Revolutionizing fleet management with contactless payments

Innovation with contactless payment capabilities

Back in 2016, Amazon recognized an innovation opportunity and created the world’s first cashier-less, brick-and-mortar stores. Launching its first Amazon Go store, Amazon brilliantly incorporated the increasingly popular contactless payment technology: consumers at Amazon Go stores could use mobile payment methods to shop, as opposed to traditional payment solutions. Then in 2021, Starbucks used Amazon Go’s technology to open a “pickup cafe” in New York City. The success of these Starbucks and Amazon stores sparked the beginning of a retail revolution.

Leveraging Amazon’s cutting-edge “Just Walk Out” technology, these cashierless stores created a seamless pickup experience.  As customers enter an Amazon Go location, their Amazon mobile app is scanned. Then, as they choose items off a shelf, hundreds of cameras, installed throughout the store, record the item and place it into a virtual cart. If the item is placed back on the shelf, it is simultaneously removed from the cart. As the customer exits the store, their Amazon account is charged for the items in the cart, thus allowing the customer to shop and leave avoiding any check-out process. This innovation offers a peek into the potential applications of contactless technology, and while the success of these stores have yet to be fully determined, the outlook is optimistic.

Contactless payments for the trucking industry

The trucking industry has been significantly impacted by the contactless payment revolution, experiencing increased efficiency and convenience as a result. Along with the many advantages of fleet cards, which streamline financial transactions, using them at cashierless locations at fueling stations help save time in a hectic schedule. Digital payment solutions offer various benefits including increased efficiency, reduced risk of fraud, improved cash flows, enhanced safety, and greater customer satisfaction. 

Contactless payment is what’s expected and a part of how we all fuel our vehicles now, and is a welcome convenience for truck drivers. While automation makes for convenience and ease, customers are not yet ready to give up cashiers and customer service representatives in every instance. The self-service and automation inherent in a contactless payment is most popular where convenience is a priority – like at fueling stations and convenience stores (c-stores).

Which type of contactless payment is your fleet using?

McKinsey’s 2023 Digital Payments Consumer Survey revealed a steep uptick in consumer use of mobile banking and payment technology. Studies show that in 2023, nine out of ten consumers said that they have used some form of digital payment during the year. Digital payments were a rising trend, which grew exponentially during and since the pandemic. This shift in the economic landscape has encouraged banks to create their own mobile apps or partner with contactless payment services. In an effort to maximize efficiencies and control finances during and post-pandemic, trucking companies have more readily adopted fleet cards, which have become equally as valuable to fleet managers as they are to drivers.These fueling cards are not just for large corporate fleets. Regardless of the fleet size, flexible fleet card solutions can address any requirement a fleet manager might have. Some companies offer an even more robust network, offering fuel and non-fuel purchase capabilities. The trucking industry has made tracking purchases and creating efficiencies a priority with contactless payments part of that formula. With an “on the go” convenience and the ability to manage cards and funds remotely from any mobile device, fuel card companies create a better process for both managers and drivers.

Contactless payments: the digital payment technology of the future

According to SEO Executive, Debashree Dey, the digital payment market reached a value of $67.26 billion in 2022 and is projected to reach $221.92 billion by 2030. With a predicted compound annual growth rate of 15% for the 10-year forecast, the digital payment market is creating a revolutionary shift in the way consumers pay. As further research and development goes into security and convenience initiatives, contactless payments may soon overtake physical ones. 

Forbes’ Amanda Claypool revealed that over half of all Americans use digital payments more than traditional payment methods, and more critically, over half of the survey respondents claim that they would stop shopping from somewhere that does not accept contactless payments. 

The top 8 mobile payment advantages for your fleet

1. Purchase and financial controls
2. Consolidated transactions
3. Better authorization controls
4. Card-level programming
5. Superior fraud prevention tools
6. Real-time online account reconciliation
7. 24/7 online and mobile access
8. Seamless system integration with leading third-party software providers

While it seems consumers in any industry are looking for the convenience of contactless payment, these advantages represent how impactful contactless payments are to those in the trucking industry. 

Apply for a fleet card today!

Resources:
McKinsey
LinkedIn
Forbes

Editorial note: This article was originally published on January 31, 2018, and has been updated for this publication.