Payment technologies have evolved remarkably over the last decade. The payment process has elevated in every industry, from retail and entertainment to healthcare and fleet payment, but no segment has transformed quite as much as payment between peers — otherwise known as person to person or peer to peer payment (P2P). These electronic transactions are made between people through a P2P payment application such as Zelle, Venmo, PayPal, or Square Cash. P2P payments can be sent and received via mobile device or any home or laptop computer. The convenience and access that these P2P payment apps offer are changing the payment landscape in a way that no one really saw coming, including the trucking industry and fleet payment firms.
According to eMarketer, by 2021 the total value of mobile P2P transactions in the U.S. could rise from $156.5 billion to $244 billion. And USA Today reported that Venmo, Zelle, and Square Cash dominate the P2P payment market.
— Mobile Payments Today
Although the P2P payment industry is predominantly consumer driven, the growth and convenience it offers is pushing industry to simplify B2B payments, including for the trucking and transportation industry. Unfortunately, this is easier said than done. A paper billing system may be cumbersome and slow, but processing real-time payment in the manner of a P2P solution brings extra challenges to the logistics industry.
This challenge has led businesses — often small and medium-sized businesses (SMBs) — to rely on paper checks, cash, and hand-written invoices and receipts. Adding to the complexity of the issue is the fact that many of these players are billing and accepting payments in remote locations.
It makes sense that because the trucking industry is constantly moving, the ability to make real-time fleet payments via a mobile app in the manner of P2P solutions would create even more efficiencies for the fleet. Unfortunately, some trucking companies still rely on paper checks and fleet cards because they don’t have the resources to implement the digital platforms necessary to accept digital payments. That puts these same companies at risk of the high levels of fraud and human error that go along with manually executed invoices and receipts. And when the financial supply chain is disrupted, it adversely affects the entire supply chain.
The good news is that the new consumer payment landscape is putting pressure on the trucking industry to simplify fleet payment—and it is listening. Many trucking companies are already partnering with experts to help. Payment leader EFS/WEX has positioned individual trucking companies across the nation to see the value of electronic fleet payment, particularly where control and transparency are concerned. Electronic payment solutions are also delivering more than just cash. They are providing insights into each fleet payment that lead to even more efficiencies and the potential for growth. EFS/WEX gives fleet managers the capacity to focus on the business of trucking while they streamline the payment process and support the financial and fleet payment end of the business.
HL: Cut Cost, Mitigate Risk, and Generate Revenue
In an answer to complicated paper-based billing systems, EFS/WEX Electronic Payments solutions help to optimize and simplify the financial supply chain—delivering a seamless customized approach to the procure-to-pay process.
Regardless of the size or complexity of the business, EFS/WEX solutions can help to reduce manual processes and enhance control and visibility of supplier payments, by:
- Replacing paper-based payments and remittances with seamless electronic transactions
- Increasing customization and control to better manage and restrict the timing, recipient, and amount of each payment
- Improving margins
- Enhancing data capture to reduce the burden of manual reconciliation
- Supporting core business strategies with our industry expertise and knowledge of best practices
Trucking companies are seeing the remarkable value that partnering with a payment company can bring to their business, and while it might seem overwhelming at first, the benefits and advantages soon become clear. Besides electronic fleet payments, companies like EFS/WEX can also offer administrative support and tools that can enhance the payment platform. Where P2P can offer a seamless virtual payment, so too can WEX offer virtual payment capabilities, and with even more benefit.
WEX virtual payments offer more security, control, flexibility, and data visibility than checks and other payment types. WEX virtual payments allow trucking companies to:
- Pay suppliers more safely and efficiently using the Mastercard® and Visa® payment networks
- Access flexible issuing options: Choose single-use or recurring virtual payments
- Easily reconcile payments and access real-time transaction information and reporting
So as technology continues to transform the payment landscape, the trucking and transportation industry can be confident that the evolution will only help to transform their business for the better.