New regulations in many markets allow merchants to accept payments from consumers using direct account-to-account transfers. As airlines strive to better serve travelers and reduce the overall cost of payments, account-to-account payments are becoming increasingly popular, providing a new option for travelers to pay for their flights.
That's why IATA and Outpayce are collaborating so that airlines can now accept payments made with IATA Pay via Outpayce's Xchange Payments Platform (XPP).
IATA Pay is an alternative account-to-account payment method that allows travelers to pay for airline tickets purchased online through direct debit from their bank account. It leverages the new account-to-account rails and regulations developed by countries around the world, such as India (UPI), the Netherlands (Ideal), Brazil (PIX) or the Philippines (QR Ph). Currently available in over 30 countries, IATA Pay improves the speed and security of payments, while reducing the costs of accepting payments.
When a traveler reaches the checkout on an airline’s website, the new account-to-account payment service allows them to select their bank or scan a QR code, depending on the country. IATA uses the payment and bank details or QR code authorization to request a transfer from the passenger’s account and the funds are transferred using the bank rail. IATA settles the funds with the airline the following day.
Juan Antonio Rodriguez, Director Financial Settlement Operations, IATA, says ”The trend towards account-to-account payments is growing stronger. It provides a seamless experience for passengers and is an attractive option for airlines to lower the cost of accepting payments. Through Outpayce, airlines using XPP can start accepting IATA Pay while benefiting from XPP’s powerful orchestration, analytics and reporting capabilities.”
Anna Isabel Bengzon, Chief Financial Officer, Philippine Airlines, says: ”We are excited to now be able to accept IATA Pay in the Philippines. It will provide our passengers with a more convenient and secure way to pay via QR code using their digital wallets, which are very common in the country, or through their bank accounts. Outpayce’s XPP system helps us intelligently accept a wide range of payment methods used by travelers in the international markets we serve. In addition, we can access various payment methods and partners through XPP, with detailed analysis of payment flow performance and back-end reconciliation support.”
Jean-Christophe Lacour, SVP and Head of Product Management & Delivery, Outpayce added: ”We are committed to helping travel companies accept the widest possible range of payment methods through a single connection to XPP and IATA Pay represents an exciting new option for the industry. By making it easier for partners to connect to XPP using self-service APIs, we intend to broaden this choice even further.”
IATA is one of the first partners to connect to Outpayce’s Xchange Payment Platform using the new self-service APIs, which will be piloted in 2024. The addition of self-service APIs helps open up XPP, making it easier for any payment or fintech company to connect their services, increasing choice for travel companies and further optimizing payment orchestration.
According to the press release.
