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Vision for FinTech in cargo

CargoAi’s Matt Petot says that in the increasingly fast-paced world of cargo and logistics, it is no longer an option but a necessity to integrate FinTech (financial technology) solutions.
photo_camera Matt Petot

CargoAi’s chief executive Matt Petot says that in the increasingly fast-paced world of cargo and logistics, it is no longer an option but a necessity to integrate FinTech (financial technology) solutions.

At CargoAi, we envision a future where FinTech plays a pivotal role in revolutionising the way the cargo industry operates, but there is still a lot to learn. Traditionally, the cargo industry has been burdened by a complex web of financial intermediaries, paperwork, and time-consuming manual processes. This often results in delays, errors and added costs.

The industry has been slow to incorporate digitisation. While discussions have been ongoing for years, substantial progress was slow until the onset of global digitalisation, and the multiplier effect of the pandemic.

The freight and logistics industry is experiencing a FinTech renaissance. Since 2009, dedicated freight FinTech payment solutions have been in the market to simplify the payment process for faster cargo movement across the globe. With the growth of e-commerce, the need for carriers and shippers to promptly settle transactions became increasingly critical.

Within the realm of freight logistics, these digital payment gateways are spearheading an innovative transformation, streamlining the entire process of shipment delivery and release.

There are six key factors that we believe are crucial in the process of building frictionless and global payment solutions for this industry.

1 – Speed

Freight forwarders shudder to think about shipments held in port due to pending payments – the need for speed is undeniable. With the global exchange of funds amounting to trillions of dollars, the impact of delays in payments directly impacts the timely release of goods. A payment gateway automates the payment process, offering a streamlined and efficient way to handle transactions. Not only does it save time, but we can’t state what a game-changer it is to be able to release cargo within an hour of receiving instant payment notifications.

2 – Accessibility

In the case of traditional banking, limiting payments to business hours can cause significant inconveniences. Payment cut-off times can constrain the ability to provide exceptional customer service and affect business flexibility. These limitations have a ripple effect, particularly since logistics operates across different time zones.

3 – Cost savings

Low-cost solutions can level the playing field by making financial services more accessible to small and medium-sized enterprises (SMEs). This inclusivity fosters competition, innovation and economic growth within the industry.

4 – Transparency

In a perfect world, companies will receive payments that match their invoices in full – a world where you are notified instantly as soon as you receive/send a payment. This transparency ensures a smooth process, aids in reconciling invoices and increases operational efficiency.

5 – Security

When you are handling transactions of thousands of dollars, you want to be sure your money is in safe hands. People are still apprehensive about using digital tools and it’s important to make sure that payment solutions have all the checks in place to manage the risks.

6 – Borderless transactions

The freight industry is global, and yet we don’t have a payment solution that removes the friction in cross-border transactions. Traditional banks take too long and high fees and exchange rates pose added obstacles. We need a global solution to our payment problems.

The goal is to embed these principles into every payment, providing a seamless and efficient experience, making 24/7 instant payments a reality.

Currently, there is no payment framework that allows the transfer of funds to multiple vendors within a secure ecosystem, at a low cost. We are building a solution to help solve this problem.

CargoAi’s CargoWallet is a pioneering payment ecosystem specifically tailored for logistics players to enable instant secure transactions with any vendor anywhere in the world. CargoWallet provides several benefits:

Speed and transparency – Freight businesses benefit from instant payments, real-time notifications and transparency throughout the payment process. This visibility is invaluable for keeping shippers informed and in control of their shipment status.

Seamless across borders – Supporting up to 50 currencies in over 150 countries with debit/credit card and local payment methods, CargoWallet has over 200+ payment methods for any forwarder. Instant payments can be made to suppliers in any country without worrying about high costs, or payment methods.

Cashflow management – Choose from Prepaid 24/7 Instant payments, or Paylater up to 30 or 60 days.

Cost-savings – Users can save up to five times on current payment processing costs (vs traditional payment methods/other FinTech companies).

The adoption of digital wallets and other online payment platforms can help streamline financial transactions. With a few clicks, payments can be made, and records can be instantly updated, thus reducing the risk of errors and simplifying cash flow management. Integrated payment gateways are a sure way to retain customer trust in delivering a reliable service without any bottlenecks.

FinTech is no longer the ‘next big thing’ for the shipping and cargo industry – it is already here, ready to be embraced and integrated into the industry’s core operations. CargoWallet’s advantages make it a cornerstone of the cashless logistics ecosystem, providing freight forwarders with an unparalleled level of financial flexibility and efficiency.

We strive to live up to the commitment to speed, accessibility, transparency and security that drives our vision for FinTech in cargo.

This advertorial feature was first published in Air Cargo Management – November/December 2023. To read the magazine in full, click here.


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