September 26th, 2018
Airline Industry And Deutsche Bank To Roll Out Electronic Payment System
Pymts | May 7, 2018
The airline industry, in conjunction with Deutsche Bank, is trying to challenge credit card companies with a new digital payment system to purchase plane tickets.
According to a report in the Financial Times, the real-time electronic payment system is being designed to save the airline carriers billions of euros in transaction fees. The payment systems, which will enable travelers to purchase web-based tickets, will be rolled out in Europe starting toward the end of this year. The Financial Times reported that Germany will be the first market to get the service.
“We are developing an industry-wide payment solution that is an alternative to credit cards,”
Javier Orejas of the International Air Transport Association told the FT. The International Air Transport Association says the airline industry combined pays $8 billion a year in payment processing fees. Visa and Mastercard typically charge 1 percent to 3 percent in fees, noted the report.
The system that is being created by the International Air Transport Association and Deutsche Bank will have fees that are fixed and will be a “matter of cents,” the FT quoted Orejas as saying.
The report noted that thanks to new regulations in the EU that require banks to share account access information with third parties, the new payment system is possible. Under the new system, the customer would add their payment method and enter bank account information, which Deutsche Bank would check in real time to ensure there is enough money, collect the fee and transfer it to the airline.
The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry in Canada. For more information, please visit: ncfacanada.org