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How to choose the best Prepaid Payment Instrument for your company

Making payments has come a long way from the days of barter. We lived through the age of paper currency and now steadily moving towards a cashless economy. This economy thrives on digital payments through a Prepaid Payment Instrument. PPI plays a significant role in creating a cashless economy. India, in particular, gained great attention for crossing 25 million real-time transactions through PPI. Hence, many see the impact of PPIs in banking and fintech as undeniable. These instruments are mostly pre-loaded cars. Examples of PPIs in India include platforms like Paytm, GPay, gift cards, credit and debit cards. Today’s article takes a look at the types of PPI found in the industry. It also helps you in choosing the right prepaid payment instrument for your business needs. Why be part of the PPI hype train? PPIs are more than just a way to make payments. They are a revolutionary concept that benefits consumers and businesses. There is immense potential for companies to drive sales, increase revenue, and enhance the customer experience through PPI. PPIs officially launched in 2002 and the market grew quickly in the following years. The digital India strategy and demonetization only accelerated its growth. These measures resulted in greater mobile wallet usage, more digital payments, and widespread adoption of UPI transactions. Additionally, the Pandemic accelerated PPI usage. Many people prefer cashless and contactless payments over traditional payment methods. A prepaid payment instrument helps consumers pay for products and services in just a few steps. Now, they don’t have to carry physical cash or sign receipts at PoS terminals. PPIs created a landscape where making payments was quick and convenient. They also came with zero liability features and notable fraud monitoring measures to protect the users. The reasons stated above and more were why PPI transactions in India rose quickly. Statista reports that in 2020 alone, there were more than five billion PPI payments made in India. Years later, PPIs are now becoming the preferred payment method in the subcontinent. Hence, businesses are better off joining the bandwagon or risk getting left in the dust. Benefits of using a prepaid payment instrument for business PPIs can increase sales, profitability, and customer loyalty. Businesses can earn commissions on every transaction made through mobile wallet-enabled prepaid cards. Today, businesses must leverage PPIs to access the massive number of smartphone users back in India. A business that successfully implements PPI can enable numerous features for its users. The PPI reforms issued by the RBI made it clear that everyone must ride the prepaid payment instrument wave and enjoy the rewards. Listed below are the measures announced by the RBI in 2021. These measures came into force on 31st March 2022. ·         PPIS can offer real-time gross settlement and national electronic funds transfer facilities to their users. ·         Interoperability of full KYC (Know Your Customer) PPIs is mandatory. ·         The maximum balance of mobile wallets went from 1 lakh to 2 lakhs. ·         Cash withdrawals enabled for full-KYC PPIs of non-bank PPI issuers. The reforms listed above can level the playing field between banks and non-banks. It can also increase the number of full KYC PPIs and drive greater financial inclusion. Businesses that take payments or remittances through PPI experience many benefits. These benefits include greater customer acquisition, loyalty and retention, long-term profitability, and greater customer lifetime value. Choosing the right prepaid payment instrument for your business Let’s take a look at the fundamentals of PPI before we delve deeper into the subject. Prepaid Payment Instruments PPIs are made-up virtual cards and digital wallets that make it easy to purchase products and more. People can buy services, send money, and transfer funds electronically through a prepaid account. Users can transfer money from their accounts or through other payment instruments. At first, the maximum loading limit is only RS. 50,000 per month. However, after the 2021 RBI monetary policy, the balance limit went up significantly. Now, the maximum loading limit allowed is 2 Lakhs INR. Types of Prepaid Payment Instruments Broadly, PPIs are classified into three categories. Listed below are those categories 1.       Closed system PPIs 2.       Semi-closed system PPIs 3.       Open system PPIs Closed system PPIs Gift cards, smart cards, and loyalty program cards fall into this category. These payment instruments work exclusively within the business that issued the card. Here, customers cannot withdraw cash or purchase goods and products from third parties. Also, closed-system PPIs do not need RBI approval or authorization to implement and issue these PPIs. Semi-closed system PPIs YONO, Mobikwik, Phone Pe, PayTM, Gpay, etc. are among the most famous brands that come under this category. Here, companies or banks can issue these semi-closed prepaid payment instruments. However, they must first get approval and authorization from the RBI before proceeding. PPIs used for mass transit systems and prepaid meal instruments also come under this category. However, these PPIs do not provide features like cash withdrawal or fund transfer. The semi-closed system PPIs can be further classified into three categories. They are ·         Minimum detail PPI ·         Full KYC PPI ·         Loading-only from bank PPI Minimum detail PPI: The only requirements here for the PPI holder are their name and phone number. Additional details like address, PAN card, bank account details, etc. are not required by the issuer. The maximum amount of money a user can load into this category is RS. 10,000 per month Loading-only from bank PPI: The only way users can load money in this PPI is through their bank account and no other means. Similar to the previous type, the maximum amount a user can load into a PPI is RS. 10,000. Full KYC PPI: Here, the PPI holder’s relevant details are gathered and shared. Full KYC here includes gathering information like the name, phone number, address,

10 big misconceptions everyone has about CBDC

In the last few months, we’ve seen CBDC or Central Bank Digital Currency becoming a trending topic. There is a good reason why there is growing interest in this technology. Many countries like India are in the process of creating CBDCs. This move is to shift towards a wider use of digital currency. The end goal of this shift to a digital currency is to fuel financial inclusion and bring efficiency to digital payments. The RBI or Reserve Bank of India put in motion its pilot project for the Digital Rupee. They’ve called it the ‘e₹’. There is certainly growing excitement and anticipation around the Digital Rupee. That said, there are plenty of questions and doubts in people’s minds. These doubts leave room for rumors and misconceptions. This article is meant to dispel the more common misconceptions people have about CBDC. Myth 1: CBDC is a cryptocurrency Perhaps one of the biggest misconceptions people have about CBDCs is that they are a cryptocurrency. This led many to pit the two against each other leading to many cryptocurrency VS CBDC articles. However, a CBDC is a digital currency issued by a central bank. That gives it a legal tender status. The CBDC has the same function as physical money. You can think of it as a digital form of cash. Crypto, however, is a form of community money. Most cryptocurrency is not backed by an official institution. That means they are completely unregulated and prone to market fluctuations. A currency that is valuable one day could be worth nothing the next day. Stablecoins are another type of cryptocurrency. They are linked to a national currency or physical assets to protect the coin from market volatility. The catch here is that the stablecoin providers are private companies with commercial interests. Myth 2: Everyone will have central bank accounts There are various types of CBDC developed in different countries. These types range from token-based to account-based concepts. In many countries, the role of the central banks will be minimal involvement. Commercial banks already have a massive database of consumers and maintain a strong relationship with them. Hence, they are the best choice to distribute the CBDC. Additionally, they come equipped with existing apps that they can update to support CBDCs. Also, they know how to manage the KYC process. Myth 3: The CBDC is based on blockchain technology Blockchain is a powerful technology that works well in certain cases. However, a CBDC is provided by a trusted institution and so, blockchain is not essential here. There is some correlation between the design criteria for blockchain and CBDC. Specifically, how some designs can be met by blockchain and distributed ledger technology. However, many more criteria are difficult to achieve. The harder criteria include securing consecutive offline payments, ensuring the highest resilience, and balancing privacy versus transparency. Suffice it to say that while blockchain is powerful, the CBDCs being developed do not utilize this technology. Myth 4: Banks can track every CBDC payment Digital payments in today’s world involve disclosing personal data to a payment service, merchant, or provider. One of the goals of a CBDC is to ensure complete anonymity up to a specific threshold. This approach is similar to how things are done with cash. The idea of balancing privacy versus transparency is one of the biggest sticking points to developing a widely accepted CBDC. Privacy and CBDC must go hand-in-hand to become a success. Banks must find a way to ensure user privacy while also meeting the necessary compliance requirements. That way, the CBDCs do not become a pool for tax evasion or money laundering. Myth 5: CBDCs are a risk to financial and monetary stability Perhaps the biggest misconception people have about CBDC is that they are a risk to the economy without the proper monetary policy. The process of introducing a CBDC is not as simple as people believe. An in-depth analysis is required to ensure there are no unintended side effects. To reduce these risks, a carefully designed CBDC solution should resemble physical cash. That way, everybody involved in the financial system from top to bottom keeps their existing roles. Many people imagine that when a CBDC is introduced, there will be a drastic shift of deposit money into CBDC. The best way to overcome this problem is for commercial banks can provide a digital wallet, and exchange services, and limit the amount of CBDC an individual can hold. This approach is one of many central bank innovations to protect the economy. CBDC solutions should give the private sector options like the ability to be interoperable with other technologies. This approach enables companies to create innovative solutions for specific purposes. Myth 6: People without bank accounts cannot get a CBDC Approximately thirty percent of the world’s adults do not have a bank account. These people cannot participate in the digital economy and enjoy the benefits it provides. One of the objectives of CBDC is financial inclusion. That means allowing everyone to become part of the digital economy. They no longer have to worry about requirements like a bank account or a smartphone. CBDC and the global financial system are working towards enabling even the poorest members of society to use and benefit from a CBDC. We’re already seeing CBDC pilot programs take place in sub-Saharan African countries. Myth 7- An internet connection is required to pay with CBDC A CBDC is a legal tender and payment must be ensured at any time. This requirement applies to areas without network coverage or an internet connection. It must also function when the power is not working, like during a power outage. Many banks are exploring ways to enable consecutive offline payments. This approach ensures that anyone, anywhere, and anytime can make digital payments without fail. Myth 8- A CBDC is just a new version of digital payment The current digital payment schemes either require a subscription, a bank account, credit card, or impose fees. Additionally, not every merchant accepts every

Image of a person making payment using a card to denote neobanks vs traditional banks

What is the difference between neobanks vs traditional banks?

Understanding the infrastructure of neobanks vs traditional banks Traditional banks provide customers with the convenience of in-person transactions and services, whereas neobanking platforms operate entirely in the digital space, often known as “digital banks” or “challenger banks”. No physical branches exist for these online banking platforms. One of the key differences in neobanks vs traditional banks is that, unlike traditional banks that store data across various systems that limit accessibility, neobanking technology employs cloud-based systems to provide a streamlined solution that allows both banks and customers to share and analyze information with ease. What are the different types of traditional and neobanking services? Traditional banking institutions offer a wealth of services, like mortgages and loans, credit cards, investments, insurance policies and financial guidance. These services can be accessed through the bank offices, branches and ATMs. On the other hand, Neobanking services are available through both mobile apps and web-based platforms, providing customers with the convenience of accessing their finances on-the-go. Neobanking platforms offer a range of services, from conventional deposit accounts and loans to budgeting tools, cashback rewards programs, investment options, and cryptocurrency trading options. Pros and Cons of neobanks vs traditional banks There are a number of advantages and disadvantages with neobanks vs traditional banks based on certain factors including services, security, cost, customer service, personalization and processing time. Traditional banking vs neobanking: Which is better for you? When assessing your financial requirements, it is crucial to think about whether traditional banking or neobanking is the better option to handle your finances. Although traditional banking has a long history, neobanking is rapidly gaining popularity as it provides contemporary and efficient solutions suitable for the current digital landscape. If you require complex financial services and assistance from a banking representative, then traditional banking could be the perfect solution for your needs. However, if convenience is your priority, and you desire access to advanced financial tools with a digital ecosystem in a single platform, neobanking services will likely be more advantageous for you. Let’s Wrap Up! Traditional banks offer the advantage of in-person services, while neobanking platforms provide customers with a completely digital experience. Banks offer services including mortgages, loans, credit cards, investments, and insurance, while neobanking platforms provide similar options including budgeting tools, rewards programs, investment opportunities, and even cryptocurrency trading. Choosing between neobanks and traditional banks can be a difficult decision, as both offer their own distinct benefits and drawbacks. When making your choice, look into the services, security, cost, customer service, personalization and processing time. Axlerate is a unified platform for Logistics management, payments and services. Our solutions help to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services.

Image of a person making an online transaction to denote neobanking services.

How Neobanking services are changing the future of financial management?

Understanding the basics of Neobanking Neobanks are technologically advanced FinTech companies that offer convenient online banking services without traditional physical branches. Neobanking is revolutionizing the financial landscape, allowing customers to access a range of digital services from one secure platform. Over 8,000 banking customers surveyed by Capgemini revealed that 75% of them would be more inclined to FinTech competitors that offer neobanking services due to their fast and affordable services as well as accessibility and simplicity. While global neobanks cater to all individuals, neobank for business is gaining popularity owing to its features and convenience.  What services does a Neobank offer? Fintech neobanks offer customers a comprehensive range of financial services, making it simple for them to handle their funds efficiently. Customers can utilize neobanking to manage a wide range of financial activities, including transferring money, paying bills, investing, exploring loan options, and setting up savings accounts. Moreover, customers can also access budgeting tools, analytics dashboards, and some global neobanks even provide insurance or cryptocurrency services. Using neobank for business will be highly efficient to streamline financial management.  How can Neobanking services benefit customers? Why should you consider Neobanking services for Logistics? The logistics industry is a complex payment ecosystem that involves multiple players. From fleet managers and truck drivers to suppliers, customers and owners of the business, they all involve in various financial transactions, spanning from everyday administrative duties to operational and delivery-related payments. Streamlining the payment process in logistics can be a hassle, but utilizing neobank for business will be the ideal solution. Neobanking services for logistics can offer innovative financial solutions that deliver greater speed, security and visibility. By eliminating the need for multiple platforms, logistics companies can simplify their payout process and easily make payments to vendors, employees, customers, and partners from a single location.  Let’s Wrap Up! Fintech Neobanks leverage technology to offer a range of convenient online banking services without the need for a physical branch. This includes transferring funds, investing and loan options, as well as creating savings accounts with access to an analytics dashboard and other features. Neobanking services benefit customers by providing cost-savings, accessibility and security. Utilizing neobank for business transactions and financial management especially for logistics, helps to streamline payouts from a single platform.  Axlerate is a unified platform for Logistics management, payments and services. Our solutions help to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services.

Image of a person making digital payments to denote digital payments awareness week

DPAW 2023: What you need to know about digital payments awareness week?

An overview of India’s digital payments infrastructure India already has a comprehensive digital payments infrastructure in place that can be accessed by a majority of the population, however, in order to maximize its capacity and reach more people, greater awareness is essential. That is why digital payments awareness week (DPAW) is of prime importance. For instance, the Bharat Bill Payment System (BBPS) has revolutionized the way bills are paid, by completely shifting from using cash or cheque to a more efficient digital payment process where all major payments can be integrated on a single platform. On the other hand, the National Electronic Toll Collection (NETC) System has revolutionized the way toll payments are made, allowing for a seamless transition to cashless payments. Moreover, The National Automated Clearing House (NACH) system has also revolutionized Government Direct Benefit Transfers (DBT), allowing for quick and secure digital payments. Why is digital payments awareness week important for India? Embracing digital transactions in India would dramatically reduce the costs and risks of handling cash and make it easier to access online transactions with full visibility. Therefore, the need for digital payment awareness among citizens is crucial to progress towards a digital economy. The Digital Payments Awareness Week (DPAW) is commemorated every year to promote the adoption of digital money transfer across India.  According to the report released by the Governor of RBI, since December 2022, Indian payment systems have been processing over 1000 crore transactions every month which indicates a remarkable increase in the country’s digital economy with cashless payments. However, despite the rapidly shifting trend towards digital payments, a recent survey across India involving 90,000 citizens revealed that only 42% of those surveyed have adopted a digital payment process.  What are the goals of the digital payments awareness week campaign? The theme of Digital Payments Awareness Week (DPAW) 2023 is to “Adopt digital payments and also teach others”. In order to achieve the goal, banks and digital payment companies are planning promotional campaigns to educate citizens about the existing digital payment services. Moreover, as part of the ‘Jan Bhagidari’ (people’s participation) events, Regional Offices of the RBI will also be involved in outreach initiatives. Also, in order to commemorate 75 years of independence, the Reserve Bank has launched a ’75 Digital Villages’ initiative which will provide access to secure digital payments by collaborating with Payment System Operators. How can the logistics industry benefit from digital payments? The logistics sector is a complicated network of owners, fleet managers, truck drivers, vendors and customers who all rely on payments for various expenditures ranging from administrative expenses to operational costs or delivery charges. Therefore, streamlining payments in transportation and logistics can be tedious, yet absolutely essential. In order to counter this challenge, adopting a digital payment process or in other words, cashless payments will be the ideal solution. Digital money transfer not only gives you a more detailed and comprehensive overview of your expenditures, but also safeguards against any unauthorized transactions.  There are a number of digital payment companies that can streamline transactions in logistics, however it is important to find an integrated platform for payments in logistics. For instance, Axlerate is a Fintech company focusing on the logistics ecosystem that enables digital payments and seeks to unify all financial information and transactions through a single platform. Let’s Wrap Up! In India, transitioning to digital payments would not only significantly reduce the costs and risks associated with handling cash but also offer better visibility. Though the country has a comprehensive digital payments infrastructure that is accessible, increased awareness is necessary to facilitate the adoption of digital money transfer. In order to achieve this goal, the digital payments awareness week (DPAW) is commemorated every year with the aim to help citizens transition to a digital payment process. While many banks and digital payment companies streamline transactions, it is important to find an integrated digital payment platform. Axlerate is a unified platform for Logistics management, payments and services. Our solutions help to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services.

Image of a person using a mobile phone to denote the option to create online payment links

Why should you create online payment links to collect payments in Logistics?

What are payment links and how do they work? Payment processing is a tedious task when it comes to receiving payments as it involves transaction delays owing to complex payment methods. However, collecting payments via links and QR codes is gaining popularity recently as it proves to be efficient and simple. Logistics owners and fleet managers can create online payment links and share it through email, SMS and social media channels to request payment from customers. The customers can click on the link and make payments using multiple options including debit and credit cards, UPI, net banking and more.  Why should you use payment links to collect payments in logistics? In an industry like Logistics where a number of people are involved in the process of delivering shipments within strict deadlines, it is crucial to receive timely payments to ensure a seamless process. Therefore, circulating cash or using multiple equipment for card payments may not prove to be efficient in times of pressing need. Alternatively, payment links provide a simple solution to collect payment via links. There are a number of benefits of creating online payment links including payments with a website, multiple payment options and instant notifications. Depending on the service provider, you can customize the payment link according to your brand including the logo, colour, footer, configuration and custom fields.  Benefits of sending payment links to customers for logistics? How to create payment links and send it to customers? Let’s Wrap Up! Payment processing in Logistics is a tedious process as a delay in payments can disrupt the entire shipment delivery process. Payment links provide a simple solution to receive timely payments with the option to create payment links online and share it with customers via email, SMS and social media channels. There are a number of benefits of using payment links including getting paid without a website through multiple payment options and getting notified instantly. All you have to do to create a payment link is to create an account with a service provider, submit the KYC documents, fill the required fields in form and generate the link.  Axlerate provides a unified digital logistics management platform with transportation management solutions to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services.

Image of a person scanning a QR code to denote QR code payment systems for logistics

What you need to know about QR code payment systems for logistics?

Understanding digital payment systems in logistics Digital payment systems in logistics are of primary importance as most of the transactions are required while commercial vehicles are off premises. Moreover, carrying cash is not advisable as it is often prone to theft or manipulation and even paper receipts and reimbursements are quite chaotic to handle. An integrated digital payment ecosystem including direct account transfer, payment links and QR code payment systems for logistics provide a seamless transaction process. What are QR Code based payments and how do they work? QR codes used for payments resemble a square grid with codes that are linked to a bank account. The QR code for money transfer can be scanned using a mobile phone to make payments. The merchant name or bank account details are mentioned while scanning the code. There are two types of QR code mobile payments currently in use – static and dynamic. Why should you use QR Code for money transfer in logistics? There are a number of benefits of using QR code to accept payments in logistics. It is a cost-effective and time-saving solution as it does not require a physical card to carry or to receive sensitive debit or credit card information from truck drivers, owners, managers, shippers and customers who make transactions at every stage of the shipment delivery process. How AxlePay can help to streamline payments for logistics? In the logistics industry there is an ever increasing need for an integrated bill payment system. AxlePay is an online payment gateway to streamline transactions in logistics. All payments can be integrated on a single platform through payment links and QR Codes for money transfer. Logistics Owners, Fleet Managers and Truck Drivers can receive, manage and distribute payments without any hassle by using AxlePay. Moreover, payment status and history can be accessed in a user-friendly dashboard. Let’s Wrap Up! In a decade where digital transactions are becoming the most preferred method of payments, QR code payment systems for logistics provide simple integration, secure data and the ability to save on operating costs. Logistics owners, fleet managers and truck drivers can either use static QR code mobile payments or dynamic QR code based payments according to their convenience for single or multiple transactions. AxlePay provides a comprehensive payment gateway to create payment links and generate QR codes for money transfer along with expense tracking features in order to streamline transactions. Axlerate is a unified platform for Logistics and transport management, payments and services. Our solutions help to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services.

Image of a person making card payment to denote integrated bill payment systems

Why are integrated bill payment systems important for Logistics?

How are payments processed in the logistics industry? The logistics industry involves payments at varied levels to multiple people either on or off premises. Logistics owners, fleet managers, truck drivers, suppliers and customers exchange payments for administrative, operational or delivery purposes. Managing payments in logistics can be a time-consuming task. While certain improvements may be implemented to streamline the process, an integrated bill payment system provides greater speed, security and visibility when it comes to making payments. What is an integrated bill payment system and how does it work? An integrated bill payment system allows for multiple payments on a single platform through multiple payment methods using credit/debit cards, UPI, bank transfer, payment links, QR codes and more. The payment information is well documented in the form of instant notifications and payment history that can be accessed through the dashboard on the web or mobile app. There are a number of benefits of payment gateway integration services including a one-stop destination for all the payments involved in the business. Why is it important to have an integrated payment system for logistics? Traditional payment methods are often prone to error and manipulation besides being time consuming and involving heavy labor costs. Moreover, there is a lack of visibility and provision to streamline payments in real-time. Therefore, it is crucial to optimize payments in logistics with technology. One of the major ways to streamline payments is through online payment integration where logistics owners, fleet managers and truck drivers can have full control and visibility over expenses and prevent unauthorized transactions. Recently, in the National Logistics Policy 2022, the Indian government planned to implement the Unified Logistics Interface Platform (ULIP) where all services related to logistics can be accessed through a single portal. In such a case, an integrated bill payment system is also a major necessity to unify all transactions on a single platform. 3 benefits of using integrated payment systems Let’s Wrap Up! Payment processing in the logistics industry using traditional methods is a time-consuming process and lacks real-time visibility. The National Logistics Policy 2022 proposed the need for a Unified Logistics Interface Platform (ULIP) which will invariably require an integrated bill payment system. Integrated payment solutions will provide unified management, enhanced security and consolidated reports.  Axlerate provides a unified digital logistics management platform with transportation management solutions to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services.

Image of a glass full of currency notes and coins to represent costs involved in logistics

How to manage costs involved in logistics with technology?

What are the types of costs involved in logistics operations? Expense management in logistics is a tedious task owing to the complexity of the industry that involves both expenses within the firm and on-road expenses while delivering shipments. The costs involved in logistics revolve around the invoice expenses, operational expenses and risk mitigation expenses. Why is managing logistics expenses challenging? Increasing costs is a major challenge recently in the logistics industry. According to a study, 44% of fleet managers say increasing costs is a top challenge (Source: G2 Tech Marketplace). Moreover, payment processing in logistics is often time-consuming and prone to error owing to the enormous amount of paperwork and manual processing of invoices. According to a study,  49 percent of fleet managers spend 1.5 to 2 hours on invoicing (Source: Netradyne).  Also, limited payment options are a major challenge. It can be difficult to make on-road payments when drivers only have cash or lack an exact amount of money, especially in an economy that is rapidly becoming digital. It might also lead to theft or misuse of cash if there is a lack of real-time visibility.  How to manage costs involved in logistics with technology? As mentioned earlier, there are multiple logistics expenses that need to be streamlined efficiently. However, unified payment services with online bill payments, spend control and real-time visibility will be the best solution to manage costs involved in logistics. Let’s Wrap Up! Expense management in logistics is a time-consuming and complex process as it involves managing payments within the premises as well as while on the road. The costs involved in logistics include invoice expenses, operational expenses and risk mitigation expenses. However, unified payment services with online bill payments, spend control and real-time visibility can help with efficient payment processing and cost management in logistics. Moreover, implementing technological solutions for cashless payments, financial assistance, preventive maintenance and fleet management will increase efficiency and aid in cost reduction.  Axlerate provides a unified digital logistics management platform with transportation management solutions to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services.

Image of two people disagreeing over an invoice to denote commercial fleet invoice

Money matters: Understanding commercial fleet invoice processing disputes in logistics

Understanding commercial fleet invoice processing disputes An invoice dispute is a major challenge faced by businesses or commercial organisations of all sizes where a customer or client disagrees with the charges and therefore, refuses to make payment. Commercial fleet invoice disputes can arise from human error in terms of accounting, misunderstanding, or when your customer does not have enough funds to pay.  It is quite common for businesses to have disagreements over invoices, but if they are handled with relevant contracts along with billing and invoicing software, services and systems in place, such disputes can be quickly and efficiently resolved. Why is invoice dispute a challenge in logistics? Commercial fleet invoice disputes in logistics are a major challenge owing to the number of parties involved and the complexity of operations. There are a number of challenges in managing freight invoices and payments. A study mentions that 49 percent of fleet managers spend 1.5 to 2 hours on invoicing (Source: Netradyne). GoComet, a multi-modal logistics platform reveals that 75% of logistics leaders say most freight invoices do not match the final quotation. Thus, the logistics industry suffers a great deal due to continual shipment issues that can cause huge losses. 4 Invoice disputes that could be costing you money Technology as a solution to invoice disputes in logistics Traditional invoice payment systems lack transparency, often result in accounting errors, and take an unnecessarily long time to process transactions. So, the best way to optimise cash flow and reduce time wasted on invoice processing in logistics is by switching to automated billing or invoice processing software, platforms or systems offered by technological advancements. It becomes easier, faster and more efficient to manage commercial fleet payments without losing receipts, handling enormous amounts of cash or making double payments. How Escrow Services can help settle commercial fleet invoice disputes? Having a formal contract or agreement in place for all business transactions is crucial. These legal documents can help resolve invoicing disputes quickly and efficiently. However, it is not always possible to keep contracts in place as it involves a lot of time and enormous amounts of paperwork. Fortunately, escrow services can be utilised for secure invoice processing in logistics.  An escrow service acts as a mediator between two parties who make a transaction. It negotiates, secures the funds and ensures the delivery of products or services to the customer and the payment to the concerned party that provides the products or services. An escrow service helps with quick fund disbursement and prevents fraud.  Let’s Wrap Up! Managing commercial fleet invoices and payments is a complicated task that involves enormous amounts of paperwork and loss of time and is often prone to errors and disputes. Invoice disputes usually occur due to miscalculations while processing, pricing inconsistencies, payment constraints and product dissatisfaction that leads to negotiation or withdrawal of payment. However, invoice disputes can be handled efficiently through automated billing or  invoice processing software, platforms or escrow services. Axlerate is a fintech platform for logistics that helps you simplify invoice payment management systems for logistics payments to provide uninterrupted cashflows through QR codes, payment pages, links, invoices and web integrations.

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