IN Brief:
- Europe’s logistics networks are becoming more automated, but freight payments remain heavily reliant on fragmented and manual processes.
- Delayed payments, siloed data, and cross-border complexity can create cash flow pressure that affects service levels and supply chain reliability.
- Virtual cards, near real-time payments, automation, and AI can help align financial flows with the physical movement of goods.
By Tulsi Narayan, Executive Vice President, Commercial and New Payment Flows, Europe, at Mastercard
Europe’s supply chains and logistics networks play a pivotal role in everyday life, underpinning the movement of goods across industries and borders.
From warehouse automation to route optimisation, operators are investing in technologies that move products faster and more efficiently. Yet while the physical movement of goods continues to evolve, one less visible but equally critical component still lags behind: the movement of money.
Freight payments, both in Europe and globally, remain heavily reliant on fragmented, manual processes, and the impact is clear. Mastercard research shows that globally, 45% of logistics professionals experience average waits of 30 days or more to receive payments, while nearly 60% of freight brokers still rely on paper cheques. In an increasingly digital supply chain, the adoption of digital payment processes is not keeping pace.
For carriers and freight forwarders, the impacts are also evident. Almost half report cash flow challenges, with many facing payment gaps of more than 20 days. In an industry defined by tight margins and high upfront costs, for example fuel and maintenance, these delays can quickly limit operational efficiency.
When financial delays become operational disruption
Such implications can cause a ripple effect. Ultimately, payment friction upstream can translate into disruption downstream across the entire supply chain. When suppliers face cash flow pressure, it can affect reliability, delay shipments, and impact service levels and relationships. In this way, inefficiencies in financial flows become inefficiencies in physical supply chains.
These challenges are further amplified in Europe’s cross-border environment. Multiple currencies, regulatory frameworks, and banking systems introduce additional layers of friction, reducing transparency and slowing settlement times. As supply chains become more interconnected, the lack of integrated payment infrastructure can lead to bottlenecks and a further disconnect between physical and financial flows.
The issue is not simply about speed, but also visibility and control. Fragmented, manual payment systems often result in siloed data, limiting organisations’ ability to optimise working capital, forecast accurately, or respond quickly to changes in demand. In a sector where agility is critical, this lack of integration represents a missed opportunity.
Closing the gap between goods and money
Advances in automation, artificial intelligence, and near real-time payments can close this gap, enabling faster settlement, streamlined reconciliation, and enhanced security. More importantly, they are transforming payments into a source of actionable data and insights, offering deeper visibility into supply chain performance.
Take virtual cards, which are a powerful tool to modernise payment processes while unlocking richer data.
By generating unique credentials for each transaction, they reduce manual intervention and strengthen security. They can also be embedded directly into existing platforms. Crucially, they provide transaction-level visibility, giving organisations clearer oversight of payment status, spend, and working capital. Virtual cards can also deliver up to 30–45 days of additional working capital float, while supporting faster, more transparent transactions across complex supply chain environments.
For European supply chain operators, the opportunity is clear. Embedding modern payment solutions into existing processes can reduce administrative burden, strengthen cash flow, and simplify cross-border transactions through multi-currency capabilities and built-in compliance tools. More broadly, it enables closer alignment between financial and physical supply chain operations.
As supply chains continue to evolve, collaboration between logistics providers, payment platforms, and financial institutions will be critical to resolving payments bottlenecks. In a sector where efficiency is paramount, how quickly money moves is no longer only a back-office concern; it is becoming a core driver of supply chain performance.
This article originally appeared in the April 2026 edition of IN Supply. Read the full issue here.
