IATA Urges Airlines to Review Their Payment Strategies

Tashkent, Uzbekistan (UzDaily.uz) — The International Air Transport Association (IATA) has called on airlines to rethink their approach to managing payments, noting that payment convenience and reliability are becoming key drivers of sales success and passenger satisfaction.

Nick Careen, IATA senior vice president for operations, safety, and security, said the process of purchasing an airline ticket is completed only after a successful payment transaction. If this step proves difficult, slow, or fails to offer a customer's preferred payment method, the airline risks losing the sale.

According to data from IATA's Global Passenger Survey 2025, 17% of passengers who attempted to buy ancillary services, such as paying for baggage or selecting a seat, were unable to complete the purchase. The primary reasons were a failed initial payment attempt and the lack of an alternative payment option.

The association emphasized that the efficiency of a payment system affects not only an airline's revenue, but also the speed of receiving funds, operational costs, and risks associated with fraud and failed transactions.

According to a joint study by IATA and consulting firm Edgar, Dunn & Company, airlines processed payments totaling approximately US$977 billion in 2024. The total costs of processing these transactions reached US$22.2 billion.

IATA noted that there is no universal payment method. For individual passengers, payment speed and simplicity remain top priorities, while corporate clients require tools that ensure expense approval, reporting, and compliance with internal procedures.

The association also pointed to the rapid development of payment tools. Although bank cards maintain a dominant role, instant payments and digital wallets are gaining growing popularity. If an airline does not offer a customer's preferred payment method, the likelihood of the customer abandoning the purchase increases significantly.

To improve payment processing efficiency, IATA is developing its IATA Financial Gateway (IFG) and IATA Pay services.

In addition, the association introduced a new methodology, the Airline Payment Framework – Management Foundation, which proposes evaluating payment solutions not only by their cost, but also taking into account their impact on customer experience, settlement speed, risk management, refunds, chargebacks, and cash flow.

IATA considers the new methodology particularly relevant amid the development of the Modern Airline Retailing concept, which includes personalized offers, an expanded range of ancillary services, and dynamic pricing.

According to the association, payment infrastructure has become one of the key elements of commercial efficiency for airlines in the modern environment.