Airline apps that do not support digital wallets
Low-Cost Carriers vs. Full Service Carriers
Airline apps offer a multitude of payment options for their users. videc’s App in the Sky 3Q19 series analyzes 48 full-service (FSCs) and 22 low-cost carriers (LCCs) Android apps. The analysis reveals that credit card remains a popular payment method supported in airline apps. This is a reflection of user preference in most markets.
All 22 LCC mobile apps and 48 FSC apps analyzed offered users the option of paying through credit cards in 3Q19.
Although considered a faster and cheaper mode of payment, debit card options were available across 91% of the LCC apps. For FSCs, this stood at even lower 77%. Such incidence could be a attributed to certain regions/countries, especially Asia and South America, where use of debit cards is more pervasive than credit cards.
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 among the least integrated payment method across global airline apps. 3Q19 statistics reveal that 50% of LCCs integrated digital wallets as a payment option, slightly higher than 40% for the FSCs. To succeed, therefore, digital wallets must deliver compelling value propositions via discounts and rebates, to dislodge card-based payments.
There is a huge disparity between the number of LCCs that offer Internet banking to its users as against the traditional ones. While this tips at 32% for LCCs, only 10% of FSCs offered e-transfer to their Android users in 3Q19. 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. This could be a consequence of digital wallets in respective market.