Visa launched a pilot project in collaboration with the Airport Authority Hong Kong and Shanghai Commercial Bank to introduce a commercial card-based working capital solution for co-lading.
The pilot, targeted at SME freight forwarders, is expected to make B2B payments more secure and transparent.
The pilot recently completed its first transaction at Hong Kong International Airport (managed by project partner AAHK), the world’s busiest cargo airport, seeing 4% of world air cargo trade pass through it each year.
The initiative introduces a commercial card-based working capital solution to co-lading, where multiple firms consolidate their shipments into one container or bundle to reduce costs. Co-lading is often preferred by SMEs, who may not have the funds or the need to fill an entire container when exporting abroad.
The solution would link payment flows to live shipment data from Hong Kong Airport, provided by AAHK’s Cargo Data Platform, enabling real-time pre-authorised payment flows backed by verified live cargo data. This would increase transparency in cross-border B2B payments, reducing fraud risk and speeding up a process that used to rely on manual reconciliation and was often delayed.
“Together with our partners, we are helping SMEs to unlock liquidity, streamline reconciliation, and gain greater control over cash flow by integrating verified cargo data with financial flows,” said Paulina Leong, General Manager of Visa Hong Kong and Macau. The project would help free up working capital – often a key constraint for SMEs wanting to enter the export market – by giving buyers up to 85 days to pay while ensuring sellers are paid in as few as 3 days.
This is all the more important as SMEs face more and more challenges in an increasingly uncertain global environment, complicated by the recent tariffs and economic turmoil.
“As the banking partner in this pilot, we harness real-time cargo data to verify delivery, facilitating pre-authorised payments by the bank that significantly reduce payment uncertainty and mitigate the risk of cross-border trade disputes,” said Ryan Fung, Deputy Chief Executive, Chief of Retail & Digital Strategy, Shanghai Commercial Bank.
“Access to timely payments and financing has long posed a challenge for co-loading freight forwarders, particularly in the dynamic and multi-faceted logistics sector,” said Rex Lai, Director, Forward by Norman Limited. This solution promises flexibility in sending and receiving funds, visibility, and assurance of punctuality.
“As a freight forwarding company, this solution has significantly reduced our accounts receivable risks by leveraging invoice and flight data to secure payments,” said Raymond Wong, Group CEO, NAF Logistics Group.