The logistics and transportation industry facilitates the transfer of goods and resources along the supply chain. A delivery or shipping order is the transaction between the client or business and the driver or shipper, which includes a payment. Historically, transactions have been completed using cash as the primary payment method. As technology began to advance and the market became more globalized, technology has improved the methods of payment and given way to improved and efficient payment solutions.
A truck driver is paid for the delivery service they provide based on the agreed payment terms between the driver and the client or business requesting the service. Over the years, the logistics and transportation industry has seen a variety of methods evolve and penetrate the market such as the following: bank and online transfers, credit and debit payments, payment gateway, payment server provider (PSP), smart on-board units, electronic wallets, and in app payment.
Bank transfers occur when a payment is made by one bank to another, done in person or using online or mobile banking. Credit and debit payments are completed when a bank card’s details are inputted into an online transaction to secure a service. These are two of the most prevalent payment methods used by consumers to pay for a range of services.
Payment gateways are new payment solutions that authorize a transaction securely using a credit or debit card to transfer funds into the company’s merchant or business account. This solution has become prevalent in the market for individual customers and have been utilized by small and medium businesses (SMEs). A payment service provider (PSP) allows drivers or service providers to accept online payments without a business account through a third party payment processor. This system is often used by businesses or trucking providers as it requires minimal set up and can also be integrated into an application under agreeable terms of service.
However, truck drivers are not only receiving payments for services, they also make a variety of payments along their journey. Drivers account for backhauling which includes expenses of fuel, weight bills, and potential toll station fees. On-board units (OBUs) are small devices that can be used by truck drivers to manage toll payments. OBUs provide a simple way to communicate using a radio frequency to receive the toll pass. OBUs are an another improvement for tolling and opportunity to reduce traffic at toll stations for the transportation industry. Electronic wallets or e-wallets are online service or software program that allows one party to conduct electronic transactions with another party using digital currency for goods and services. E-wallets are another opportunity to explore within the industry to facilitate payment flexibility for drivers and allow them to sustainably continue to support their backhauling expenses.
Finally, using the advanced technology now available, in-app payment has now become available. Naqla has integrated several strands of technology to simplify the entire payment process. Once the shipment’s details are inputted, an immediate quote is provided by Naqla along with a search to identify the ideal shipment carrier. Once the carrier is identified and receives their shipping mandate, the payment terms can be set and facilitated through Naqla’s applications with
further innovation and enhancements to its payment solution to be explored. Make it simple, use Naqla’s applications today available on the android and iOS systems!
Stay tuned next week for “The Truck Driver: Naqla’s Generational Investment”
