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Credit card payment processors are about to take flight

March 28, 2014

The use of credit cards and debit cards via mobile devices won't be relegated to the ground floors for much longer: one recent report noted how even airlines are hoping to accept such payments in the near future.

The use of credit cards and debit cards via mobile devices won’t be relegated to the ground floors for much longer: one recent report noted how even airlines are hoping to accept such payments in the near future. 

Citing information obtained by WorldPay, Mobile Commerce Daily recently reported that the number of airlines offering on-board mobile payments via new credit card and debit card payment processing terminals will increase significantly in the next two years – from 5 percent to more than 35 percent. According to the report, many airlines hope to accept mobile payments for items and services such as seat upgrades, in-flight entertainment and more. Mike Parkinson, vice president of airlines at WorldPay, noted that this is an absolute necessity in order for airlines to keep up with other industries.

“To remain competitive, airlines need to align their payment offerings with customer expectations,” Parkinson told the news outlet. “The opportunities and benefits of new payment and distribution channels such as mobile are clear, but these bring specific challenges … Airlines can be notoriously siloed.”

Half of all airlines identified mobile payments as a way of keeping up with their competitors, 45 percent of airlines see mobile payments as an avenue toward improving revenue, and more than 80 percent of airlines see the improvement of payment processing technology as a major business priority. All these facts illustrate just how important it is for organizations to advance their manner of accepting transactions as they grow and draw in more revenue. 

“The most surprising finding was the speed of change in the industry and the overwhelming intent by airlines to both invest in and use mobile services and payments,” Parkinson concluded.

Consumers want to make payments with mobile devices – but they don’t want to be tracked by them
Here’s another important finding for businesses considering how they can optimize use of mobile phones: while consumers are open to the idea of making payments via the devices, they don’t want to be tracked through them. Internet Retailer, citing statistics provided by OpinonLab, recently reported that 77 percent of adults said they do not want to be tracked by retailers when they’re shopping in stores. Almost 45 percent of respondents even said they would be less likely to shop at an outlet if they found that the retailer tracked their movements and actions via their mobile phone. 

“Consumer sentiment shows that retailers need to tread lightly when it comes to tracking shoppers on their mobile devices,” Jonathan Levitt, chief marketing officer at OpinonLab, told the news outlet.

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