Blockchain-based solution to offer scalable solutions for pay-per-use assets: the case study of electric vehicles


Roxpay is a Swiss FinTech company specializing in Pay-per-use (PPU) assets. To address critical issues in the logistics and industrial sectors (from financing to sustainability), Roxpay developed its blockchain-based software to streamline pay-per-use invoicing and payments. Its first pilot project is in the transport industry with the goal of reducing CO2 emissions. The goal is to get rid of intermediaries and have a machine-to-machine system for electric vehicles. This would be less prone to human-like errors and would be more efficient. Using Polygon permits to automate payments at a very low fee and serves as an on-ramp for companies to start taking advantage of the public blockchain Ethereum. Indeed, Roxpay starts on Polygon but thinks of deploying on Mainnet when the company is more mature.

Challenges of the logistics and industrial sectors

Roxpay focuses on three types of clients, namely Logistics companies, Retail and institutional investors and Industrial companies transitioning to pay-per-use models. They explain that the logistics and industrial sectors face different issues such as asset management, as well as regulatory and sustainable financing challenges. Companies using pay-per-use (PPU) assets suffer from the same challenges and from cumbersome payment processes. For now, Roxpay focuses on the transportation sector as there are growing concerns about reducing CO2 emissions, with green solutions being the top priority. As Roxpay emphasizes “The need for adequate technology to bridge the financing gap created by the PPU model has led to some attractive solutions.” In the case of electric vehicles, the challenge is the limited range they have available to drive and the time it takes to charge the vehicle.

Roxpay’s solutions and how blockchain fits into it

As Roxpay focuses on the transport industry, its first use case concerns electric trucks powered by green ethanol. The platform receives daily truck data and then calculates, invoices, and automates payments, making the entire process machine-to-machine. Roxpay partnered with some companies focusing on green solutions such as Nexmobility and Whitecell Power which are building solutions for electric commercial vehicles. They built what is called range extenders.To put it simply, they are mobile energy generators. They are put on the vehicle and are being fueled with methanol (which comes from reneawable energy) and produces clean energy that recharges the battery while driving. The two trucks using Roxpay solutions are already on the road. Roxpay and its partners have secured commitments to 1,500 major gas stations in Switzerland and are already thinking of developing further payment solutions and tokenization through Ethereum.

Let’s have a closer look at the solutions offered by Roxpay.

  • Roxpay PPU Asset Management Platform: Allows clients to monitor, service and manage their industrial Pay-Per-Use assets for their customers.
  • Roxpay Asset Investment Solution: To minimize upfront capital expenditures, this tool allows retail and institutional investors to financially support Roxpay’s clients.
  • Payments Solution for PPU: Per-per-use payment solution ready to be used to optimize payment processes and benefits from instant settlements.

Here’s an illustration of the Roxpay system’s functioning. 

Thanks to Polygon, Roxpays benefits from very low fees and fast transaction settlements. The use of blockchain fosters transparency which is very much appreciated by their logistics clients. The company is also eager to use Ethereum Mainnet. According to the Roxpay’s CEO David Marchand, Ethereum is scalable, can permit to tokenize real-world assets and can allow them to offer their users more efficient and flexible financing options by tapping into Ethereum’s rich DeFi ecosystem.

Overall, the takeaway is that not only will the trucks of Roxpay be using clean energy and have no CO2 impact, but they will also be using the pay-per-use model. This means the client gets the truck in a long-term contract but only pays for the kilometers they drive. The data collection and payment processes is done through Roxpay’s blockchain-based payment system. 

Benefits & Outcomes
  • Streamlining pay-per-use invoicing and payments
  • Bridging the cash flow gap in pay-per-use models with financing solutions
  • Reducing C02 emissions
  • Alleviating the need for upfront expenses thanks to a blockchain-based pay-per-used model
Further Info

The Pay-Per-Use model takes into account , the type of vehicle and equipment as well as the annual mileage so that the customer only pays for what he used. This means Roxpays takes on all the risks and the client does not require any down payment. Thanks to the blockchain-based system, everything is transparent and accessible.

The Benefits of the Pay-Per-Use model are the following:

  • Access to new customers through lower cost of entry as they are being charged only what they use. This is a solid argument to convince price-sentitive segments.
  • Helps build stronger customer relationships through the long-term contracts. It fosters connection between your company and the client.
  • Higher profit margins as there is no one-time payment, but payment is spread out throughout time and usage;
  • Permits to improve offerings and gain a competitive advantage thanks to the PPU model which is very flexible and efficient.

The first pilot project went live in October. It is now live with two trucks on the road and a lot of vehicles forecasted to be deployed in the near future. Researched by Alexandre January 2024.

© Antony Welfare 2024