DP World, the world's leading port operator, has partnered with Mastercard to digitize payment flows across the port ecosystem, accelerating the digital transformation of global cargo and supply chains, supporting local economies around the world.
This program facilitates access to global trade for SMEs and businesses, leveraging DP World's expertise as a port and logistics operator and Mastercard's leading digital payment technology.
It was initially launched in the Dominican Republic at DP World Caucedo, in partnership with Banco Popular Dominicano's credit cards and the AZUL payment platform, a brand of Servicios Digitales Popular. It will later be implemented in other locations in Latin America and then across DP World's other global port operations.
Global digitalization strategy
This payments innovation will mark the beginning of a new phase in DP World's global effort to accelerate its existing digitalization strategy, maintain the flow of trade, and help businesses navigate the economic challenges posed by the COVID-19 health crisis.
The launch of the port payment digitalization project will allow cargo owners and small businesses to pay their freight-related costs more efficiently and remotely, thus facilitating their ability to participate in global trade.
This access to financing and logistics payment solutions solves a key challenge for business and SME customers, eliminating the time lag in their import and export activities between goods ordered and delivered for sale.
In addition to improved access to responsible credit, the project will provide cargo owners and corporate and SME customers with a new digital application, allowing them to view invoices and make secure electronic payments on AZUL's payment page, significantly reducing paperwork for port users.
International scoop
This collaboration is a world first in the shipping industry. It complements DP World's business diversification strategy from port operator to global trade facilitator, extending its core business to play a broader role in the supply chain and enabling a more diverse range of services and capabilities for cargo owners and demand aggregators.
“This partnership is an important addition to DP World’s digital transformation drive. We are delighted that Mastercard has joined us to enrich our expertise and contribute to our vision of being an enabler of smarter global commerce,” said Morten Johansen, CEO of DP World Caucedo.
"This will help corporate and SME clients, as well as cargo owners in general, in the Dominican Republic gain better access to the global economy and be an engine of economic growth. Our plan is to use the lessons learned from this pilot to expand this partnership to other parts of the world. Therefore, by developing this project, we will be driving economic development globally," he added.
SMEs represent approximately 95% of all businesses in Latin America and generate two-thirds of all jobs. However, their share of global trade as a proportion of the total for Latin America is less than 13% of total.
"Mastercard is committed to making the digital economy work for everyone, everywhere, especially during this time of crisis, where we are leveraging our digital-first technology to help economies adapt to the new normal," said Gabriel Pascual, Country Manager for Mastercard in the Dominican Republic.
Pilot experience in the Dominican Republic
Austria Gómez, Vice President of Banco Popular's Card Department, expressed her satisfaction with this partnership, which "demonstrates Popular's leadership in the local payment ecosystem by making it easier for companies and SMEs to digitalize their port payments through our commercial cards, representing an innovation in the business-to-business payments market."
According to data from December 2019, 84% of Dominican companies do business with Banco Popular. Furthermore, last year, the financial institution's new business client acquisition rate grew by 71%, demonstrating the trust and loyalty of the Dominican business sector toward the financial institution.
Meanwhile, Eugene Rault Grullón, general manager of Popular Digital Services, added that "being part of this initiative endorses our AZUL brand's commitment to serving as an innovative platform that contributes to optimizing payment management in the country. Our e-commerce platform, integrated into this DP World application, is developed with international security and stability standards that will guarantee its success."
