For decades, the transportation and freight logistics sectors have relied on traditional payment processing tools such as paper invoices and wired card readers that can only be used at centralized locations.
While these processes are reliable, they are also painfully slow. As a result, businesses operating within the freight logistics industry may experience delays when attempting to collect payment for services rendered.
However, mobile technologies are finally being adopted at scale in the freight logistics space. These technologies allow companies to effortlessly collect digital freight payments, which provide much-needed stability to their revenue stream while simultaneously saving them both time and money.
Below, we discuss what mobile technologies are revolutionizing the way that the freight logistics industry processes payments. Our team also outlines the pain points of legacy payment solutions and explains how mobile payment tech resolves these issues.
The Pitfalls of Legacy Systems
Historically, organizations operating within the logistics and transportation space have been hesitant to adopt emerging technologies. This hesitancy comes as no surprise as these interconnected industries rely on a complex infrastructure that must be perfectly balanced in order to maintain business continuity.
As such, many business owners and decision-makers have often taken the “if it ain’t broke, don’t fix it” approach when it comes to payment processing.
Fortunately, the challenges created by recent events have spurred businesses throughout the entire logistics ecosystem to reevaluate their stance on mobile freight payments. Mobile payment processing solutions allow businesses to eradicate common pain points associated with legacy systems.
Specifically, mobile technology expedites the payment collection process, which is traditionally slow and arduous. Delays in payment collection can have serious implications for a business, especially in lean times when profit margins are razor-thin.
If the unprecedented challenges of the last few years have proven anything, it is that logistics and freight organizations must evolve if they want to remain competitive in the modern marketplace. One way of accomplishing that goal is by adopting innovative and reliable mobile payment technologies, but more on that in the next section.
What New Tech Is Streamlining Freight Payments?
In its early days, mobile payments technology was considered to be a fringe solution that was unproven, unreliable, and economically unviable.
However, that time has long since passed as these solutions have burst into the mainstream. Thanks to advances in software, hardware, and internet infrastructure, mobile payments technologies are more accessible and affordable than ever before.
Of the various payment technologies that are available to logistics organizations, mobile card readers are by far the most popular. Mobile card readers are devices that are attached to a cell phone that can be used in conjunction with a mobile app to process payments on the fly.
These readers can be used anywhere that a stable phone signal is available, which makes them much more versatile than traditional payment processing tools.
A particularly useful feature of mobile card readers is their “tap + go” functionality. This setup minimizes the spreading of germs and bacteria as payees do not have to touch the card reader, and vendors do not have to handle the credit card.
Another perk to these cards is that they further expedite the transaction because payees do not have to insert their card or enter a PIN.
Tap-and-go cards rely on near-field communication (NFC) technology. NFC-enabled cards are equipped with an antenna and chip that send a digital token to the card reader so that a purchase can be processed.
In the future, fully-digital payment options such as mobile wallets may be used to make freight payments. These wallets rely on similar NFC technology and digital payment applications that are linked to credit cards or bank accounts. However, this is still a long way off.
For the next few years, expect mobile card readers to be the go-to freight payments solution for organizations operating within the logistics industry.
Which Entities Can Benefit from Mobile Payments?
Virtually any business that operates within or serves the freight logistics sector can benefit from mobile payments, including tow shop owners, heavy-duty repair businesses, warehouses, and many others.
By incorporating mobile payments technology into their revenue cycle management model, these entities can:
Expedite Payment Collection
The most apparent advantage of mobile payments technology is that it expedites the collection process when rendering services in the field.
This flexibility will be especially beneficial for businesses that provide roadside services, such as tow shops and heavy-duty repair companies. These organizations will no longer have to wait to receive payment via Comchek but can instead process transactions on-site.
Stabilize Revenue Streams
Faster payment collection will increase the stability of revenue streams. Once a business goes fully mobile with its payment collection practices, it will be able to forecast weekly and monthly revenue more accurately as there will be minimal collection delays.
Preserve Business Continuity
Better revenue collection and more stable revenue streams will allow businesses to preserve business continuity. They will have increased revenue transparency and can make key decisions based on up-to-date financial information.
Enhance the Client Experience
Mobile payment processing does not just benefit service providers; it will also enhance the client experience. A seamless and efficient payment process will reduce the strain on a client’s drivers and dispatching team, which will make that company more prone to use that provider’s services in the future.
Explore Mobile Freight Technology with RoadSync
Would you like to leverage the power of digital freight payments in order to streamline your revenue-generating capabilities? Want to be able to collect mobile payments at the dock, in the field, or anywhere else your business takes you? Looking for a trusted partner to drive your business forward?
If your answer to any of the above questions is a resounding “Yes, I would!” then it is time to connect with RoadSync. Our suite of technologies can allow you to collect mobile freight payments, create custom invoices at the touch of a button, and access revenue-generating tools. Schedule your free demo today to learn more.