How digital fleet payments provide a competitive advantage
For years, Standard Bank has blazed a trail in business-to-business fleet payments, and now we’re doing it again with the launch of our next-generation Visa Fleet Card. By Justin Thomas* Head of Fleet Management at Standard Bank
Take a moment to consider the role advanced technology plays in enabling your company to operate and compete in today’s landscape. Now, picture trying to get by with antiquated tech from the late 1970s. Who would willingly choose to do that? Well, non-Standard Bank fleet customers using outdated magstripe card technology.
A fundamental difference
Switching from a magnetic stripe (magstripe) card to its more sophisticated chip-and-PIN successor offers more than just enhanced security and expanded payment capabilities – it fundamentally alters your ability to manage and optimise your fleet.
That’s why, as a solutions-driven, customer-centric and digitally-led organisation, Standard Bank launched the country’s first chip-and-PIN Visa Fleet Card back in 2021 and remains the only bank to provide this offering in South Africa.
A tale of two customer outcomes
Let’s consider the impact that adopting chip-and-PIN payment technology can make on your fleet operations:
Day-to-day fleet payments
- Magstripe cards are restricted to fuel, maintenance and toll purchases, whereas, the encrypted chips on our Standard Bank Visa Fleet Cards are programable, allowing for payments for a wide range of fleet-related expenses such as towing, fines and licensing.
- By ringfencing permitted payments and providing flexibility to select your chosen spending categories and control all limits, our Fleet Cards solve the risk and hassle of handing drivers cash or credit cards to pay for fleet-related non-fuel expenses.
Fraud management
- Magstripe cards are handed to an attendant to swipe for payments making them more vulnerable to card-cloning and skimming, whereas our contactless payment Visa Fleet Cards remain in the cardholder's possession and require a PIN code for every transaction, so even if the card is lost or stolen it cannot be readily used.
- Additionally, unlike magstripe cards, each Visa Fleet Card payment is tokenised and can only be processed once, prohibiting the reuse of the same data in unauthorised transactions.
Cross border capabilities
- Magstripe cards cannot be used cross-border, so are substituted with cash or credit cards which adds risk and complexity.
- Our Visa Fleet Cards simplify the challenges of cross-border trade and transport by handling all vehicle-related expenses with built-in currency conversion.
Reconciliation
- Standard Bank customers are issued vehicle-specific Fleet Cards for each dedicated driver for accurate data on running costs. This makes reconciling fleet expenses against vehicle routes and trips easy, improving your ability to track spending and running costs.
Data analytics and business intelligence
- Because our Visa Fleet Card usage is integrated with our industry-leading Fleet360 online platform, clients can view statistical reporting on every vehicle’s transactional data, maintenance trends, fuel spending and more for informed decision-making and fleet optimisation.
- Magstripe cards offer none of these advantages.
Transaction fees
- Finally, clients paying with our new Visa Fleet Card can enjoy reductions on transaction and admin fees of up to 70% compared to regular magstripe card tariffs.
The road ahead
We remain committed to increasing customer value and solving real-world problems in the fleet payments space through ongoing innovation.
We look forward to unveiling additional features in the future, including multi-factor authentication, connected car payments, and tokenisation to further broaden transaction channels and enhance security and convenience.
Visit www.standardbank.co.za/fleet for more details on our fleet management solutions or email [email protected]
*Justin Thomas is an Executive Head at Standard Bank Group, currently leading one of the most diverse business units (Fleet Management) in the financial services industry. With more than 20 years of experience in vehicle and asset lending, transactional payments, and fleet services, Thomas has developed a comprehensive and nuanced understanding of market dynamics, customer needs, and regulatory challenges in this sector. He holds a master’s degree in digital business from Wits Business School and completed the Executive Development Programme at UCT GSB.