PayPal USD, TCS use blockchain to speed freight pay

TCS Blockchain and PayPal USD are working together on digital asset settlement for freight invoices, aiming to speed up payments and cut costs for trucking and transportation companies in North America.

The arrangement uses blockchain-based settlement for business-to-business payments tied to freight movements. It targets a long-standing friction in transport finance: carriers often wait 30 to 180 days to be paid and turn to factoring firms to get cash sooner.

Factoring is common among smaller fleets and owner-operators that need cash for fuel, wages, maintenance, and insurance. In return for early payment, carriers sell their invoices at a discount. TCS Blockchain says carriers can give up 30% or more of net revenue under these arrangements.

TCS Blockchain advances funds against freight invoices and settles the payment when the invoice is paid. It offers same-day funding under non-exclusive agreements and does not charge reserve fees. It also says its service can be up to 90% cheaper than traditional invoice factoring.

On-chain settlement

The collaboration links TCS Blockchain's token-based settlement with PayPal USD, the stablecoin branded as PYUSD. Payment flows will move first through TCS Token on the INX-Republic exchange and then through PYUSD, according to TCS.

TCS Blockchain says it settled the world's first freight invoice on-chain in 2022 and has used nearly 30,000,000 TCS Tokens in B2B settlement since then.

To use the system, carriers must onboard with TCS and set up an account at INX-Republic. The structure allows carriers to settle invoices by converting TCS Tokens into US dollars through the exchange. PYUSD will serve as the back-end settlement currency for related flows, the companies say.

May Zabaneh, Senior Vice President and General Manager of Crypto at PayPal, described the initiative as a way to modernise payment timing and fees in a sector where liquidity is often tight.

"If we were designing B2B payments from scratch, we wouldn't accept months-long settlement and layers of fees. We'd expect speed, transparency, and 24/7 availability," said Zabaneh. "The engagement with TCS Blockchain demonstrates how on-chain settlement can upgrade legacy payment flows in cash-critical industries, proving that digital assets can drive real economic activity."

Commercial targets

Todd Ziegler, Chief Executive of TCS Blockchain, said the company expects its freight invoice volumes to exceed one billion in annual flows in 2026. He said the PayPal USD tie-up should further reduce costs and support adjacent products aimed at carriers.

"TCS is on pace for over one-billion in annual freight invoice flows in 2026. Those flows will first move through TCS Token on the INX-Republic exchange, and then through the PYUSD stablecoin," said Ziegler. "With PayPal USD, TCS can offer even greater savings on invoice settlement to carriers, and the best fuel card on the market. The engagement is a tremendous win for truckers, freight brokerages, and at-scale carriers."

The companies framed the initiative around three themes: savings versus factoring, faster year-round settlement, and shared visibility into transaction records. Blockchain systems typically record transactions in a way that can be reviewed later and reconciled across parties.

The move also comes amid a broader push by payments firms and fintech providers to bring stablecoins into mainstream settlement for business payments. Stablecoins are digital assets designed to track the value of a fiat currency and are often used to move funds between platforms, exchanges, and wallets.

Stablecoin structure

PayPal USD is issued by Paxos Trust Company. PayPal says it is backed by US dollar deposits, US Treasuries, and similar cash equivalents. Customers can buy or sell PayPal USD through PayPal and Venmo at a rate of $1.00 per PayPal USD, according to PayPal.

Republic, referenced through INX-Republic, describes itself as a financial firm that operates retail-focused investment platforms and a digital advisory arm. The exchange link indicates that the TCS Token leg of the process relies on market infrastructure outside the traditional banking system.

As the companies expand the model, a key test will be uptake among carriers and freight intermediaries, particularly those that already rely on factoring. Zabaneh said the project reflects what businesses expect from modern payments: "speed, transparency, and 24/7 availability."