Visa Partners with ONE to Transform Small Business Funding Needs in Shipping Industry

Visa Partners with ONE to Transform Shipping Financing

Visa Worldwide Japan has announced a significant partnership with Ocean Network Express (ONE), one of the largest container shipping companies in the world. This collaboration introduces a B2B card payment service for small and medium-sized shipping operators via ONE's financial portal, 'ONE Finance'. This innovative approach aims to streamline invoicing and payment processes, enhancing transparency while reducing the financial burden on smaller companies.

Background of the Initiative

The Japanese shipping industry is critical, accounting for over 99% of the nation’s trade by weight. However, it still heavily relies on outdated methods like paper invoices and bank transfers, which can delay transactions and complicate cash flow. These inefficiencies have been aggravated by fluctuations in exchange rates and interest rates, placing additional financial strain on smaller businesses. Due to these challenges, Visa has collaborated with ONE to leverage B2B card payments as a means to foster better financial management and greater convenience in maritime transactions.

The New Value of Shipping and Digital Payments

ONE operates more than 260 container ships, providing services across over 120 countries. The integration of B2B card payments into the Japanese market represents a pioneering step, potentially expanding globally in the future. The adoption of these payments enables small businesses to enjoy greater flexibility with deferred payments, alleviating financial stress. Immediate payment confirmations can expedite the release of goods and documents, promoting overall efficiency in logistics.

Collaboration with the Digital Platform ONE Finance

To enhance its digital transformation (DX) efforts in the container shipping sector, ONE and Visa have conducted workshops discussing the challenges and possibilities of digital B2B payments. The integration of Visa's B2B card payment services into ONE Finance leads to a more seamless and transparent invoicing and payment process. Visa is committed to raising awareness of the benefits of card adoption among shipping companies and facilitating suitable corporate card solutions tailored to their needs.

Operational Efficiency and Risk Mitigation for ONE

This initiative not only supports small businesses but also enhances operational efficiency within ONE itself. By integrating card payment data with accounting systems, the need for manual reconciliation will significantly decrease. Additionally, Visa's payment guarantees will mitigate risks associated with late payments, contributing to a stable cash recovery cycle. As the prevalence of card payments remains low in the shipping industry, this partnership is a significant step towards enhancing service value and attracting new customers.

Comments from Executives

Kenichi Michida, Executive Vice President of ONE, emphasized: "Implementing B2B card payments is a vital step towards relieving the financial burdens faced by our small business customers, providing them faster and more reliable logistics services. We see Visa as a strong ally in this endeavor, with plans for potential global expansion starting from Japan."

Mikihito Matsuda, Head of Visa's Corporate Solutions Division, added: "This collaboration not only supports small businesses with cash flow improvements, but also helps digitize operational processes in the shipping industry. We anticipate expanded opportunities in B2B payments through this partnership."

Visa is dedicated to utilizing its expertise in B2B payments and its global network to enhance the efficiency of payment processes in the maritime industry.

About Visa

Visa is a global leader in electronic payments, connecting consumers, businesses, financial institutions, and governments through transactions. With a commitment to building the most innovative, accessible, and reliable payment network, Visa aims to contribute to the prosperity of individuals and businesses alike. For more information, visit Visa.com or visa.co.jp for the Japanese website.