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Payment trends airline merchants need to stay on top of

Airline merchants must stay informed about the latest payment trends, especially in this fast-evolving technology landscape. Adapting to these trends ensures smooth payment operations and positions merchants for success in a competitive market.

Several key payment trends demand the attention of airline merchants. These include the rising popularity of Buy Now, Pay Later (BNPL) services, the continual growth of digital payments, an increased focus on data security and privacy, the emergence of embedded finance, and the adoption of Payment Orchestration.

Understanding and capitalising on these payment trends can future-proof businesses and drive enhanced customer experiences. Let's delve into each one and explore its implications for airline merchants.

Trend 1: Buy Now, Pay Later (BNPL)

The Buy Now, Pay Later (BNPL) trend has gained significant traction in the payments landscape, revolutionising how consumers make purchases. BNPL services allow customers to spread their payments over instalments, making it an attractive option for budget-conscious shoppers.

According to recent data, global BNPL transactions will surge by over 450 billion USD from 2021 to 2026, highlighting its growing popularity. For airline merchants, BNPL offers both benefits and challenges. On the one hand, it can drive increased conversion rates and boost customer loyalty by providing flexible payment options.

For example, a GlobalData survey found that 43% of Gen Z customers (i.e. those born between 1997 and 2012) are extremely receptive to digital advancements in the travel industry, such as BNPL. However, managing multiple BNPL providers and integrating their services and payment terms can be complex.

Trend 2: Continual growth of digital payments

The continual growth of digital payments has become a prominent trend, driven by the convenience and security it offers to consumers. Recent research highlights the strong preference for digital payments, with 70% of consumers expressing a desire to receive payments digitally and 73% preferring to shop and pay using digital methods such as in-app and peer-to-peer payments.

For airline merchants, the impact of digital payments is significant. It enables seamless and frictionless transactions, enhancing the overall customer experience and driving customer satisfaction.

Payment Orchestration platforms support a wide range of digital payment methods. By integrating with various payment providers, these platforms empower airline merchants to offer diverse digital payment options, catering to the preferences of their customers and keeping up with the evolving payment landscape.

Trend 3: Increased focus on data security/privacy

Data security and privacy have emerged as major concerns in payment transactions, with consumers becoming more cautious about how their personal information is processed and stored.

Studies reveal that 83% of UK consumers express concerns regarding how merchants handle their card details during transactions. Furthermore, 34% of respondents consider data security and payment encryption as crucial factors for a satisfactory online payment experience.

Payment Orchestration platforms recognise the importance of data security and offer advanced security features to safeguard sensitive customer information. For instance, our Payment Orchestration Platform, analyses data from over 141 billion transactions and generates real-time alerts of possible fraudulent behaviours such as identity theft and card testing.

By partnering with these platforms, airline merchants can ensure a secure payment environment, build trust with customers, and mitigate the risks associated with data breaches or unauthorised access to customer data.

Trend 4: Embedded Finance

Embedded finance is revolutionising the airline industry by embedding financial services directly into customer experiences. This trend allows airline merchants to offer a range of financial products and services, such as instant loans, insurance, or loyalty programs, that integrate smoothly into their platforms.

The benefits of embedded finance for airline merchants are significant. It enhances customer engagement, increases revenue opportunities, and strengthens brand loyalty. Therefore, it's not surprising that three in five adults in the UK have used embedded finance services in the past 12 months. By leveraging embedded finance, airlines can offer personalised financial solutions tailored to their customer’s needs, creating a more holistic and convenient travel experience.

Payment Orchestration platforms play a vital role in enabling the seamless integration of embedded finance solutions. These platforms facilitate the connection between airlines and financial service providers, ensuring smooth transactions and secure financial operations for both merchants and customers.

Trend 5: Growth of Payment Orchestration

The growth of Payment Orchestration is transforming the payments industry, providing streamlined and efficient payment processes for airline merchants. According to a recent report, the global revenue of the orchestration market reached $793.6 million (USD) in 2021, with projections to exceed $3 billion by 2028.

Payment Orchestration platforms simplify payment operations for airline merchants by integrating multiple payment service providers (PSPs) into a single interface. This consolidation enables seamless payment acceptance, improved transaction management, and an enhanced customer experience.

In 2022, we conducted research into enhancing the payment experience for post-COVID airline customers and found that 66% of companies worldwide believe they can do more to make the digital payment experience frictionless for their customers.

Adopting a Payment Orchestration platform offers numerous advantages for forward-thinking airline merchants, including increased flexibility, scalability, and future-proofing of business operations in the rapidly evolving payments landscape.

Link Link to supporting article "Simplify the reconciliation process with payment orchestration"

Unlock the future of payments with CellPoint Digital

Embrace the evolving payment landscape and stay ahead of the curve by partnering with CellPoint Digital. As a leading provider of Payment Orchestration solutions, our expertise can help airline merchants navigate the latest payment trends.

Don't miss the opportunity to future-proof your business operations. Contact us today to explore how we can drive your airline business forward.

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