It’s as easy as: ship, pay, click and get the consignment released.
This is, in a nutshell, PayCargo’s service, offered to the global air freight community, as well as shipping lines and trucking companies.
The clearing house, founded 2009 in the USA and now also active across Europe and Asia, facilitates electronic financial transactions between forwarders and ground handling agents, freight vendors, and payers within 30 days – max.
If this intermediary did not exist, it would have to be invented.
Adriaan Reinders, CEO of PayCargo Europe B.V. is a straight-talking man, not fishing for compliments or shoulder patting. His words expressed quietly and precisely, have worth and weight.
Mr Reinders told CargoForwarder Global that in 2019 PayCargo expects to accomplish transactions in the region of three billion USD.
The service provider’s revenues have increased by 100 percent each consecutive year and will do so in future, the CEO predicts.
The expectation is for even more growth since the Coral Gables, Florida-based company has expanded lately by setting up branches in Europe and the Far East, headed by him. A move that is fully in line with market demands, speeding up the delivery of cargo shipments via PayCargo’s patented payment platform, upping their customer’s profitability.
Going global, following the customers
Juan Dieppa, COO at PayCargo’s U.S. HQ states: “In view of our global carrier support, it was time to establish our service around the world in cargo-centric locations. Given the importance of the European freight market, our choice quickly fell upon Amsterdam, The Netherlands being at the heart of it.”
And Adriaan Reinders adds to this: “We are ambitiously growing around the globe and it is only natural to have an Amsterdam base in order to service the local and regional cargo players even better than we could from our HQ in the United States.” He went on to say: “With our European presence, we are showing our customers that we are a serious player in all markets, and they can count on us to expand where and when they need us to.”
Currently, 12,800 payers and more than 20,000 users have registered on PayCargo’s electronic platform with an upward trend. Among them are leading forwarders such as DB Schenker, Nippon Express and Kuehne + Nagel, well-known air freight carriers including American Cargo, United Cargo, Lufthansa Cargo, LATAM Cargo, the U.S. integrators FedEx and UPS, as well as a considerable number of ground handlers, shipping lines and terminal operators.
All financial transactions are processed entirely electronically and encrypted by connecting via an Application Programming Interface (API).
The Automated Clearing House (ACH) transfer is a well proven way to send or receive money online, pushing funds from one account to another, including the exchange of key remittance information between payers and vendors.
“There is no more manual work involved,” Mr Reinders emphasizes. “Payer and vendor are connected on a real-time platform which transmits financial data and information.”
Faster flow of goods at lower costs
This immediate transparency not only improves payment communication but also allows for significant cost savings through automation and standardization, he adds. Hence, administrative costs are reduced such as paperwork, mailing or printing.
Within 30 days transactions are completed, he says, unless there is a financial dispute should the ground handler’s charges differ from his forwarding agent’s files. In case there is a mismatch the participants are given time to settle the differences among themselves within two weeks. “The undisputed receivables will be paid immediately,” he assures.
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