10th May 2024
Digital consumers have greater expectations in their shopping journey, and this includes completing a payment for an air ticket. As merchants, airlines not only have to offer a payment method that a travel shopper prefers, but they also look at having funds faster, being in control of cash flow as much as they can.
It is necessary for airlines to avail the best of underlying infrastructure and systems that facilitate the transfer of money to meet their objectives. Payment specialists have to deal with complexity, which is driven by the regulatory, technological, and market-driven fragmentation. Looking at constant progress, they have to assess what is the latest in the world of money movement or how newer rails have come along.
Established payment rails include Automated Clearing House, card rails, SWIFT, SEPA, RTP, crypto currencies etc. There are mobile payment systems such as Apple Pay. The factors that come into play when we talk of several payment networks or systems that exist today are fees and transaction costs associated with each rail, speed, security and regulatory compliance, and reach. And specifically, how a payment rail is affecting a travel shopping experience.
Cross-border payments
When we talk of cross-border payments, it is a specialised task to navigate the maze of international payment methods. For such transactions, rails support fund transfers between different currencies while adhering to regulations. Airlines, working in conjunction with their partners, have to opt for a mix of global and local payment rails to succeed in multiple countries. All of this matters at the time of checkout. Key metrics include authorisation, conversation, CX etc.
With a variety of rails available, airlines and other companies in the travel sector can evaluate aspects related to faster payment processing, dynamic routing instead of following predetermined routes, cost considerations etc. If on one hand, there are certain advantages of new payment rails in terms of facilitating online transactions, speed and improving accessibility, on the other entities have to assess risks associated with digital payment rails, including security and regulatory challenges.
It is worth evaluating how payment rails continue to evolve, making transaction experiences even better.
If you are keen on evaluating the future landscape of payment systems, then #ATPS2024 is an apt opportunity to do so:
https://www.aiconnects.us/atps-2024/
By Ritesh Gupta, Ai Events
