IATA and Outpayce help airlines accept account-to-account payments

Recent regulations in many markets make it possible for merchants to accept payment from consumers using direct, account-to-account transfers. As airlines seek to best meet the needs of travelers and reduce the overall cost of payments, account-to-account payments are becoming very popular, and they represent a new option for travelers to pay for air tickets. That’s why IATA and Outpayce are partnering so airlines can now accept payments made with IATA Pay through Outpayce’s Xchange Payments Platform (XPP).

IATA Pay is an alternative account-to-account form of payment for travelers to pay for air tickets purchased online by directly debiting their bank account. It improves speed and security of payments, while reducing payment costs. Airlines benefit from additional services, such as settlement within 24 hours, reconciliation, refund management and an administrator portal. 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 Philippines (QR Ph). Currently available in over 30 countries, IATA Pay improves the speed and security of payments, while reducing payment acceptance costs.

Regulatory initiatives such as the EU’s Payment Services Directive 2 (PSD2) encourage the development of new solutions such as bank account to bank account, real time payment and request-to-pay services. At the same time, the adoption of immediate payment solutions is becoming global. Some cashless alternatives such as Unified Payments Interface (UPI) in India are becoming popular and a mandatory offer in some jurisdictions. IATA Pay leverages these developments to enable airlines to offer their customers a direct payment solution when purchasing airline products and services online.

Since its launch in 2022, IATA Pay has helped participating airlines to save up to 99% in payment processing fees while providing travelers with a highly secure alternative form of payment.

When a traveler reaches 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 the QR code’s approval to request a transfer from the passenger’s account and the funds are transferred using the banking rails. IATA settles the funds with the airline the following day.

The article IATA and Outpayce help airlines accept account-to-account payments first appeared in TravelDailyNews International.