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 4Q19 series analyzes 77 full-service (FSCs) and 33 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 LCC and FSC apps analyzed offered users the option of paying through credit cards in 4Q19.
Although considered a faster and cheaper mode of payment settlement, debit cards were available across 82% of the LCC apps and as well as same for FSC apps. Such incidence could be attributed to certain regions/countries, especially Asia, where the 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. 4Q19 statistics reveal that 45% of LCCs integrated digital wallets as a payment option, slightly higher than 39% for the FSCs.
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 21% for LCCs, only 14% of FSCs offered e-transfer to their Android users in 4Q19. 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.