Harness the power of payments: Goodbye credit cards, hello APMs

APMs are not only a convenient and friction-free way for consumers to make payments, but they also bring significant benefits for airlines.

Firstly, offering APMs improves customer satisfaction by providing a more convenient experience for travelers. Additionally, in many regions, credit card penetration is low due to restrictions in obtaining credit cards, tight credit limits, and a lack of customer security. Offering APMs can open up new markets by tailoring payment offerings to local payment types.

Secondly, alternative forms of payment can save airlines money. The high use of credit cards can be costly for airlines, and even a small savings of one or two percent per transaction can bring significant gains.

Airlines should also consider accepting Buy Now Pay Later and similar financial instruments for their ability to convert, such as online banking (ACH Debit). Because banks guarantee the funds, they offer quicker turnaround, fewer fraud claims, and are generally cheaper to accept as the payment does not need to go through the card network for processing. Methods like split payments, where a traveler can pay with more than one card, are also essential in meeting the expectations of today’s travelers.

To ensure specific customer needs are met, airlines need a defined and tailored payment strategy. This can include leveraging different payment methods for each customer category or collaborating with local payment providers to define an operating model that best suits local customers.

The good news is that, because airline bookings and transactions are largely digital, adopting APMs and creating a tailored checkout experience is easily achievable using Payment Orchestration. CellPoint Digital’s Payment Orchestration Platform, Velocity, has a large ecosystem of alternative forms of payments, acquirers, and gateways that are already in use with our airline merchants. Velocity provides easy access to our console where you can configure and deploy APMs for different markets based on rules that are unique to your business. With a confident and proactive approach, airlines can turn payments from a cost to a profit by adopting APMs.