The future of fleet payments is here. Consistent innovations in the industry have led to significant changes that streamline money flow among multiple stakeholders in the supply chain. They have resolved key challenges in enabling seamless digital payments, zero toll evasions, and reduced fraud, among several others.
Being one of the most thriving markets globally, the fleet management market is slated to hit $52.4 billion by 2027. In India, the industry is heading towards a futuristic upgrade, thanks to the technology deployments and INR 1.34 lakh crore budget allocation for the NHAI (a whopping 106% greater allocation than in 2021). A key driver of this transformation is FASTag, which has redefined efficiency in toll collection and fleet operations.
Let’s take a brief look at FASTag and its role in modern toll collection.
What is FASTag?
FASTag is an electronic toll collection mechanism from the National Highways Authority of India (NHAI) and the National Payments Corporation of India (NPCI). It uses radio frequency identification (RFID) tags affixed on vehicles to make toll payments directly while the vehicle is still moving.
FASTag enables vehicle owners and drivers to leverage the convenience of digital payments to reduce waiting time and fuel wastage at toll plazas and optimize friction-free travel. The past few years have witnessed a constant upgradation on the roadways infrastructure. The National Electronic Toll Collection (NETC) and FASTags have played a crucial role in this transition.
Evolution of FASTag
Fleet was not always the most digitized when compared to other industries. Complexity in fleet payments, multiple stakeholder involvement, and a lack of tech-savvy drivers further led to delayed digital adoption. These discrepancies caused revenue leakage in toll plazas and non-standardized vehicle classification, as cash was involved in toll collection.
To resolve the challenges above and provide people with the utmost convenience of cashless payments, the Indian Highways Management Company Limited (IHMCL) and the NHAI introduced FASTag in 2014.
FASTag Vs. Manual Toll Collection
FASTag has delivered significant advantages for stakeholders throughout the toll payment and collection ecosystem. Here’s how FASTag outperforms traditional manual toll collection across the following key criteria.
6 FASTag-based Fleet Innovations
Fleet payments today are largely pivoting towards digital payments based on cards, UPI, and digital wallets. A central entity is maintained to track and manage telematics/GPS, fuel, and maintenance purchases. So, turning our focus towards the next-gen fleet upgrade is crucial.
The NPCI is now developing novel FASTag use cases within the NETC architecture by utilizing the 50 million tags that have been distributed to vehicles. Leveraging existing payment modes, these initiatives will enable seamless travel experiences, reduce pollution, eradicate toll evasion, and diminish instances of fraud.
Here are six FASTag-based fleet payment innovations, with four already implemented and two set for rollout soon.
1. Multi-wallet Overview
Managing fleet trip expenses requires both precision and flexibility. Fleet operators often face the complexity of tracking costs like tolls, fuel, and maintenance across multiple vehicles, all while ensuring financial transparency and operational efficiency. A robust solution is essential to streamline these processes without compromising control. The QuikWallet platform meets this need by enabling operators to assign multiple dedicated wallets per vehicle, all controlled through a single, intuitive app. Designed to scale effortlessly, QuikWallet adapts to any fleet size—whether you’re handling a few vehicles or a vast network—delivering efficient and comprehensive expense oversight.
2. Parking Fee Payments
As per NPCI’s 2021 guidelines, fleet operators are enhancing FASTag’s capabilities by leveraging integrated telematics to facilitate parking payments at key locations like logistics hubs, urban depots, and commercial zones. By linking FASTag with vehicle tracking systems, parking fees are automatically deducted based on real-time location data, eliminating the need for manual payments and optimizing downtime for fleet vehicles.
3. Location-based Payments
The Global Positioning System (GPS) can enable the tracking of a vehicle and record its entry and exit from virtual toll booths, allowing the user to be charged only for the distance the vehicle travels. With this initiative, there will be no more installation of physical toll plazas and long queues on highways. Traffic congestion would be minimized, enabling free traffic movement.
4. ANPR Technology
Automatic Number-Plate Recognition (ANR) technology uses vehicle number plate readers to rapidly recognize a car at the toll plaza and then deduct the toll fee from the attached payment instrument. The vehicle license plate image is captured as the input, and the associated vehicle details are the output, along with time stamping.
5. Integration of E-way Bills
Law enforcement agencies can use the NETC system to effectively track carrier vehicles and the transportation of products on roadways. They will have access to information about each vehicle’s timestamp and geographic location. Delivery and courier services can also use this technology to update their systems with information on real-time location and give users information.
6. Vehicle Insurance, Documents, and Traffic Violation Challans
To help authorities deal with violations, the NETC system can be updated to feed and retain information about vehicle insurance plans and their validity, registration information, tax payments, pollution control certificates, and traffic violation challans. Constant monitoring of compliance will increase traffic safety and aid in crime reduction.
India is moving towards an efficient and seamless logistics infrastructure, as stated in the National Logistics Policy drafted recently. The target is to bring down logistics costs and create a data-driven decision-support mechanism for an efficient logistics ecosystem. With such targets, the emphasis on innovative API-based tech solutions is going to help transform the fleet payment ecosystem by unifying fragmentation, automating manual redundancies, and managing risk factors.
Visit our QuikWallet website to deploy end-to-end trip expense management solutions, onboard multiple vehicles, and manage fund allocation, expenses, and partner integrations seamlessly.
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