnerships with banks will give them a depth in retail that they have never held.
And as the world of corporate payment solutions continues to shift and evolve, the trucking industry can rest assured that a partnership with EFS will bring even better products and deeper relationships that make their customers more successful and their companies stronger.
While the B2C community has been able to leverage the benefits of online and peer to peer payments quite seamlessly, the B2B community and companies like EFS can leverage this technology, networks, and capabilities to meet their own industry needs through innovative systems, tools and partnerships. And as the world of corporate payment solutions continue to shift and evolve, the trucking industry can rest assured that a partnership with EFS will bring even better products and deeper relationships that make their customers more successful and their companies stronger.