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J&T Express elevates user experience through real time payments
Founded in 2015 in Jakarta, Indonesia, J&T Express (J&T) is a global logistics company providing leading express delivery business in in Southeast Asia and China.
In Thailand, J&T is one of the top three express delivery companies in terms of parcel volumes, where it delivers up to 2 million parcels every day and operates thousands of local branches across the nation. J&T’s clientele include retail, small-to-medium enterprises (SMEs), corporates and leading e-marketplaces customers like Lazada Shopee and TikTok.
The Challenge
While online commerce is booming in Thailand, local consumers still have a tendency to pay cash on delivery (COD), creating significant challenges for J&T in the form of manual and time-consuming processes including:
Physical cash collection and reconciliation. For each delivery, J&T’s delivery personnels – also known as “sprinters” – needed to manually collect and count physical cash from the consumer; this needed to be accurately done before they could move to the next delivery. At the end of the day, each Sprinter needed to consolidate cash across the deliveries made and work with the local branch to reconcile the funds against each delivery, which is then subsequently deposited into the respective regional distribution centers via physical visits to the local bank branch.
Manual process associated with merchant payments. Upon receiving the funding report from the bank, each of the thousands of local branches would initiate fund transfers to J&T’s central finance team on D+1 (one day after delivery) to make payments to the relevant merchants within the same day – meaning merchants only received payments one day after deliveries were completed.
J&T sought for an automated solution to increase the efficiency of its processes, while keeping pace with Thailand’s fast-evolving payments landscape.
The Transformation
Partnering with HSBC, J&T modernised its end-to-end collections and reconciliation processes by adopting a combination of real-time payments and API connectivity, to improve the user experiences for its employees, customers and merchant partners, and reinforce J&T’s competitiveness in the market.
At the heart of the solution is the adoption of a dynamic PromptPay QR solution that leverages Thailand’s real time payment network. J&T can now generate a unique QR code for each delivery, embedding details such as transaction amount, parcel tracking number and rider’s ID, to automate reconciliation. Consumers on the other hand, can simply scan the QR code from the sprinter’s device to make cashless instant payments, enabling funds to be credited to J&T’s master account immediately. With HSBC’s real-time credit notification feature integrated via API, J&T’s sprinters and central finance team will receive instant confirmation upon completion of each transaction, streamlining the overall process.
HSBC worked closely with J&T’s teams to ensure a smooth implementation, ensuring all technical aspects of the solution were addressed to go live within a short span of two months. Post-implementation, the bank continues to solicit feedback and enhance its capabilities to support J&T’s growing transaction volumes across payments and collections.
The solution has proven to benefit not just J&T, but also all our customers, suppliers and sprinters. New payment channels have delivered added convenience for our buyers, while enabling our sprinters to speed up and ensure security of cash collection for cash on delivery (COD) orders, subsequently allowing us to pay our merchants (suppliers) in a timely manner.
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The Results
- Over 50% of COD deliveries converted to PromptPay QR, delivering added convenience to consumers
- Speed up turnaround time for sprinters to complete each delivery by 60% by reducing manual cash handling
- Real-time funding of J&T’s accounts to enable same day payments to merchants
- Significant manhour and time savings through improved reconciliation at the local branch, regional distribution and group levels
- Strong client service model to support rising transaction volumes as e-commerce continues to grow
At HSBC, we continue to co-create and pioneer new innovations with clients to future-proof their businesses. We’re pleased to help international commerce firms like J&T Express adopt QR-based PromptPay payments to not only digitalise their collections process, but also promote real time, cashless payments to power Thailand’s digital economy.
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J&T Express is a winner of The Asset Triple A Treasurise Awards 2024 in the Best Payments and Collections Solution category for Aviation / Logistics in Thailand.
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