Welcome!

Blog Feed Post

71% of carriers believe the future of airline payments lies in mobile

Key findings from new WorldPay research include:

  • 29% are planning to enable sales via social media in the next 12 months
  • 40% say self-service kiosks will be less important in the future
  • Mobile acceptance on-board flights will rise to 36% in the next two years

London, 26th March, 2014 - Airlines will increase their focus on new distribution channels such as mobile and social media over the next two years, according to WorldPay's Alternative Payment and Distribution Landscape: Airline Distribution Channels report.

WorldPay, a global leader in airline payment processing and settlements, surveyed 68 global carriers (from low cost to traditional), and found that 83% of airlines believe that improvement and deployment of new payment technology is a major business priority. They want to align their payment offerings with customer expectations to gain competitive advantage.

Carriers are focusing heavily on mobile as both a distribution channel and a means of payment. 71% say the future of airline payments lies in mobile - 50% see mobile payments as a way to keep up with competitors and 45% see them as a way to increase revenues. Mobile payments offer external benefits for passengers but also improve internal processes such as data submission and handling.

Over the next two years, airlines will extend existing mobile services to offer ancillary purchases such as seat upgrades, booking management, onward travel and inflight purchases via mobile phones.

Mike Parkinson, WorldPay VP Airlines, says: "Mobile is not without its challenges - carriers cite increased fraud risk, integration with current systems and processes and mobile platform diversity as the biggest concerns. But with more than three quarters of the world's population now having access to a mobile device, airlines can't afford to ignore this high-growth channel."

The social media opportunity
Many carriers already have a presence on social media sites such as Facebook, LinkedIn and Twitter. Over the next two years airlines will increase usage on these sites and more - for example, 40% plan to be active on Google+ in the next 12 months.

Social media is now also seen as a high potential sales channel, with nearly a third of airlines planning to enable sales via social media in the next 12 months.

The impact of inflight connectivity on on-board payments
Connectivity is a priority for passengers and this is driving carriers to expand the on-board payment methods they offer and increase services such as inflight internet and mobile.

Cards are still the most popular payment method used by passengers to pay for goods and services on-board, but alternative payment methods are growing in popularity. The number of airlines offering on-board mobile payments will increase from 5% to 36% in the next two years, and 18% of airlines plan to accept e-wallets on-board by 2016.

Kiosk investment declining
The WorldPay research shows 40% of airlines believe self-service kiosks will be less important in the future. In fact, just 17% of airlines are investing more in developing kiosk services, whereas 29% are investing more in mobile services. This is due to challenges such as the cost to implement and maintain kiosks, difficulties integrating with current processes and the inability to read chip and PIN cards.

However while kiosk investment is set to reduce, many airlines still plan to implement additional services, such as check-in and seat reservations.

Mike Parkinson concludes: "With new technologies set to replace traditional channels, it's important for airlines to ensure they're prepared. The benefits are clear, but each new channel brings specific challenges. It's vital that airlines work with a payment partner that has a wide range of products and expertise to improve payment processes and transaction rates and maximise global reach."

To download a copy of the Alternative Payment and Distribution Landscape: Airline Distribution Channels report, visit www.worldpay.com/reports/airline-distribution-channel.

The report follows two previous whitepapers that discuss the motivations, challenges and developments in the airline alternative payment landscape: Airlines Going Alternative and Airlines and Alternative Payments: The Facts.

-ENDS-

About WorldPay
WorldPay is a leading global provider of payment and risk services, processing millions of transactions every day. WorldPay is a unification of seven leading retail payment solutions and offers a range of services including acquiring, gateway, alternative payments, risk management, and mobile payments. WorldPay became an independent company in December 2010. www.worldpay.com

Twitter: @WorldPay
Facebook: www.facebook.com/worldpay

Press contact
Roberta Main-Millar / Phoebe Scott
Octopus Communications for WorldPay
+44 (0) 845 3700 655
[email protected]

Source: RealWire

Read the original blog entry...

More Stories By RealWire News Distribution

RealWire is a global news release distribution service specialising in the online media. The RealWire approach focuses on delivering relevant content to the receivers of our client's news releases. As we know that it is only through delivering relevance, that influence can ever be achieved.

Latest Stories
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, will highlight the current challenges of these transformative technologies and share strategies for preparing your organization for these changes. This “view from the top” will outline the latest trends and developm...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...