Airlines leverage PSD2 to cut transaction fees

New payment method for air tickets successfully demonstrated — International Air Transport Association — “IATA Pay is an industry-supported initiative to develop a new payment option for consumers when purchasing a ticket directly from an airline website. It is made possible by the European Commission’s second Payment Services Directive (PSD2), and the UK’s Open Banking regulation. For airlines, the advantages of IATA Pay are: Cheaper payment option compared to other alternatives; Highly secure; Faster cashflow with instant/near instant payment to the merchant; Simpler payment process resulting in fewer lost sales.”


Deutsche Bank to let airlines collect payments direct from customers’ bank accounts

Deutsche Bank pilots game-changing payments solution with IATA — Deutsche Bank — “Deutsche Bank will collect customer payments directly from consumer accounts in line with the newly revised EU Payments Services Directive, PSD2. Currently, payments are mainly processed via credit and debit transactions… With direct payments being processed and received in near-real time, IATA’s member airlines will benefit from the acceleration of their funds. This will generate significant working capital and liquidity benefits — reducing days sales outstanding and the cost of funding for these airlines.”


Eight in ten air travellers want to store their passport on their phone

Passengers want technology to give them more control over their travel experience — IATA — “82% of travelers would like to be able to use a digital passport on their smartphones for as many travel activities as possible, from booking flights to passing through the airport. Biometric identification systems were the technology of choice with 64% favoring biometric identifiers as their preferred travel token.”





Four in five major airlines plan to use NFC by 2014

Sita

Nearly 80% of the world’s top 50 airlines say they plan to be providing NFC services in three years’ time, according to a survey conducted by airline IT provider Sita, but there are technical challenges that still need to be resolved before NFC mobile boarding passes can become the norm. More




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