Toll finance in India has evolved over the past few years, driven by technological advancements, regulatory changes, and the growing need for efficient toll management in the face of increasing traffic congestion and infrastructure demands. The tolling system is an integral part of the country’s road network, contributing to the funding and maintenance of national highways and expressways. As India looks to modernise its transportation infrastructure, the toll finance industry will continue to experience significant changes.
This article outlines the key trends in toll finance that fleet owners, commercial vehicle operators, and logistics companies should monitor in the coming years.
Key Toll Finance Trends to Watch for in the Future
As the transport sector continues to evolve, toll finance is adapting to meet the changing needs of fleet owners and commercial vehicle operators. With new technological advancements and innovative financial solutions, the future of toll road finance promises greater convenience and efficiency.
Let’s explore toll finance trends that will shape the toll finance landscape in the future:
1. More FASTags and Digital Payments
The government has made FASTag compulsory to reduce traffic jams at toll booths. In the coming years, more vehicles will start using FASTags for seamless automated payments, so banks and Non-banking Financial Companies (NBFCs) may offer better toll financing deals for digital payments.
2. Collaboration with Fleet Management Systems
Many companies now use fleet management software to track vehicles. In the future, toll financing may be clubbed with such software for better optimisation. Companies can then manage routes, costs and toll spending using a single centralised system.
3. Specialised Products for Smaller Players
Currently, small transport companies and startups often struggle with cash flow when managing toll expenses. As the industry evolves, financial institutions are introducing tailored solutions with flexible repayment plans and cost-effective options.
With toll finance solutions from trusted providers like Shriram Finance, smaller fleet operators can benefit from competitive interest rates, easy repayment options, and special onboarding benefits, ensuring seamless toll payments without straining their working capital.
4. Expansion Beyond Highways
Today, toll roads are mostly highways and expressways. However, as cities expand, more urban roads, bridges, and tunnels may also be introduced as tolls. So, the scope for toll financing will increase beyond just national highways.
5. Government Promoting Digital Payments
The government is pushing digital payments across all sectors. Similarly, policies that improve electronic toll collection can be expected. These may include incentives for using FASTags, lower processing fees for toll financing, etc. More private players may also enter this space.
6. Personalised Solutions with AI
Many banks and NBFCs now use Artificial Intelligence (AI) to analyse customer data and offer personalised loans. Similarly, automated systems can be used to predict toll spending patterns and suggest customised toll financing options as per usage.
7. Rise of Subscription Plans
Currently, toll financing works as a standard loan product. But going forward, subscription plans may emerge. Transporters may soon opt to pay a fixed monthly or annual fee to banks/NBFCs to manage toll payments.
8. Use of Blockchain Technology
Blockchain technology enables secure real-time tracking of transactions and can prevent fraud. When integrated with toll payments and financing, it can make systems more transparent and reliable. This will build more trust in solutions like FASTags.
9. Collaboration between FinTech and Traditional Players
Many technology companies are entering financial services. They are expected to partner with regular banks and NBFCs to deliver innovative toll financing solutions using digital platforms, AI and automation.
10. Improved Awareness among Transporters
While toll financing has many benefits, many transport owners are still hesitant to adopt it due to misconceptions. Banks or NBFCs will likely invest more in awareness campaigns and training programs to educate customers on the advantages of toll financing.
11. Regulatory Developments
As toll roads and service lanes are increasingly developed under (Public-Private Partnership) PPP models, the government aims to ensure common standards for electronic toll collection and interoperability between different agencies and concessionaires. The Payments and Settlements Systems Act 2007 is also being amended to regulate prepaid payment instruments like FASTag. Such developments can positively impact toll financing products - making them affordable and convenient.
Conclusion
Technology is rapidly changing toll roads and payments. Transporters must stay updated on toll financing emerging trends in toll financing to leverage future digital platforms, analytics, partnerships, and new business models. Adopting solutions like FASTags and toll financing will be key to improving efficiency and managing costs. The future looks promising for transporters to optimise toll expenses in an innovative yet simple manner.
