TCS Blockchain has started using PayPal USD to enable same-day funding and on-chain settlements for trucking invoices. This move aims to resolve cash flow delays that have plagued supply chains in North America.
It will also bring huge cost savings to those who have to wait for long periods to receive payments. The process can save up to 90% in fees and can replace traditional invoicing systems that can leave drivers unpaid for months. The goal is to deliver faster liquidity and reduced fees.
As per the announcement, the funds go through the TCS token on the INX-Republic exchange. After that, they are sent into the PYUSD stablecoin. This creates an on-chain route from invoice rights to digital dollars.
On-Chain Settlement Replaces Costly Factoring Delays
Same-day funding is offered through TCS. This occurs after a carrier completes a shipment and sends in an invoice. Invoice rights are traded on the TCS platform. These tokens can be exchanged on INX-Republic for PYUSD.
TCS later receives the USD payment from the broker or shipper. This occurs when the invoice is due. Instead of waiting weeks or months, the carrier gets paid immediately.
The company also says that some carriers resort to factoring companies to escape the long payment cycles. Factoring companies take huge cuts from the invoices. According to TCS, some carriers lose more than 30% of their net revenue due to this process.
TCS Blockchain successfully settled its first freight invoice on a blockchain in 2022. It has now processed 30,000,000 TCS Tokens in B2B settlements. The company is expected to process more than $1 billion in freight invoices in 2026.
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PayPal Faces Market Shifts Amid PYUSD Adoption
Todd Ziegler, the company’s CEO, says, “With PayPal USD, we are providing greater savings and payment speed for our users.” Ziegler also says, “The integration is a big win for our truckers, freight brokers, and large carriers.”
PayPal introduced PYUSD in 2023, with Paxos as the issuer. It facilitates peer-to-peer transactions using PayPal and Venmo. It used to make payments where PayPal is accepted or to send money abroad with Xoom.
According to a recent report by Bloomberg, Stripe is planning to acquire all or part of PayPal, which has seen its shares fall by over 40% over the past year. At the time of writing, PYPL is trading at $46.38, up 1.65%, according to Yahoo Finance data.
Source: Yahoo Finance
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