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Report from CellPoint Mobile stresses a "Mobile-First" payments imperative for airlines' revenue growth in 2016

Airline revenues will come from higher conversions (more "lookers to bookers,"), higher acceptance rates for payments, and support for a broad range of traditional and alternate payment methods (APMs), according to Kristian Gjerding, CEO of CellPoint Mobile. Those three components are necessary as the majority of passengers' payments and interactions with airlines will shift to the mobile environment in the not-too-distant future.

LONDON – Airlines across the globe stand to gain hundreds of millions in new and incremental revenues through 2016 if they adopt robust payment solutions that make it simple for passengers to purchase tickets and ancillary products directly from their smartphones, digital wallets and wearable devices, according to CellPoint Mobile, a payment solutions company serving the global airline industry.

The Mobile Payments Imperative for Global Airlines: 2016 Outlook urges global airlines to adopt a “mobile-first” mindset around payments and passenger-centric services to capture more of the $762 billion (USD) estimated by eMarketer to emerge from digital travel-related transactions by 2019.

Airline revenues will come from higher conversions (more “lookers to bookers,”), higher acceptance rates for payments, and support for a broad range of traditional and alternate payment methods (APMs), according to Kristian Gjerding, CEO of CellPoint Mobile. Those three components are necessary as the majority of passengers’ payments and interactions with airlines will shift to the mobile environment in the not-too-distant future.

By 2019, some 55% of all global commerce transactions (or $1.3 trillion of an estimated $2.4 trillion USD), will arise from Alternative Payment Methods (APMs) such as Android Pay, Apple Pay, Samsung Pay, Visa Checkout, MasterPass, Amex Express Checkout, m-pesa, pre-paid cards and others, according to recent payments industry forecasts. “Airlines have much to gain by embracing mobile payments and transactions quickly and effectively – and so much to lose if they do not,” says Gjerding.

Travel payments: poised for growth
By adopting a ‘mobile-first’ mindset, airlines are able to capture substantial new and incremental revenues across all direct channels, payment methods, currencies and devices. The same mindset will ensure that airlines are also well-positioned to integrate new passenger services and revenue streams as they become available.

The Mobile Payments Imperative report outlines a number of core airline strategies needed to capitalize on the mobile-first approach:

  • Make mobile payments highly functional and seamless, able to support such capabilities as single-sign-on and one-click payment functionality, with as few intervening steps as possible
  • Support a wide range of digital wallets and APMs
  • Own and manage passenger-centric data and services across all channels, so that passengers can easily interact with and purchase tickets/products from airlines from all of their devices (smartphones, tablets, wearables) and across all channels (online, offline, mobile) – easily, quickly and with the least amount of interruptions.

The Mobile Payments Imperative report also notes that while mobile payments are still in their formative years, they have a growth trajectory that places high expectations on airlines to stay current with mobile technologies and solutions as they emerge, evolve and deploy.

“Airlines that seize opportunities now will be well positioned for continued growth and higher revenues in the coming years,” says Gjerding. “Those that do not will find it incredibly challenging to catch up later.”

Co-Founder & Chief Editor - TravelDailyNews Media Network | Website | + Posts

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.

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