The Wave of Change: Contactless Payment System in the Trucking Industry
From gold to paper to finally cashless, the way we make payments has undergone various changes. The trucking industry, which is mostly in the cash and paper-based sector, is adopting digital payment systems. This change comes as a result of the impact caused by COVID-19 on the global transportation and logistics market. Today, we'll delve into the increasing use of remote payment systems in the trucking industry and its consequent effects.
Contactless Payment System in the Trucking Industry
Contactless payment is a secure method to complete a transaction using a digital payment system that utilizes near-field communication (NFC) or radio frequency identification (RFID). This mode of payment is also known as tap-and-go. A digital payment system includes two components: a point-of-sale (POS) terminal with contactless payment technology and a payment device (a card, smartphone, etc.).
Let's take a quick look at how these systems work. When a merchant has a payment to collect, he enters the requirement in the electronic transaction system. The POS system prompts the payment request. The customer can now bring the card close to the system, and the terminal will process the payment using the electronic transmission of information. Therefore, the customer won't need to swipe or enter a PIN to complete the transaction.
The use of contactless payments is visible in various segments and industries, with the trucking and freight industry leading the revolution. The coronavirus pandemic has adversely impacted the logistics industry across the globe. As a result, there's an evident rise in mobility-based contactless payments for a touchless experience.
Large scale trucking industries run hundreds and thousands of transactions per day. And several transit systems have experienced hefty losses due to increasing costs of safety and cleaning procedures. Hence, transit systems are under immense financial pressure.
Amid such a crisis, virtual payment systems have emerged as a safe point of connection between the suppliers and consumers. Trucking companies worldwide are implementing EMV contactless solutions, and the digital boost is pushing this adoption faster than ever before.
Types of Contactless Payment Systems
The concept of contactless payments isn't new. It dates back to the 1990s, but back then, only a few companies were using the technology. Besides, the technology was underdeveloped and limited to cards only. Since then, contactless payments have come a long way. Here are the different types of contactless payments available now.
Contactless Smart Cards
A contactless payment card utilizes RFID technology to communicate with a payment terminal. Every card comes with a built-in antenna that interacts with a reader. Contactless smart cards fall under three categories: Low frequencies (below 150 kHz), Smart Contactless Frequency (13.56 MHz), and Microwave frequencies (2.45 GHz).
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