Industry Insight: fuel cards

With the UK’s air quality strategy looking at ways to do-away with old polluting diesel vehicles, we ask our fuel card experts if they have seen a decline in diesel usage and a shift towards cleaner fuels

Only five days into 2017 and the media was filled with headlines that London had already breached its air pollution limits for the year. This is due to the amount of nitrogen dioxide (NO2) pollution in the air, which it is now recognised as produced largely by diesel vehicles.

In a time where fossil fuels are recognised as having a negative impact not only on the environment, but public health, have our fuel card experts seen a shift in the choice of fuel for fleet customers?

Andrew Goodwin from Certas Energy believes that while these recent reports have “kicked businesses into action to consider alternative energy and fuel types, diesel still needs to play part of the fuel equation as we are not yet in a position to solely rely on renewable energy.”

Certas Energy’s alternative fuel offering is Shell’s Gas-to-Liquid (GTL) fuel, which is a ‘paraffinic fuel’ that is “proven to lower levels of NOx by up to 40 per cent, and particulate matter by up to 90 per cent compared to conventional diesel,” Andrew Goodwin explains.

Charlotte Lecoutour from AS24 is seeing more and more companies move to cleaner sources of energy, and the company is responding to this change by offering Natural Gas for Vehicles (NGV), and opening several gas stations in France this year.

Gertjan Breij from DKV agrees that the revelations around diesel has raised the public awareness for alternative fuels. However, he adds: “Until diesel alternatives are established, companies keep searching for other practical solutions to improve their ecological footprint. DKV noticed this demand and developed the DKV Card Climate.” This card allows users to offset their carbon emissions through funding certified carbon projects around the world.

Peter Dore from WEX Europe Services says that their firm is always looking for ways to help businesses reduce pollution but that at the moment, they have not seen a decline in diesel usage.

Operating in Clean Air Zones

At the end of 2016, the UK Government lost its legal battle over levels of air pollution, with the ruling calling the government’s plan to tackle air pollution “woefully inadequate”.

The UK has been given a July 2017 deadline to come up with a new air quality plan. This is likely to include Clean Air Zones in major cities which may charge the most polluting diesel vehicles to enter certain areas. London is already confirmed to have Ultra-Low Emission Zones from 2019.

So what impact will this have on fleets operating in city centres?

“There is a general feeling that businesses are underprepared for the implications of initiatives such as Clean Air Zones,” comments Andrew Goodwin from Certas Energy. “Fleets operating in city centres need to act now to prepare for the introduction of Clean Air Zones and Ultra Low Emission Zones. The ability of these businesses to demonstrate their clean air credentials will be essential if they want to continue to win contracts and do business as normal.”

Gertjan Breij from DKV predicts that city logistics, especially last mile deliveries, will have to change their operations to include “sustainable transport solutions such as e-mobility.”

Charlotte Lecoutour from AS24 believes the main impact on fleets will be financial, due to “either an increase in the costs for these companies having to pay to operate in Clean Air Zones, or a need to modernise the fleet with the most recent vehicles.”

Peter Dore from WEX adds that: “Each of our customers will need to assess how they will react to any revised changes brought into law. We will be helping them where possible to understand what any impact could look like.”

Andrew Goodwin from Certas Energy explains that Shell GTL Fuel that the company offers can be integrated with both new and older on-road diesel engines, without needing to modify the engine or equipment. He believes that these sorts of immediate solutions are a good way of tackling air pollution now before other alternatives become fully viable. He says: “Transitioning to cleaner burning fuels that require no additional infrastructure or investment may not be a stand-alone solution, but with data to show the significant in-roads that products like

Shell GTL Fuel can make in reducing NOx, PM and even noise levels, it’s a proven starting point.”

Payment security

In the digital age we trust our personal information to be electronically stored and transmitted, but this comes with security threats. How has the fuel card industry responded to such threats such as fraudulent use and cyber security?

Andrew Goodwin from Certas Energy says: “The fuel card industry as a whole is fortunate that it is inherently more secure than other payment methods as fuel cards are restricted to a small number of products, there is less scope for misuse. However, it does increase the importance of developing controls to protect businesses against fraudulent transactions and the risk of theft.”

Charlotte Lecoutour from AS24 says “Security of transactions is absolutely key in the haulage industry. When you manage a haulage company and you leave a card to each of your drivers and you know they are going to cross Europe with it, you need to be sure that these cards will be used for the right purposes. AS24 offers a chip & pin fuel card providing the same level of security as an EMV credit card.”

Now that fuel cards have demonstrated their benefits to many haulage firms, it is a wanted product, not only for organisations and their drivers, but also for fraudsters, believes Gertjan Breij from DKV. He says: “Vehicle-bound cards are the best alternative for insurers when it comes to tracking fraud because the vehicle’s mileage records are linked to its fuel consumption. This enables quick detection and tracking of fraudsters and restriction of ongoing theft of fuel.”

Gertjan also highlights the fact that fuel cards can be configured with various limits and levels of service, meaning the risk of misuse is minimised. He also cites making drivers aware of fuel card security and handling as very important.

On the cyber security point, he says: “We are currently redesigning our IT system completely and are laying the foundation for better links to other data platforms. The goal is real-time data management for our customers and partners which will also increase the security standards.”

Peter Dore from WEX adds that: “Cybersecurity is a key concern for not just business, but all individuals. At WEX Europe Services we provide our customers with not just expertise and advice on the fuel card sector but also with products and services designed to minimise their risk of fraud and cyber crime.”

Future developments

Transport is in a time of transition. With CO2 and NO2 reduction targets, the push for greener fuels has paved the way for modern electric and hybrid vehicles, as well as other alternative fuels such as gas and biofuels. What’s more, technology is changing the industry as more and more cars are becoming connected and can communicate with other vehicles and their surroundings. Autonomous vehicles is another area where there is change, with the UK government investing in programmes to trial self-driving vehicles on the streets.

How does our expert panelists see the future for transport and the fuel card industry?

On the point of technology, Peter Dore from WEX says: “As the market moves towards connected mobility we are expecting to see a rise in telematic services linked to fuel card and mileage capture offerings. This will help customers keep all elements of their fleet management with one partner.

“We can also expect to see a greater emphasis on technology including mobile payment services for fleets, native app account management tools and international electronic toll services.”

Gertjan Breij from DKV sees payment methods being linked to modern technology as a future development:

“Currently, the infrastructure for the fuel card is the most widespread. It will therefore probably not disappear overnight. But still, the card is already being replaced in many places – by smartphones and contactless chips. After a transitional period of three to seven years, this trend will be firmly established as an additional payment method.

“Vehicle manufacturers are already working on fitting vehicles with receivers and transmitters and linking them to systems. The vehicles will then be automatically registered when driving into a fuel station, and the service will be paid for without the driver having to go to the cash desk.”

Andrew Goodwin from Certas Energy sees the fuel card industry developing to offer more than just payments for fuel. He explains:

“For Certas Energy, we see ourselves positioned as a partner rather than just a fuel card supplier. As a service led product we understand the importance of continuous improvement and this could be from a back office perspective in terms of analysis and reports or from driver experience.

Certas Energy have recently launched a new app to aid with planning routes, identifying suitable locations to refuel en‑route, enabling access to our new loyalty scheme launched to customers and also a direct link to the customer web portal.”

Charlotte Lecoutour from AS24 agrees with the other panelists, saying that fuel cards will develop with “more services in the management of data, digital services, mobile payments, and enhanced security for every transaction.”

Expert FInal Thoughts

Andrew Goodwin

For Certas Energy, we see ourselves positioned as a partner rather than just a fuel card supplier. As a service led product we understand the importance of continuous improvement and this could be from a back office perspective in terms of analysis and reports or from driver experience. Certas Energy have recently launched a new app to aid with planning routes, identifying suitable locations to refuel en-route, enabling access to our new loyalty scheme launched to customers and also a direct link to the customer web portal.

Gertjan Breij

Currently, the infrastructure for the fuel card is the most widespread. It will therefore probably not disappear overnight. But still, the card is already being replaced in many places – by smartphones and contactless chips. After a transitional period of three to seven years, this trend will be firmly established as an additional payment method. Vehicle manufacturers are already working on fitting vehicles with receivers and transmitters and linking them to systems. The vehicles will then be automatically registered when driving into a fuel station, and the service will be paid for without the driver having to go to the cash desk.

Peter Dore

As the market moves towards connected mobility we are expecting to see a rise in telematic services linked to fuel card and mileage capture offerings. This will help customers keep all elements of their fleet management with one partner. We can also expect to see a greater emphasis on technology including mobile payment services for fleets, native app account management tools and international electronic toll services.

Charlotte Lecoutour

We are seeing more companies moving to cleaner sources of energy, or at least more concerned by the impact of their activities on the environment. We know there is a growing demand for cleaner and more efficient energy, and in that respect AS24 is launching a NGV (Natural Gas for Vehicles) offer, and opening several gas stations in France. In the future we expect to see more data management services, digital services, mobile payments, and enhanced security.