Hyper-localisation is driving a more complex and fragmented payments market making the need for orchestration every more important, the UATP Airline Distribution summit was told.<\/p>\n
That was the view expressed in a session discussing the future of alternative forms of payment involving airlines and payment companies.<\/p>\n
David Sykes, chief commercial officer at Klarna, said: \u201cWhat we are seeing in payments generally is hyper-localisation.<\/p>\n
\u201cIf you are offering services in Sweden you need Klarna, but you also need Swish, in Amsterdam you need Ideal. In ecommerce changes in payments mix\u00a0 can make a big difference in terms of conversion.\u201d<\/p>\n
UATP\u2019s senior vice president commercial Zach Ornelas, said the key factor in alternative payment adoption is less about maturity of the market, and more about relevancy.<\/p>\n
\u201cThe relevancy changes region to region, and sometimes demographic to demographic \u2013 that\u2019s what we look at to be relevant.\u201d<\/p>\n
Liam Nuttall, Etihad Airways payments manager, agreed there was a regional disparity in terms of the take up of alternative forms of payment.<\/p>\n
\u201cIn some markets we are relatively mature, adding new forms of payment quite regularly. That said, in some emerging markets that\u2019s not necessarily the case today.<\/p>\n
\u201cI do not think we are there yet, but it\u2019s an evolving journey. And as we are trying to match those consumer expectations, they are constantly changing as well.\u201d<\/p>\n
Mette Evensen, Norwegian Air payment manager, said the Nordics had been fast-moving into the alternative payments sector.<\/p>\n
\u201cA lot of innovation in payments has come from the Nordics,\u201d she said. \u201cIn other countries we have not been that fast but we are working towards it.\u201d<\/p>\n
Laura Miller, chief revenue officer and global head of ecommerce at acquirer Nuvei, said technology is a key indicator of the level of maturity of the alternative payments market.<\/p>\n
She said another indicator is the level of revenue optimisation and cost reduction by using the right payment methods \u201cend-to-end\u201d in the right markets.<\/p>\n
To achieve this payments orchestration Evensen is vital based on individual\u00a0 transaction-level data provided by acquirer partners so the right payments options are chosen.<\/p>\n
\u201cWe really want to have all the data so we can optimise,\u201d she said. \u201cIt\u2019s key for us to be as cost efficient as possible. It\u2019s also about conversion.<\/p>\n
\u201cYou can introduce alternative forms of payment that isolated have a lower conversion but if you isolate it on an individual customer level it\u2019s important you measure conversions on a customer level.\u201d<\/p>\n
Miller said orchestration comes in many forms from relatively simplistic to more sophisticated that take context into account and manage traffic flows.<\/p>\n
One of the main reasons airlines need orchestration is to work some redundancy into the systems to mitigate challenges like technology and credit risks.<\/p>\n
\u201cThere is not one provider round the world that can provide every single thing to every airline customer,\u201d she said.<\/p>\n
Nuttall said as an always open 24\/7 business Etihad Airways needs risk protection. \u201cTwo years down the line and what we are starting to see is the speed to market we can bring.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Hyper-localisation is driving a more complex and fragmented payments market making the need for orchestration every more important, the UATP Airline Distribution summit was told.<\/p>\n","protected":false},"author":120,"featured_media":183401,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,1131,35,39,4041],"tags":[],"class_list":["post-183400","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-airlines-airports","category-industry-news","category-low-cost","category-technology","category-tech-digitisation"],"yoast_head":"\n