TruckPay CEO: Trash Sector Cashes In on Digital Payments

Trash — often dismissed as a gritty, behind-the-scenes operation — is going digital. It is arriving in good company.

Traditionally, waste management involved cash-heavy transactions. Independent truckers and small business owners frequently received cash payments for hauling loads of construction debris, scrap metal, or even discarded residential goods.

But as municipalities increasingly push for cashless, digital transactions to combat fraud and streamline recordkeeping, the days of days of pen and paper, missed pickups, and unpaid invoices are close to being over, TruckPay Inc President and CEO Barry Honig told PYMNTS’ Karen Webster during a conversation for the B2B Payments 2024 event.

Technology, Honig said, is reshaping how materials are collected, transported, and even paid for, with digital payments and real-time logistics driving a cleaner, more efficient industry that doesn’t just haul waste — it tracks every step of the process.

Now, companies across the sector are benefiting from ongoing innovations around waste transportation and management processes, capitalizing on digital technology for efficiency and compliance.

Waste management, encompassing recycling, construction, demolition and more, is a multi-hundred-billion-dollar industry in the U.S. alone, with increasing demand for innovative solutions.

Honig, who founded TruckPay to digitize the payment and logistics processes in waste, recycling and scrap management, speaks of the sector as “earth-moving logistics,” a term that captures its scope and significance.

As landfills reach capacity and sustainability regulations tighten, waste management firms are under pressure to recycle more efficiently and handle waste responsibly. Digital solutions not only help achieve these objectives but also enhance operational efficiency. A way this happens is through payments.

“[Waste] comes in many different forms, there’s residential, commercial, medical, construction, governmental,” Honig said, noting that there’s a variety of ways that payments are happening for each.

Digital platforms for the industry are emerging to enable a wide range of digital payment options. Through solutions such as TruckPay’s, customers can pay through account-based billing or instant transactions via credit or debit cards, while drivers and smaller operators can receive payments through virtual wallets and instant money cards, providing an accessible alternative to cash.

For facilities handling hazardous materials or large quantities of scrap, digitizing these processes is not only a time-saver but also a cost-effective measure, said Honig. It reduces the need for physical cash-handling, thereby lessening the need for armored transportation or armed personnel.

TruckPay’s platform serves as an orchestration layer, he said, providing real-time data visibility and logistical control to all parties involved. Facilities can track loads from arrival at the scale to payment deposits, giving waste handlers real-time insight into revenue, inventory and logistics — information traditionally segmented and slow-moving in this industry.

The platform integrates with major ERP systems like NetSuite, enabling seamless flow into back-end financial systems, a key step in eliminating manual data entry and ensuring that transaction records are consistently accurate and accessible. This digital traceability strengthens financial transparency for waste management firms, supporting loan applications or credit extensions based on documented digital invoices.

These digital tools also are key in helping businesses meet regulatory demands that enforce transparency. Many state and local governments now require waste facilities to meet specific recycling rates, like California’s Cal Green mandate for 65% landfill diversion, and digital technology enables easy tracking and compliance.

A unique advantage of TruckPay’s digitally integrated platform is the wealth of data it generates, which Honig held up as being able to reveal economic patterns and growth opportunities. Data on materials like sheetrock, copper, or metal being hauled into landfills or recycling facilities offers insights into construction and demolition activity, shedding light on regional economic growth and infrastructure developments.

For instance, an uptick in scrap metal or construction debris can signal an increase in demolition and rebuilding projects, he said, often correlating with economic booms in certain areas. On the other hand, spikes in specific waste types, such as medical waste, may indicate heightened demand for healthcare services in a region. This capacity for “micro to macro” insights could be invaluable for stakeholders seeking to understand and forecast regional economic trends, adding significant value beyond the primary purpose of waste management.

Honig also sees potential in incorporating additional financial services, such as working capital solutions or credit options for fleet operators who may face delayed payments. This would address the sector’s liquidity needs, particularly for smaller operators who are essential yet often overlooked players in the industry’s ecosystem.

“There’s a lot of capabilities and possibilities up and down the entire value chain,” he said.

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