Phocuswright Europe: Prepare for innovation in payments, says Amadeus

Automated technology ‘can save 1% of transaction costs’ Continue reading →

Travel firms can save 1% of their total transactions by using automated technology that decides which optimised payment methods.

In November last year Amadeus’s payments business launched Orchestration for its B2B payments wallet.

Dan Greaves, senior manager marketing, said 39% of travel agents use corporate payment cards to pay suppliers, and many have up to seven, each with different commercial terms.

These cards also offer users different levels of rebates and firms also have to factor in foreign exchange rates.

He said of the 40 partners who have signed up to use Orchestra one with a total spend of €3.1 million has saved €300,000, or 1%, as a direct result of integrating the system.

Greaves said it was vital that travel firms grasp this issue now with the payments sector poised to go through a “Cambrian explosion in innovation”.

“The payments industry is going through huge amounts of innovation. We are already looking at alternative payment methods like bank direct and probably blockchain.

“There is a lot more coming we do not even know yet. Right now is the time to get your arms around payments methods that work for each transaction.”

Greaves said there is also such a variance of regulations in payments that companies need to have a variety of payment methods available to them.

However, he believes blockchain could be a “step towards” moving to a single payment method for all transactions.

Amadeus says travel agencies pay €300 billion to suppliers each year. The firms B2B wallet offers agencies up to nine different payment methods in a single connection.

Orchestration was voted the winner at Phocuswright Europe’s Launch contest for innovative new products or services from established firms.