Even though they share similar challenges around the costs and complexity of rolling out mobile payment capabilities to today’s raised-on-mobile travelers, airlines and travel companies launching mobile commerce strategies because that’s where the market, today’s travelers and new revenues opportunities are taking them.
Our newly published Airline Industry Brief is based on a 2017 CellPoint Mobile-commissioned study of airline payment experts in North America, Europe and Latin America – all of whom share common challenges and opportunities around mobile payments:
- 48% of customers are younger, raised-on-mobile travelers who are receptive to mobile payments
- 46% of airlines say mobile payment are increasingly easier because of improved Wi-Fi connectivity during travel
- 43% say travelers in their marketers are already using mobile payments and mobile banking services
- 41% say more passengers in their key markets now have smartphones
- 39% say more alternative payment methods (APMs) are available in their markets
Says one of the respondents, “It is important to be easy to do business with, and mobile payments are necessary to be competitive in this market.”
By region, payment experts in the Americas are more likely to cite customer demographics as a primary driver of mobile commerce strategies – 56% in North America and 50% in South America, compared to 42% in Europe/UK. But the same European/UK (50%) and South American (40%) experts say the availability of more APMs is a key factor in their decision to roll out new payment solutions, a response chosen by 22% of North American experts.
But across the globe, airline payment experts also face similar challenges as they shift from online and card-based payments to payments made from smartphones, digital devices, apps and even wearables.
- 41% say integrating new APMs is costly
- 30% say integrating new APMs is complex and time-consuming
- 30% describe outdated payments systems/databases as a limiting factor
- 30% worry about security issues, fraud and data breaches
- 26% say lack of executive support for mobile payment capabilities is a hindrance
Respondents to our survey are airline finance, payment, mobile payment and revenue managers.
The good news is that awareness is growing in the travel sector around the technology, behavioral and revenue opportunities that exist around mobile payments capabilities. In parts of China, in fact, more payments are now made on mobile devices than on desktops or computers – a trend that no doubt will eventually spread to the rest of the world.
Airlines and travel companies must prepare to make mobile payment capability a reality soon, because the market is headed that way.
Find more information in our report now, and let the CellPoint Mobile team know how we can help you overcome the challenges and seize the opportunities that exist right now for your company’s mobile payment and mobile commerce plans.