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How airline merchants can leverage Payment Orchestration to maximise conversions

By: Ciaran Wilson, Head of Sales EMEA

Leveraging Payment Orchestration platforms can be a game-changer for airlines operating in the highly competitive aviation industry. With over 23% of customers abandoning their travel transactions, it has become essential for airline merchants to understand and address common pain points.

Key challenges experienced by airline merchants include:

Managing disparate acquirer relationships

Dealing with antiquated payment pages

Integrating a vast array of alternative payment methods

Revenue loss due to foreign exchange

By understanding and tackling these issues head-on, airline merchants can maximise their conversions and save valuable time and money. In this article, we’ll explore how Payment Orchestration empowers airline merchants to take charge of their payment ecosystem. Read on to learn more.

Streamlining acquirer management

Managing multiple acquirers can be challenging for airline merchants. According to a new global survey, 57% of merchants work with multiple acquirers. Working with various acquirers and payment service providers (PSPs) can lead to complexities and is time-consuming.

Inefficient reconciliation and reporting processes further add to the complexity. Manually reconciling transactions, tracking settlements, and generating reports across multiple acquirers can be daunting. Managing multiple acquirers consumes valuable time and increases the risk of errors and discrepancies in financial records.

Payment orchestration, meanwhile, offers a solution to streamline acquirer management. With a unified payment platform, merchants can centrally manage their relationships with multiple acquirers, or PSPs. As a result, this eliminates the need for separate integrations and simplifies the overall management process.

Payment Orchestration also provides chargeback management solutions. By intelligently routing transactions through multiple payment providers and employing advanced fraud prevention measures, Payment Orchestration platforms can help protect airlines from disputes and chargebacks, reduce the risk of fraudulent transactions, and identify potential chargeback triggers in real-time.

Modernising payment interfaces

Outdated payment pages and a poor user experience can significantly impact the conversion rates of airlines. According to Baymard's research, 17% of cart and checkout abandonments occur due to the long and complicated payment process.

Complex payment interfaces with long loading times and confusing navigation can frustrate customers and stop them from completing their transactions. Meanwhile, outdated payment interfaces can also impact customer satisfaction. A smooth and seamless payment experience is vital for enhancing customer satisfaction and building trust, as dissatisfied customers may develop negative perceptions of the airline's brand and seek alternative options in the future.

Payment Orchestration offers a solution to modernise payment interfaces, improve conversion rates, and increase customer satisfaction. By leveraging Payment Orchestration platforms, airline merchants can streamline their payment processes, eliminate unnecessary steps, and provide a user-friendly interface that aligns with customer expectations. This optimisation not only maximises conversions but also results in increased customer loyalty and repeat business.

Handling diverse payment methods

Alternative payment methods are gaining significant popularity among customers, and their growth is projected to continue. According to The Fintech Times, alternative payments are expected to exceed $15 billion by 2027, with a compound annual growth rate (CAGR) of 16.3% between 2017 and 2027. This trend highlights the importance of airline merchants’ ability to offer a wide range of payment options that cater to evolving customer preferences.

However, integrating and managing numerous payment methods can pose challenges for airline merchants. Each alternative payment method may have its own technical requirements, security measures, and operational considerations, making the integration process complex and time-consuming.

Payment Orchestration provides a solution for handling diverse payment methods efficiently. By leveraging payment Orchestration platforms, airline merchants can consolidate and manage multiple payment options through a unified interface. This, in turn, simplifies the integration process, reduces technical complexities, and streamlines the management of diverse payment methods.

Minimising lost revenue due to Foreign Exchange

Fluctuating exchange rates and hidden fees can impact the final transaction amount and result in revenue loss for airline merchants. These complexities make it difficult to predict the financial implications of cross-border transactions accurately.

The impact of foreign exchange on airline merchants' profitability is substantial. According to the Currency Conversion and the Hidden Costs of Global Trade study, the average global premium charged to send a payment across borders is 3.39%. Depending on the region, this premium can range from 4% to 25%, representing a significant portion of all transactions.

By leveraging Payment Orchestration platforms, airline merchants can benefit from features such as multi-currency processing (MCP) and real-time payment mechanisms. These capabilities enable travellers to convert the purchase price into their preferred currency at the time of payment, which provides transparency and eliminates surprises. Real-time payment clearance ensures that transactions are processed at the most up-to-date exchange rates, reducing discrepancies and minimising revenue loss due to currency fluctuations.

Maximise conversions with CellPoint Digital

When it comes to maximising conversions and streamlining payment processes, CellPoint Digital is your trusted partner. With our industry-specific solutions and advanced technology, CellPoint empowers airline merchants, or retailers from any industry, to leverage Payment Orchestration effectively.

CellPoint Digital's robust solution offers seamless integration with multiple payment providers, intelligent transaction routing, and powerful fraud prevention tools. Don't let payment complexities hold you back. Take control of your payments with CellPoint Digital and unlock new opportunities for growth.

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