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According to research we conducted in June 2018, managing payments costs the airline industry 34.5 billion dollars a year. This includes fees paid to payment providers, as well as indirect costs such as capital expenditure, additional manpower to support manual processes, and lost revenue.
In the same survey,airlines told us their top payment pain point was managing payments across all their different providers.
For a practical illustration of this, let’s take a look atWizz Air. After a decade of solid growth, Central and Eastern Europe’s largest low-cost airline was looking for a way to simplify its payment infrastructure.
Airlines frequently work through intermediaries to access payment partners such as acquiring banks. This provides additional reach but comes at the cost of complexity which can lead to higher cost as well as reduced payment performance.
Working with Wizz Air and its preferred acquirer,Wirecard, Amadeus identified a way to remove one of thepaymentintermediaries Wizz Air was using to access Wirecard. The new configuration ensures more efficient payment processing, which ultimately reduces Wizz Air’s cost of payment. It also provides the low-cost airline with more flexibility to configure its payment infrastructure to fit the specific needs of the airline.
Amadeus Xchange Payment Platform provides a single entry point to access more than 70 different payment providers. Xchange Payment Platform has been designed from the ground-up to simplify complex payment processes, integrating all stakeholders in a single platform and delivering secure end-to-end payment management. In a rapidly changing environment fraught with risk, Xchange Payment Platform brings streamlined processes and security.
By integrating our payment platform with Navitaire New Skies, the passenger services system used by Wizz Air, we were able to connect the low-cost airline directly to Wirecard, which is already integrated with the Xchange Payment Platform.
We are pleased to strengthen our partnership and we’re confident that Wirecard’s global expertise in digital financial technology will help us offer more payment solutions across the travel industry.
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