The global logistics market hinges on one cardinal rule: to remain competitive, accelerating the freight payment processes and releasing the goods quickly is the key. However, over 70 percent of North America’s freight vendors are still using traditional payment methods, i.e., checks and wire transfers, which slow down the shipment process. On one hand, it is a constant struggle for vendors to recognize the payments made by the payers, and on the other hand, payers need accurate information about the payment in order to finalize the delivery to their customers. To overcome these challenges, a group of shipping executives came together with one of the largest payment technology companies, First Data, to build a robust, patented, online, cloud-based payment system called PayCargo.
Headquartered at Coral Gables, FL, PayCargo is spearheading an innovative strategy to make the online freight payments process simpler, quicker, and safer. Through a state-of-the-art payment ecosystem with multiple financing options, dispute resolution, systems integration, email alerting, and reporting capabilities, PayCargo is enabling the smooth flow of cargo by transmitting data and ultimately, payments, quickly from payer to vendor—therefore revolutionizing the freight payment landscape across North America. “We are proud of being the only freight payment company involved in providing commercial payments solution for the sea, air, truck, and rail industries,” says Eduardo Del Riego, PayCargo’s President and CEO.
PayCargo utilizes a simple automated clearinghouse (ACH) payment methodology, to enable large- and mid-sized organizations to access the user-friendly system and make quick payments easily. To settle financial transactions between customers and vendors efficiently, PayCargo has partnered with Cass Commercial Bank of St. Louis. Through the PayCargo system the client can quickly and easily make payments to the vendor. The bank pulls funds from the payer and sends the funds to the vendor overnight, along with a very detailed report in whatever format the vendor requires to input the payment or directly download a remittance file. This results in the cargo being released and moving faster.
Through PayCargo’s online automated payment system, carriers and shippers receive notifications once the payment is made and then the freight vendor can approve the release and finalize the delivery to the customer’s location. In a nutshell, PayCargo assists companies in the global supply chain to reduce operating costs associated with payments made by checks or wire transfers, ultimately increasing profits and improving overall liquidity. According to a study conducted by a major logistics company, the average cost of writing a check or sending a wire transfer is nearly 15 to 27 dollars, plus there could be additional storage charges. To that end, “PayCargo is not only a quick payment solution, but it is also a cost-saving solution for the payers and vendors who make up the PayCargo network,” asserts Del Riego.
To shed more light on other benefits of PayCargo’s automated online payment solution, Del Riego narrates how a North American logistics company was able to create a new process internally for requesting COD or Urgent payments though PayCargo in order to expedite the moving of all of their client’s cargo. They were able to create efficient workflows of permissions among their users to place financial controls within their payment processes. With PayCargo they are able to go to single online platform and make payments to all of the supply chain related vendors and have those payments clearly recognized by the vendors, and expediting the release of the cargo.
PayCargo is not only a quick payment solution, but it is also a cost-saving solution for the payers and vendors who make up the PayCargo network
PayCargo is in the process of expanding its presence across the globe, through strategic partnerships, especially in Europe, Latin America, Canada, and Asia. “With our online payment platform, we would like to be the preferred payment arm in the logistics world, enabling our customers to complete the payment transaction and release of cargo within one hour,” concludes Del Riego.