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The return of travel following the impact of the pandemic is testing airlines in various ways, not the least of which is their openness to payment methods beyond cards in what for them is a global market. That new emphasis, combined with a need to work with multiple acquirers, is leading some carriers to adopt payments orchestration, a technique that allows merchants to reach several acquirers and accept a range of new payment types beyond cards on one platform. The latest example is Virgin Atlantic Airways Ltd., the United Kingdom’s second-largest airline, which early Monday announced it will work with CellPoint Digital, a London-based technology platform, to expand its payments reach.
CellPoint is expected to support Virgin Atlantic’s plan to “add multiple new acquirers and payment methods…in the coming months,” said Yasin Demir, head of distribution and payments at the carrier, in a statement.
The move to use payments orchestration also stems from the fact that, as the world recovers from Covid-19 and travelers return, the use of cards for payment is diminishing, according to the airline. “As we emerge from the pandemic, fewer travelers are using cards to purchase tickets, with the convenience of mobile devices, e-wallet options, and QR codes transforming the way they pay for airline tickets,” said Kristian Gjerding, CellPoint Digital’s chief executive, in a statement.
This could be particularly important for global carriers flying from and to a variety of destinations with their own payment methods, according to CellPoint Digital. Gjerding cites research indicating that 84% of air travelers use alternatives to cards.
The signing of Virgin Atlantic follows several rounds of investment in CellPoint Digital by Toscafund and Penta Capital totaling more than $56 million. The company was founded in 2007.
In related news, Garmin International Inc. on Monday announced a smart watch aimed at pilots that includes the company’s contactless-payment technology. The D2 Mach 1 GPS aviator watch features a battery life up to 11 days, and helps with navigation and gives weather reports, along with other features, according to Garmin.
The device, which sells for either $1,299.99 or $1,199.99, depending on the type of band the customer chooses, can be used with both Android and Apple smart phones, Garmin says.
