by WEX Fleet
The conversation surrounding digital currency took a new direction yesterday with the launch of Facebook’s new cryptocurrency, Libra. At a time when trust is in jeopardy for Facebook, it seems odd that they are diving into fintech, but somehow it also seems like quite an appropriate next move. With cashless payments taking over in almost every sector by way of mobile apps, mobile wallets, and digital credit cards, it is no surprise to see industry embracing the idea that the use of tangible currency in business is declining, and digital cash flow is thriving. The transition is also taking hold in the trucking industry, with fleet payments converting to digital for reasons they never saw coming.
Digital fleet payments not only provide convenience to the driver, they also create process efficiencies and provide data that can be used to make smarter and more informed decisions. Fleet payments made using a fleet card have become the norm for most trucking companies, so much so that freight factoring companies are offering the products as well. In an industry challenged to maintain consistent and steady cash flow, the idea that a single tool can not only provide the fleet cash flow needed for daily use but also enable data to strengthen operations and grow the business is a revelation. Companies like WEX and Fleet One Factoring are combining efforts to do just that.
While trucking companies are busy meeting the demands of both consumers and industry, they are likely to be more focused on the literal road ahead of them versus the financial intricacies involved in furthering the stability and growth of the company. Freight factoring companies like Fleet One can help provide the necessary resources to maintain sustainable strategies. While fleet cash flow is required on a daily basis, that does not mean physical currency.
Trucking companies have come to understand that digital payments through managed software and fleet cards can work much harder for the company than physical currency. That is why fleets of all sizes are turning to the financial expertise of WEX to help provide and manage financial resources and tools that can not only pay a vendor, but also provide data that will help the company make smarter and faster decisions overall. Cashless transactions are just as popular in the trucking industry as they are in consumer spending because they provide so much more than convenience—offering ways to analyze operations, create efficiencies, and free up fleet cash flow.
When the OTR fuel card is combined with OTR analytics and reporting services, the benefits multiply. From fuel card purchasing behaviors to industry trends and auditing tools, these services keep fleet managers informed and fleet operations efficient.
Fuel card data can:
- Show opportunities to cut costs
- Accurately forecast and budget fleet expenses and fleet cash flow
- Identify purchasing anomalies and misuse
- Find out how you're performing against your peers
- Take the work out of fuel tax reporting
The benefits of a cash-less transaction through fleet cards and digital fleet payments are two-fold. They provide operational efficiencies for the company along with convenience and security for the driver. With the help of an experienced freight factoring company like Fleet One, companies can leverage financial expertise, combined with the knowledge of the trucking industry. Through customizable solutions based on the specific needs of the company, freight factoring can offer cash and cashless resources that can take the company to the next level of growth. The benefits are clear:
- Universal acceptance
- Cash price for fuel in the EFS truck stop merchant network
- Superior purchasing controls
- MCC/TCC categories/velocity Limits in the Mastercard network
- Integrate with current systems
- Level III data
Digital fleet payment solutions provide greater transparency and visibility into fleet purchasing and volume performance through powerful analytical tools. As an example, the EFS Mastercard Fleet Card is a single-card fleet payment solution for managing and controlling fuel purchases while allowing drivers and contractors to make additional purchases within the Mastercard Network—all on a single card. Additionally, the card offers a dual network solution that combines controls for fuel purchasing with Mastercard’s wide acceptance network for non-fuel purchases such as T&E expenses, emergency repairs, and more. Fuel card fleet payment solution also provide access to a huge network of fuel and maintenance sites, including truck stops, adding to the efficiencies in time and money.
- 16,000+ EFS truck stop locations
- 10.3 million+ Mastercard locations
- 575,000 Mastercard fuel/maintenance locations
So, while a cashless economy in the United States is improbable, the shift toward digital payment continues. Mobile peer to peer apps like Venmo, Zelle, and Square Cash have become more popular than ever in the consumer world while payment leaders like WEX will continue to push the potential of digital payment in the trucking arena. Fleet payments may rely on consistent fleet cash flow, but that cash will increasingly be digital.