Supply chain and logistics companies in today’s market already maintain expertise in several areas, such as logistics, delivery, invoicing and digital services. Recent industry surveys indicate that adding and enhancing e-commerce or payments services as part of the end-to-end solution puzzle, reaching out to these companies’ well-established customer bases, could aid an increasing pinch at the margins of supply chain services.
Several logistics outfits in Europe have successfully begun to provide e-commerce services for customers in addition to their other offerings such as traditional mail and package services, web design, customer service, and even insurance — among them Swiss Post and DHL Netherlands. Firms in the United States however, have been more reluctant to branch out.
In a recent blog post for Supply Chain World, Credorax outlined how payments as service offerings might create new business opportunities for logistics companies that are willing to take the initial steps into the world of acting as a payment service provider (PSP). Supply Chain World conducts research to identify emerging trends in the field and shares findings and practical advice for the diverse branches of the logistics industry.
We propose that just three steps are necessary to open this business avenue for established supply chain firms:
- Becoming compliant to ensure credit card data security
- Partnering with a merchant acquiring bank
- Selecting a payment gateway