Airline association Iata and Amadeus payments platform Outpayce have announced they are partnering to enable airlines to accept account-to-account payments or bank transfers direct from customers.
The tie-up between Iata and Amadeus subsidiary Outpayce promises significant cost reductions for airlines without compromising compliance, security or the payments experience.
A bank transfer from a customer to an airline account circumvents card-processing systems which are estimated to cost carriers more than $20 billion a year, or $4.50 (£3.40) per flight booking.
The integration of Iata’s account-to-account payment system Iata Pay and Outpayce will initially be available for direct customer payments only but could potentially be extended to B2B payments.
Outpayce already processes $160 billion in travel payments annually, with about 100 airlines using the Outpayce Xchange Payment Platform (XPP)
Iata and Outpayce announced today that Philippine Airlines had become the first carrier to implement Iata Pay through the platform.
The Iata Pay system, which is currently available in more than 30 countries, allows a customer reaching the checkout on an airline’s website to select their bank to make a payment or to scan a QR code, depending on the country.
Iata then uses the payment and bank details or the QR code’s approval to request a transfer from the passenger’s account and the funds are transferred, with Iata settling the funds with the airline the following day.
Philippine Airlines chief financial officer Anna Isabel Bengzon said: “We’re pleased to now accept Iata Pay in the Philippines. It will provide our passengers a more convenient and secure way of paying via QR code using their digital wallets or through their bank accounts.
“Outpayce’s XPP system helps us to accept a wide range of payment methods across the international markets we serve. Moreover, we can access various payment methods and partners through XPP, with detailed analytics on the performance of payment flows and reconciliation support.”
Juan Antonio Rodriguez, Iata director for financial settlement operations, noted: “The trend towards account-to-account payments is gaining momentum [and] provides an attractive option for airlines to lower the cost of payment acceptance.”
Outpayce senior vice president and head of product management and delivery Jean-Christophe Lacour added: “We’re committed to helping travel companies accept the widest possible range of payment methods through a single connection to XPP, and Iata Pay represents a new option for the industry.
“By making it easier for partners to connect to XPP using self-service APIs we intend to broaden this choice further.”