Nov 22, 2022
Nium has announced the launch of Nium Airline Payments (NAP), a closed-loop payments solution powered by Universal Air Travel Plan (UATP).
NAP provides airlines, travel agents, and online travel agencies (OTAs) with a sustainable and equitable ‘closed loop’ payment model, which closes the door on damaging surcharges and business restricting non-acceptance policies that have inflated the cost of B2B travel payments for decades. Technology for the solution comes to Nium via its acquisition of travel payments optimization leader, Ixaris, in 2021.
Among the first to contract with Nium for the solution include Air Europa which has tapped the global payments company to solve some of the inequities associated with traditional card payment models. Today, traditional card payments offer travel agents and OTAs financial incentives that strike at the core of an airline’s razor-thin margins.
The closed-loop Nium Airline Payments solution eliminates margin-eating intermediaries from the payment flow, giving airlines the flexibility and control to design transparent incentives for OTA partners, based on routes, seasonality, business volumes, and more.
Unlike other payment programs, Nium’s process guarantees payment acceptance for the airlines, as they are already wired to accept payments through the UATP network. Meanwhile the process is IATA Resolution 890 compliant and registered with the IATA TIP (Transparency in Payments) program.
All of this means that Air Europa can finally benefit from significantly reduced per payment cost savings, faster settlement times, and flexible incentives for sellers – all without requiring any additional technical integration.
“Without payments, there can be no sale and we are very honoured to help Air Europa resolve what has been one of the biggest airline distribution conundrums of the internet era: do I increase my distribution at the price of accepting high payment fees, or limit distribution to partners who offer better payment terms but reduce overall sales opportunities?” Spencer Hanlon, Head of Travel at Nium, stated.
“We were very inspired by Nium’s innovative approach to create an alternative payment method, being proud to offer it to our B2B partners,” Yago Casasnovas, Head of Payment, Fraud Prevention and Distribution from Air Europa, added. “We are communicating the availability of this new option to our travel agencies, tour operator and TMC customers and we hope that they will soon join us in taking advantage of the benefits of using it.”
The post Nium unveils ‘closed loop’ payments alternative for airlines and OTAs appeared first on AIR CARGO WEEK.
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Author: Edward Hardy