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BizReport : Mobile Marketing : March 31, 2014

Airlines expect dramatic rise in availability of on-board mobile payments

The next two years will see a significant rise in the number of airlines offering mobile payments on-board according to a new report from airline payment processing provider WorldPay.

by Helen Leggatt

In order to align themselves with customer expectations more airlines will begin offering the option of mobile payments to make purchases while on-board, found WorldPay. The airline industry is a key area for mobile as more travelers are equipped with a mobile device.

The report, "Alternative Payment and Distribution Landscape: Airline Distribution Channels", found that 50% of the 68 global carriers surveyed believe mobile payments is a way in which they can keep up with competitors, and 45% believe mobile payments will drive and increase in revenues.

Most (83%) said they believed upgrading and implementation of new payment technology to be a major priority. In the next two years, the number of airlines offering mobile payments on-board will rise from 5% to 36% and 18% plan to accept ewallets.

"The opportunities and benefits of new payment and distribution channels such as mobile are clear, but these bring specific challenges," said Mike Parkinson, vice president of airlines at WorldPay, UK. "Airlines can be notoriously siloed. However for mobile and other new payment technologies to be successful, all departments - finance, operations, loyalty, ecommerce and now new mobile/innovation teams - will be required to align and work closely with a common goal."

Image via Shutterstock

Tags: airline industry, mobile, payments industry, travel research

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