Mobile payments to airlines on the rise
Credit cards remain the preferred payment method by customers paying for flights, but mobile payment is becoming increasingly important.
Research by WorldPay, the airline settlements and payments company, reveals acceptance of mobile payment (payments for transactions made on a mobile device) by airlines has increased to 25% and mobile transactions are set to be the biggest driver of revenue in the next two years.
In 2013, credit cards (96%), charge cards (86%), debit cards (64%), air miles/loyalty points (54%) and e-wallets (38%) were the top payment methods accepted by airlines.
Yet 86% of airlines in 2013 offered discounts or rewards for customers using alternative payment methods to credit cards; an increase from 55% in 2012.
A 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.
WorldPay’s research was carried out among 56 global airlines and is revealed in a report, the Alternative Payment and Distribution Landscape: Airlines and Alternatives – The Facts.
It found 57% of airlines said mobile has the greatest potential to drive revenue over the next two years – equal to credit cards (57%).
The acceptance of mobile payments has already grown to 25% in 2013, an increase from 10% in 2012.
WorldPay vice president airlines Mike Parkinson, said: "In the future, services offered via a mobile device will become inherent to the airline experience from booking to check-in."
The research also explored the alternative payment landscape for airlines and the biggest drivers for adoption of alternative payment schemes.
Meeting customer demand and offering choice was the top reason (89%), followed by the cost savings that can be made by customers using alternative payment methods instead of credit cards (64%).
Lisa
Lisa joined Travel Weekly nearly 25 years ago as technology reporter and then sailed around the world for a couple of years as cruise correspondent, before becoming deputy editor. Now freelance, Lisa writes for various print and web publications, edits Corporate Traveller’s client magazine, Gateway, and works on the acclaimed Remembering Wildlife series of photography books, which raise awareness of nature’s most at-risk species and helps to fund their protection.
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