Here’s some good IoT innovation for you… The smart label developed by IoT hardware firm SODAQ, enterprise IoT provider Pod Group, and system integrator Lufthansa Industry Solutions (LHIND) has been picked up by German finance and insurance tech solutions firm Walbing, as the basis for a new supply-chain trading solution that does away with manual paper-based payment processes, and seeks to raise efficiency and transparency in supply chains.
Walbing, founded in 2019, provides an API-suite that operates invoice-to-cash, buy-now/pay-later services, and trade credit Insurance services. It has just launched a new payment tracking solution, called Track & Pay, based on the recently-announced smart label solution from the above alliance – a 2mm thick (“paper thin”) sticky label, featuring a low-power cellular LTE-M (Cat-M) transceiver, a 3D-printed alkaline battery, and temperature and motion sensors.
Hamburg-based Walbing wants to sell its Track & Pay (TnP) service as a “digital alternative to the letter of credit driven by IoT technology” – and therefore to “raise the security bar in trade payments…, simplify the payment process and increase transparency between suppliers and buyers”. It is also pitched to replace paper invoices and cheques in the supply chain, commonly used as proofs of delivery and records of trade.
A press note from Pod Group, owned by the acquisitive German security technology group Giesecke+Devrient (G+D), explains: “The lack of visibility into the status of shipments and payments can make it hard to plan production and financial capacities. Long payment terms can lead to cash flow problems for small businesses and accessing liquidity and working capital can be a challenge for small and medium-sized businesses…
“International trade traditionally relies on letters of credit, a financial instrument that guarantees payment to the seller and delivery of goods to the buyer. While they provide payment security, dependence on their guarantees and bank conditions can add additional complexity and risk to the payment process, further highlighting the need for automation and digitization. To address these challenges and help businesses streamline their payments.”
The smart label solution, based on IoT hardware from SODAQ and IoT connectivity from Pod Group, and software engineering and channel development from LHIND, effectively tracks shipments, including data about the condition of the asset on its journey, and authorises transactions for their delivery. It includes location, temperature, and motion (accelerometer) sensors. It can be applied to any surface, including simple envelopes.
The solution has a battery life of up to six months. LHIND’s LEAP platform takes live (LTE-M dependent) data from the sensors – “so the established payment conditions can be easily checked,” says Pod Group. “The data transmission by the smart label provides increased visibility and control over the shipment process… The real-time tracking helps set a new standard for secure and reliable international trade in the TnP framework.
Joerg Hoerster, founder and chief executive at Walbing, said: “We believe in Track & Pay’s ability to revolutionize the global finance supply chain, offering a much more secure and fraud-proof solution than the common letter of credit. The Smart Label’s slick size, active tracking capacity, and reusability make it a competitive candidate for the selection of trackers we’ll offer to our TnP clients.”
Sam Colley, chief executive at Pod Group, said: “Pod takes pride in its pivotal role in promoting precise supply chain tracking for critical applications, while also eliminating the need for laborious manual processes. This demonstrates how Pod can simplify the deployment of essential IoT applications, by delivering dependable, affordable and forward-looking connectivity.”
