Supply Chain Digitalization
Global e-commerce sales are set to hit $4.2 TRILLION in 2020 and break $6.5tn by 2023. More than 2.1bn shoppers are expected to purchase goods and services through e-commerce in 2021. In the USA alone, by 2023, B2B e-commerce transactions will reach $1.8tn, accounting for 17% of all B2B sales in the country.
As people surge to purchase online due to a combination of pandemic restrictions and ease, logistics growth is surging in kind. E-commerce is the big winner of 2020 and this has meant the need for digital contactless payments.
We have just had Black Friday and Single’s Day; two of the biggest consumer dates in the calendar which rely heavily on digital payment solutions for B2B and B2C markets.
Cash payments and the use of checks have been in steep decline over the last few months, particularly as they have shown themselves to be inconvenient, unhygienic, and drawn out.
PayCargo helped process over $2bn in digital payments in 2019 and we are on track to process $4bn in 2020 as digital payments in the supply chain grow exponentially.
To give an indication of this level of growth, Alibaba’s digital infrastructure handled 583,000 orders per second during peak of activity in Single’s Day, generating $74.1bn in gross merchandise volume, a 26% increase over 2019. Alibaba’s logistics arm, Cainiao Network, processed more than 2.3bn delivery orders in eleven days.
Likewise, Amazon held approximately 45% of the US e-commerce market in 2019 (set to rise to 47% in 2020) and in 2019 US-based SMBs sold more than 4,000 items per minute through Amazon. Amazon had the two biggest days ever for SMB’s across 19 countries, surpassing $3.5bn between 13-14 October 2020 – a year-on-year increase of nearly 60%. The fourth quarter sales for Amazon are projected to be between $112–121bn.
This was possible and achieved through the use of advanced, reliable technology platforms and electronic payment networks that can handle every transaction in the supply chain. Solutions that PayCargo provides.
Today’s shippers want to purchase logistics services in a rapid, seamless, and reliable manner. Today’s customers want swift quotes, simple bookings, to settle invoices electronically, instant data access, and track and trace.
This is where the industry has been heading for a while, and it seems to be gathering pace.
Our recent $35m investment from global venture capital and private equity firm, Insight Partners, is set to catalyse the adoption of our network across the globe and fuel further developments in our market-leading technology.
We have proudly integrated our solutions with numerous global leaders and their platforms for a host of markets and verticals, all of which will benefit from the onset of digital futures and the next evolution of our technology.
Benefactors of the PayCargo system include Kuehne + Nagel, DHL, DB Schenker, BDP, Seko Logistics, UPS, YUSEN Logistics, Hapag-Lloyd, MSC, Ocean Network Express, Alliance Ground, Swissport, Lufthansa, United Airlines, American Airlines, Delta Airlines, Air France, and many, many more.
It has been the case that, stereotypically, the air cargo realm has been slow to partake in the ‘digital revolution’, but 2020 has highlighted the outdated processes and the overwhelming focus from airlines on passengers has given way to cargo for a moment in the spotlight.
We must embrace this moment and show just how essential airfreight is as the world turns towards a new year and higher expectations in e-commerce and logistics.
In 2021 we are aiming to further cement ourselves as the leading global logistics online payment platform of choice and continue to grow our 3,000+ Vendor and 19,000+ Payer network.
We want to service Payers and Vendors across the entire value chain and provide each player with efficient automated payment services that offers transparency, security, and exceptional user experience.