Lufthansa and Amadeus partnered together as the firsts to adapt Amadeus Airport Pay across its former’s network of 170 airports worldwide (Related News). We explore further use cases for this system and future development that would benefit both Amadeus, airlines, airports and travellers.
Amadeus Airport Pay – Quick Overview
Amadeus Airport Pay simplifies current payment processes by adding a terminal component commonly used at retailers, service providers and restaurants. This replaces payment systems where travellers paying ancillary products and tickets would hand over their credit cards to an airline agent to swipe at their end terminal to process and sign. This method is not the convenient, compatible or secure.
With the partnership in place, the Lufthansa Group including Lufthansa, SWISS, Austrian Airlines, Eurowings and strategic partners Brussel Airlines and SunExpress can adapt to this technology quickly. In all, more than 310 destinations over 100 countries are served by the Group. Amadeus Airport Pay can be easily implemented across the entire airline group which will introduce the following benefits:
- Better purchasing power for the Group will reduce overall costs to implement and maintain the terminals and service.
- Training can be done as a Group so that procedures can be consistently applied. Employees across the entire group can share best practices.
- The terminals used are portable and may be used in different parts of the airport. They can also be certified for use on board if the aircraft has a WiFi connection in the future.
- Payment processing is completed in a secure manner which reduces fraud risks.
- The payment liability shifts to the customers’ bank.
The airline can improve customer experience by:
- Providing a common payment interface which will add familiarity.
- Ease of use and quick processing reduces travel anxiety.
- Transactions can be completed at check-in counters which reduce time.
- Payment can be made for all ancillary products and services (Related Insight).
- Customers will receive a more relatable payment receipt for record keeping or expense reporting purposes.
Payment Type Expansion
Currently, only Visa, MasterCard, and American Express cards are accepted at these terminals. It would be important to extend the technology to work with other credit card issuers from technology savvy countries like Japan (JCB – 70 million users) and China (Alipay – 520 million users) in the near future. Further down, it may be worthwhile to allow payment methods from transit cards like London’s Oyster, Tokyo’s Suica and Hong Kong’s Octopus cards for more seamless travels.
Build Stronger Loyalty
Lufthansa created a stronger brand and loyalty following by creating the Miles and More Status Stars program (Related Insight), further innovation with Amadeus can improve how travellers can interact with the terminals beyond traditional debit and credit cards and into other options such as miles, cash/miles, and airline cash credits, etc.
Transportation Mode Extension
Lufthansa is one of the few airlines in the world to allow for ticketing across multiple transportation modes (e.g. rail) (Related Insight). It would be useful for Amadeus to extend this solution beyond airport payments in the future to manage transaction earlier in a traveler’s journey.
Alliance Wide Adaption
Quick success and Lufthansa’s influential position as a founding member of Star Alliance could lead to the airline alliance adaption of this technology across all 28 members in a cost efficient manner. This will allow for easier transfer of fee payments. Additionally, it will provide a consistent customer experience around the world which the alliance touts as a key benefit.
There are a lot of use cases for the Amadeus Airport Pay solution currently. Future development across airline alliance, different transportation modes and payment type expansion can increase adaption rates and create a better customer experience.