ENCRYPTED online payments platform PayCargo has created a secure, bespoke version designed for freight forwarder transactions, writes Thelma Etim.
Its adoption will radically simplify the industry’s current paper-strewn daily financial dealings, says forwarders’ body the International Federation of Freight Forwarding Associations (FIATA).
Named ‘Freight-Pay’, the system allows FIATA members – who can register for the service free-of-charge – to create an account to securely send and receive money to and from other members worldwide. The system also reduces costs, whilst providing forwarders with instant visibility and access to transaction data, it is claimed.
Lionel van der Walt (right), global chief commercial officer at PayCargo, explains: “We have worked with FIATA to develop a cost-effective custom online payments platform to ensure their members have access to, and can benefit from, the ongoing digitalisation of the freight payments industry.
“Freight-Pay simplifies transactions and reduces costs in a secure environment, supporting FIATA members to grow their business and improve efficiency and customer service,” he insists. “PayCargo remains focused on leading open-collaboration projects that will benefit the broader industry as we continue to digitise,” van der Walt adds.
The secure payments software, which now has more than 67,000 users, promotes faster cargo release, eliminates inefficient manual processes and reduces penalty fees for delays. It also brings improved transparency, better cash-flow management and streamlined invoicing and account reconciliation, the company says. The cloud-based payments business is currently on track to process $10billion worth of freight-related contactless payments this year – 250 per cent more than in 2020.
Dr Stephane Graber (right), director general of FIATA, observes: “Freight-Pay is meant to simplify the freight forwarder’s day-to-day business and we are excited to introduce this new tool to our members. As we dive deeper into the digital world, we must continue to equip our members with hands-on resources that make their daily practice easier. That’s why we collaborated with PayCargo to develop the Freight-Pay solution, so that FIATA members can have an efficient and secure platform to transfer money among themselves at a reduced cost,” he explains.
In the meantime, the online payments settlement company is currently focused on further developing its technology and digitalisation, whilst expanding global adoption of its payments network for airlines, ocean carriers, maritime ports, ground handlers, freight forwarders and Customs brokers, including within North America and Europe.
PayCargo is also working closely with air cargo-focused technology leaders such as IBS Software, Unisys, Champ Cargosystems, Accelya, Kale and other similar businesses to improve payment options.
Last month, PayCargo received a US$125million investment payment from global venture capital and private equity firm Insight Partners. The second round of funding from Insight came after an initial $35million cash injection in September 2020.
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