Fleet operators have a crucial role in the global logistics supply chain – managing the movement of goods and services to enable businesses to prosper and consumers to receive their goods on time. Innovation can be essential in helping fleet organizations save time and resources, yet legacy fleet payments have not always addressed major industry pain points, which can demand modern technology solutions enabled by seamless and secure digital transactions.
Challenges the industry faces include fraud caused by persistent use of mag stripe-only cards, failure to utilize new technologies such as tokenization and digital wallet capabilities, opaque pricing and antiquated platforms with outdated user interfaces. Today’s fleet management processes are often still manual, and lack easily deployed controls that can make it difficult to prevent fraud. To put this into perspective, if only three percent of fleet card spend was unauthorized, this would add up to more than two billion of additional costs for U.S. businesses.
Visa works directly with the issuers of fleet cards, whether they are large financial institutions or smaller fintechs. Visa’s Nareg Guregian, director of B2B Fleet Partnerships, reflects on the exciting opportunities to innovate in fleet management and how Visa is positioning customers to thrive in this ecosystem.
What are Visa’s new capabilities for fleet card tokenization and digital wallets?
Nareg Guregian: We are very excited about new enhancements to our fleet cards, such as introducing tokenization and provisioning for mobile transactions. This enables issuers and fintechs to integrate encrypted and tokenized card information into Apple Pay mobile wallets, providing a seamless and secure experience for commercial fleet drivers and fleet managers. We are also working with other digital wallet providers and have some exciting momentum in the pipeline.
An innovative feature of this enhancement is the ability to provide fleet data tags through a default configuration set up by the issuer, fintech or processor. This means that fleet data tags, which were previously tied only to the plastic card chip, can now be dynamically provided during the token provisioning process. Once the token is loaded into the mobile wallet, Visa’s contactless specification allows for token payment data and the fleet data tags to be passed to the point of sale.
Visa’s tokenization capabilities address the pain points of the current manual, and sometimes inconsistent, end-user experience. This enables digital credentials to be pushed into mobile wallets, card-on-file merchants and Click to Pay. This digital experience can reduce the time to issue a card from seven to 14 days with a physical card to just a matter of hours for a push to a digital wallet.
What are two examples of clients who are benefiting from this technology?
Guregian: Coast, a fintech issuing Visa fleet cards, has created a fleet management software platform that includes an innovative UI for easy reporting and monitoring of fleet card spend for business owners. They’ve also created an SMS check-in experience for drivers in the field, which contrasts with the standard PIN-entry check-in experience prevalent in legacy fleets. Overall, the SMS experience has led to easier check-ins and greater flexibility, allowing different drivers to use the Coast Visa card without raising the risk of fraud.
Car IQ is another partner issuing Visa fleet cards in the U.S. What makes them unique is their issuance of Visa credentials directly to the fleet vehicle instead of a driver. This method helps to prevent driver misuse, card misplacement, and fraud. Car IQ has integrated directly with the fuel merchants’ back-end systems to get access to the “enhanced data” from the transaction and customers can then track the spend on Car IQ’s expense management platform. We are also excited to mention that we’re working with Car IQ to integrate into our B2B Payables platform. This integration is meant to create a one-to-many connection, allowing Visa and Car IQ to offer fleet management capabilities to all issuers currently integrated to B2B Payables without the need for lengthy onboarding processes.
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