MaxxChain Employs Blockchain for Faster Trucking Payments
Web3 platform MaxxChain has introduced blockchain solutions for the logistics sector.
The initiative, announced Friday (Nov. 17), “provides a seamless, transparent, and efficient approach to funding by integrating blockchain, smart contracts, and artificial intelligence” (AI) the company said in a news release.
The solution promises a “secure and immutable data environment,” lessening the risks connected to the traditional factoring process.
“By implementing blockchain technology, MaxxChain aims to eradicate hidden rules and complexities, providing a transparent and trustworthy platform for trucking companies seeking faster payments,” the company said.
The platform also integrates smart contracts into factoring. Once MaxxChain receives completed shipping contracts and invoices from trucking companies, the company records this information on the blockchain with bridged Web2 and Web3 technologies.
Invoices are then fragmented into equally valued tokens or non-fungible tokens (NFTs) within the smart contract and deposited onto a specialized marketplace within the MaxxChain ecosystem.
“Moreover, MaxxChain assumes any remaining tokens or NFTs, providing immediate funding to the trucking company. Simultaneously, a new invoice is automatically generated and forwarded to the broker for payment under the originating terms,” the company said. “MaxxChain collects its share of revenue upon receiving payment from the broker, and the remaining funds are distributed among token or NFT holders based on the initial agreement.”
PYMNTS examined the state of B2B payments in the logistics space last week in a conversation with Pat Dillon, CFO of Flock Freight.
“There has been so much innovation … we’ve seen a proliferation of so many different payment options around things like speed, terms and visibility,” said Dillon, interviewed for PYMNTS’ “B2B Payments: Outlook 2024” series.
The challenge, he added, involves providing a comprehensive dashboard view of these options and customizing payment solutions for individual companies.
“It’s certainly a good problem to have,” he said.
PYMNTS also spoke with Robin Gregg, CEO of RoadSync, about the challenges that come with transacting across supply chains and logistics.
“In many ways,” she said, “B2B payments have fallen behind consumer payments … old-school payment forms are not fast, they’re not efficient, and they also are leaky.”
That’s particularly true in trucking and logistics, where interactions and financial management are complicated undertakings, involving a range of distributors, warehouses, carriers and brokers.
The gap is due to narrowing in terms of payments innovation, Gregg said.
“That’s because business owners, of course, are consumers, too,” PYMNTS wrote. “As they’ve experienced efficient, convenient payments as part of their everyday financial lives, they’ve come to expect the same level of friction-free interactions as part of their professional activities.”
