In the first of our series on how airlines can harness the power of payments, we delve into the evolving world of alternative payment methods (APMs).
As the world of payments evolves, airlines have an opportunity to turn payments from a cost to a profit by embracing APMs payments. With the convenience of mobile devices, e-wallet options, QR codes, and new approaches to authentication, consumers are increasingly turning to APMs for their purchases, including airline tickets.
Analysis by Capital Economics shows that credit card use has been falling as consumers adopt APMs. Barely half of millennials own a credit card, and of those that don’t, 93% don’t plan to get one. Services like Apple Pay, PayPal, and Google Pay offer customers the convenience of not having to enter their payment and address details every time they make a purchase.
This trend extends beyond e-commerce sites. By implementing APMs, airlines can improve customer experiences, increase revenue, and decrease costs. As an industry leader, it is crucial for airlines to stay ahead of the curve and capitalize on the growing trend of APMs.