PayCargo, a Florida-based logistics payment platform operator backed by private equity firm Blackstone, is setting its sights on Hong Kong as its “first point of entry into the Asian market,” banking on the city’s status as the largest air cargo hub in the region for its expansion plans.
Partnering with local firm Autotoll International, PayCargo aims to provide secure payment solutions for the logistics industry, streamlining the payment process and expediting the release of imported goods. The collaboration has already seen success, with Cathay Air Cargo Terminal becoming the first local peer to implement the system.
Adrie Reinders, CEO of PayCargo, highlighted the strategic importance of Hong Kong, stating, “Hong Kong is not only the largest air cargo hub, but also a central nexus where numerous multinational businesses have established their regional offices,” making it “the perfect launch pad” for the company.
Morgan Law, commercial director for Asia at PayCargo, emphasized the company’s commitment to Hong Kong, noting that as long as business and transactions are well-operated in the city, they are more than willing to invest further to grow their presence.
PayCargo has secured significant investment, raising US$290 million since 2020, with US$130 million coming from funds managed by Blackstone in June 2022. The company has forged partnerships with over 5,000 logistics vendors, including major carriers such as Mediterranean Shipping, Ocean Network Express, and Maersk.
The adoption of PayCargo’s digital payment platform by Cathay Air Cargo Terminal signifies a milestone in the terminal operator’s digital journey, offering choice and convenience for freight forwarders and their agents, according to Mark Watts, chief operating officer of the terminal operator.
Autotoll’s partnership with PayCargo aligns with Hong Kong’s efforts to promote the intelligent transformation of the logistics sector, as part of the government’s smart city blueprint unveiled in December. Autotoll, which has expanded its services beyond electronic toll collection since 1998, sees synergies in its collaboration with PayCargo to build a business in Hong Kong.
Hong Kong’s focus on digitalization and smart logistics is part of a plan to develop the city as a leading international maritime center. The maritime and port industry is expected to contribute significantly to Hong Kong’s GDP and employment, with the trade and logistics sector accounting for more than a fifth of GDP and employing around one-sixth of the city’s total workforce.
(Source: Loadstar | SCMP)
