What is the potential of FinTech in the logistics industry?
In the last decade, we have seen tremendous potential and a positive impact of FinTech in the logistics segment. While the sector has grown, so has the adoption of FinTech solutions. Right from e-commerce transactions to digitally managing supply chain, the digital payments acceptance graph has been rising. In the logistics space, FinTech innovations have solved the smallest of age-old problems in the industry.
For example, the FASTag mandate managed over a UPI-based payment platform has amplified the adoption rate of FinTech solutions and also helped build an ecosystem where managing tolls and on-road expenses for transporters happen seamlessly. This is also because of the push from the regulators, which necessitated the integration of technology in our digital ecosystem.
How does 1Pay assist in making and collecting payments and managing cash flows?
1Pay is a unified platform that brings together transportation, logistics and the banking industry to create a Neo Banking platform with an aim to digitally unify the Logi-FinTech space. Our goal is to make payments easy in the logistics sector and solve some classic industry problems around success ratios and journey related challenges. For merchants and retailers, typical problems are cash/ledger management, citing of funds, and providing a seamless reconciliation interface.
We analyzed and understood these problems and worked on the demand side of the ecosystem and have been able to wear the merchant’s hat to provide a better solution. At 1Pay, we have developed a flexible and configurable in-house payment system which provides journeys and interfaces for customers/ merchants to manage their CashFlow and Payment Collection Experiences better. Our realtime reports provide the source of funds, and the payout to potential vendors have been eased by a click of a button or by simply uploading bulk instructions on demand. The same solution can be used for various roles and hierarchies to manage cashflow and funds better with an enhanced reporting capability.
With our comprehensive suite of enterprise solutions, 1Pay is able to assist transport companies manage their business lifecycle by providing telematics, payment solutions, banking solutions, insurance aggregation, issuance, acquiring and analytics solutions.
How can 1Pay assist Construction Equipment fleet owners?
On our platform 1Pay, we offer customized payments solutions for fleet owners. They get to avail customized payment and financial offerings in terms of cash flow management, expense management, FASTag management, ease of payment collections, and payout journeys, all under one umbrella. The same can be extended to integrate with ERPs of fleet owners to provide a seamless experience in their user journey. Our fleet management solution simplifies the way businesses manage and pay their expenses.
What are the fleet management features in your App?
In the current fleet management application, 1Pay offers a Mobile App (Android, iOS) and a Web variant which can be used by fleet managers/owners for complete management of FASTag ecosystem. The App allows fleet owners to manage their current FASTag spends, seamless payment top ups/recharge of the FASTag Wallet, seamless dispute redressal mechanism for the transaction, vehicle management, including on-demand change of vehicle status (Inactive/Active).
1Pay aims to focus on ease of dispute redressal mechanism and has hence built a proprietary engine to check potential double debit transactions which provides a great impact to P&L of the transporter in terms of cost savings. Ease of raising a dispute with a single swipe has been built to cater to urgent dispute needs of the transporter. Further, overall ticket and query resolution is catered through the integrated ticketing system. On-demand reports and sharing of transaction specific data via Social Media like WhatsApp is one of the day-to-day features offered to 1Pay customers.
Please elaborate on Automated Dispute Management of 1Pay.
Dispute Management is one of our key metrics for product success. At 1Pay, we use technology innovation to cater to expense related problem statements which provide more proactive measures for this segment which will help them save unnecessary expenses. The dispute management mechanism provided by the regulator has a considerable and cumbersome process involving sharing a lot of data points. Through constant customer feedback and urge of product innovation, 1Pay built seamless UX to provide dispute in the transaction view depending on what kind of transaction it is. For example, a Payment Credit dispute will be treated as Credit dispute while the wrong fare debited will be treated as Dispute to be raised to NPCI.
The ability of the system to learn and provide an interface with prefilled data to avoid the hassle of entering mandatory information manually was one of the ways dispute mechanism queries are addressed. 1Pay then envisaged typical dispute scenarios which are potential debits done twice at the acquiring system. The platform also offers a prop engine to provide a single click interface to identify such transactions and provide a mechanism to raise it via a single click. Also, the customers do not need to validate or get involved in the hassle of creating a dispute, in fact, they can now rely on automated prediction by 1Pay to raise it. Additionally, we are also working to address potential disputes which has a clear impact on revenue and plan to proactively raise it on behalf of the end-user.
What is your current market penetration and do you have plans to expand beyond the Indian subcontinent?
Within the FASTag ecosystem, 1Pay's penetration is more than 6% in the overall vehicle base and over 4% in the transaction volume, and we work in the SME & MSME transporter segment. With the NPCI framework, the FASTag ecosystem manages payments via FASTag for fuel or for parking. OEMs, aggregators, or acquirers are able to seamlessly connect to 1Pay Bridge for initiating a transaction of a fuel. The solution is flexible for any of these systems to integrate and go live with fuel stations using those systems pan India.
The latest stack built by 1Pay is flexible enough to be integrated and has the ability to connect with any third party. Hence, the framework allows 1Pay to work with companies and provide payment solutions to customers outside the Indian subcontinent within the regulator ambit. Moreover, we are planning to focus more on Indian Fleet Ecosystem & Merchant Payment Solutions before entering international markets.