The payments market is growing at warp speed. Global revenues from mobile payments will reach $620 billion (USD) in 2016 and rise to $1 trillion by 2019, according to recent data from TrendForce. What’s more, the number of different payment methods available to consumers and passengers is increasing exponentially across the globe.
Apple Pay now has 12 million monthly users, while rivals Samsung Pay and Android Pay each boast five million monthly users, based on a March Bloomberg News article. These mobile wallets are classified as alternative payment methods (APMs) because they fall outside of the traditional card-based network dominated by Visa, MasterCard and American Express. As consumers shift from plastic and card-based payments to mobile payments and digital currencies, APMs are expected to account for 55% of global e-commerce sales by 2019, according to stats cited in a recent CardNotPresent article.
The bottom line: businesses, including airlines, that do not enable simple and secure mobile payments and APMs for their customers are leaving potentially tens to hundreds of millions of dollars in revenue on the table, both in direct-channel and ancillary sales. When passengers want to pay and transact from their smartphones as they travel, airlines should make it easy for them to do so.
On May 25, CellPoint Mobile launched Google’s Android Pay with Emirates, enabling the international carrier to become the world’s first airline to integrate “Buy with Android Pay” as an in-app payment option.
Android Pay, now available on the CellPoint Mobile platform in the US and UK, is just one among many APMs that CellPoint Mobile offers to its airline customers and their passengers. Other APMs supported on the CellPoint Mobile platform include Apple Pay, Samsung Pay, Visa Checkout, Amex Express Checkout, MasterPass™, China UnionPay, Sage Pay, Skrill, m-pesa™ , pre-paid cards and loyalty program rewards/miles, as well as legacy APMs that include Alipay™ and PayPal®.
To help your airline get up to speed with the ever-changing mobile marketplace and the rapid growth and adoption of APMs, contact us today to learn more.