POPULAR PAYMENT METHODS IN AIRLINE APPS - 2Q19

Going by the trend of personalizing everything for the consumer, global airline apps offer multiple options for payment that their users can choose from. An analysis of 66 airline Android apps, as part of videc’s App in the Sky 2019 series concludes that credit card remains a popular payment method supported by airlines, which is a reflection of user preference in most markets. Privacy and simplification of the payment process remains a priority. As consumers diversify how they pay for things, airline apps need to broaden their payment offerings.

POPULAR PAYMENT METHODS IN AIRLINE APPS

CREDIT CARDS

The percentage of airlines offering payment via credit marginally went up this quarter to 95% but it was already 94% to begin with this year. This is the most popular mode of payment on airline mobile apps, and only those airlines who do not have native apps are considered as exceptions.

Base: 65 airlines | View Methodology

DEBIT CARDS

Although considered a faster and cheaper mode of payment, debit card options were available only with 70% of the total airline apps – same as the previous quarter. This could be a factor of certain regions/countries, especially Asia and South America, where use of debit cards is more pervasive than credit cards.

Base: 65 airlines | View Methodology

DIGITAL WALLETS

Even though e-wallets like WeChat Pay, AliPay, Paytm, PayPal, and OVO offer users the convenience of storing multiple payment methods in a single application, they are the least integrated payment method across global airline apps. This could partly be due its local nature steeped with unique regulations. To succeed, therefore, digital wallets must deliver compelling value propositions that are strong enough to dislodge card-based payments.

Base: 65 airlines | View Methodology

INTERNET BANKING

From 39% of airlines offering this option last quarter to just 23% in 2Q19, Internet banking seems to be losing its sheen for airline payments, despite being a direct payment method used by billions worldwide for instantaneous and virtually-free payments settlement. Reduced incidence of debit cards could also be attributed to the rise of digital wallets which is all about convenience due to its all-in-one-payment method.

Base: 65 airlines | View Methodology


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