Airlines Expect Rise in On-Board Mobile Payments
Over the next two years, an increasing number of airlines will offer mobile payments on-board to better satisfy customer expectations, predicts a new report from WorldPay. The airline industry represents a key area for mobile as more travelers are equipped with mobile devices. The WorldPay report found that 50 percent of the 68 global carriers surveyed believe mobile payments is a way to keep up with competitors, and 45 percent believe mobile payments will drive and increase revenues. Eighty-three percent of carriers said upgrading and implementing new payment technology will be a major priority. In the next two years, the number of airlines offering mobile payments on-board will rise from 5 to 36 percent, and 18 percent intend to accept e-wallets. “The opportunities and benefits of new payment and distribution channels such as mobile are clear, but these bring specific challenges,” says WorldPay’s Mike Parkinson. “Airlines can be notoriously siloed. However for mobile and other new payment technologies to be successful, all departments—finance, operations, loyalty, e-commerce, and now new mobile/innovation teams—will be required to align and work closely with a common goal.”
From “Airlines Expect Dramatic Rise in Availability of On-Board Mobile Payments”
BizReport (03/31/14) Leggatt, Helen