Dec 20, 2013 (Fri): The global payment company WorldPay today released its “Alternative Payment and Distribution Landscape: Airlines and Alternatives – The Facts” whitepaper, a report of research study among 56 global airline carriers. The report reveals that 57 percent of airlines said mobile has the greatest potential to drive revenue over the next two years – equal to credit cards (57%) and its acceptance increased to 25 percent this year.
Other key findings from the white paper are:
- Credit card was the top payment methods accepted by airlines (96%) followed by charge cards (86%), debit cards (64%), air miles/loyalty points (54%) and e-wallets (38%);
- One third (32%) of airlines are planning to offer mobile payments in the next two years, with e-wallets (29%) and online bank transfers (29%) also on the development radar;
- The top three reasons for airlines looking for multiple payment methods are providing the ability to reach new customer segments (63%), lower payment processing fees (61%) and lower fraud rates (50%);
- 86 percent of airlines offered discounts or rewards for customers using alternative payment methods to credit cards; an increase from 55% in 2012;
- The biggest challenge for airlines implementing alternative payment methods without external assistance is the lack of integration with current systems and processes, followed by the cost of implementation (39%);
- 88 percent of airlines believe enabling alternative payment methods is critical for revenue growth.