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JPMorgan Payments and Loop Team to Monetize Freight Payments

trucks

J.P. Morgan Payments has launched a partnership with audit/payment platform Loop.

The collaboration announced Tuesday (June 18), is designed to “boost working capital with freight payments,” the companies said in a news release provided to PYMNTS, thus fostering stronger relationships between shippers and carriers.

The release cites data from the American Trucking Association showing that trucking revenues account for more than $940 billion, or 80%, of the U.S. freight bill.

“Yet a tangled legacy network of paper invoices and delayed payments snarls supply chains and drives up costs,” the companies said.

“As shippers push to reconcile invoices, capital is trapped, a dynamic mirrored by their carrier counterparts. While quick pay options have long been accessible to shippers with flexible balance sheets or those partnered with specialized financial institutions, major gaps persist across the supply chain.”

Legacy payments are often late, the release notes, adding friction, hampering carrier relationships, and driving up late fees. Even as the industry digitizes, transparency and compliance in the supply chain are growing issues, with fraud rates increasing.

“This collaboration fills these gaps, ensuring carriers receive payments faster while shippers receive a market-leading financing rate thanks to the enhancements made through AI. Loop’s logistics-AI and automation improve accuracy, speed, and trust, enabling J.P. Morgan Payments to provide capital and payment flexibility with confidence,” the release said.

“Together, the firms are unlocking working capital that propels growth and collaboration across the supply chain.”

PYMNTS spoke last year with Loop Co-founder and CEO Matt McKinney about the challenge of making payments in the logistics industry, where physical paperwork — documents, scanned images, PDFs — presents a headache.

“There is no standardization when you are dealing with a lot of paper, and that creates a ton of problems in itself. But then you combine that with the second problem, which is all these workflows are manual,” said McKinney.

As for the truckers — the folks keeping the supply chain flowing — PYMNTS wrote earlier this week that employers may want to consider offering drivers a faster way to get paid to improve retention amid a national shortage.

According to “Generation Instant: How Truckers Use Instant Payments to Support Their Lifestyles,” a PYMNTS collaboration with Ingo Payments, just 41% of drivers now get their income and earnings delivered via instant payment methods, though 91% of that groups say they prefer the speed and peace of mind offered by instant payments.

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