CellPoint Digital is on a mission to modernise airline retailing, enabling airlines to enhance their digital capabilities and deliver more personalised customer experiences. If measured by success in raising capital, notable customer wins and product innovation, then it is delivering on ambitious targets it has set itself.
Douglas Blakey speaks with Tom Randklev, Head of Product, CellPoint Digital
Tom Randklev, the firm’s head of product, tells EPI that CellPoint Digital’s payment orchestration platform speaks travel fluently. In every currency and across every border and through every channel. It is built for airlines transitioning to modern retail, designed for hotels expanding globally and engineered for travel merchants ready to optimise every transaction.
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The new standard in travel payments
“We specialise in optimising payments, especially within the airline and travel industry. Payment orchestration has become kind of a big buzzword recently, but it really focuses on optimising travel and airline payments across multiple regions, across multiple currencies, and then, of course, optimising this experience in a way that reduces costs and increases revenue.
“The launch of the new cloud native CellPoint Digital payment orchestration platform is probably one of my most proud moments. It is one of the most exciting things that the company has had the ability to do.
“With the experience of our team and its deep expertise in the travel industry, we have the ability to launch a platform that aims to simplify complex payments processes, enhance transaction efficiency and really support modern retail practices within the travel sector. We’re transitioning at a time that the entire travel industry, especially airlines, are modernising the way that they approach retailing. So, we’re moving hand in glove at a time when this is a real benefit to both ourselves and to our customers.”
What is a payment orchestration platform?
In summary, it is a more advanced solution for businesses looking to optimise their payment processing.
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By GlobalDataUnlike payment service providers (PSPs,) which act as a single provider handling all payment processes, POPs integrate multiple payment providers into a single platform. This allows businesses to manage and optimise payments through multiple gateways, acquirers, and payment service providers. It is, essentially, a hub that connects businesses to various payment providers, enabling greater flexibility, optimisation, and scalability.
POPs such as CellPoint Digital offer advanced functionality by managing multiple payment methods and processors in real-time. It routes transactions based on factors such as cost, performance, customer location and transaction type. This dynamic decision-making ensures that businesses offer the most efficient and cost-effective payment options to their customers.
Randklev adds: “Traditionally, one of the biggest problems that airlines face is their global reach and then there is the complexity of their operations. A lot of these groups have a single acquirer, single payment provider or fragmented systems and legacy systems. This leads to higher fees, failed transactions and ultimately to lost revenues. Partnering with a payment orchestrator like us means that we manage these transactions at every stage, from authorisation, routing, settlement reporting and not to mention that we also provide, diverse payment methods, which improves these cross-border transactions.
From cost centre to business opportunity
“It creates localisation, and it helps many of these customers to offer a better customer experience for their clients. It also reduces a lot of their costs and increases revenue in ways that they haven’t experienced in their existing platforms.”
He says that most travel merchants have traditionally seen payments as more of a back-office function. But now there is a trend towards payments offering the potential to offer new revenue opportunities. In other words, payments are transformed from a cost centre to a business opportunity.
Capital raise boosts global ambitions
CellPoint Digital announced a funding round of $30m last November. This latest round of funding followed an investment in 2022, which saw CellPoint Digital raking in $25m from Toscafund and Penta Capital, who initially invested in the company in 2019. The funding is enabling CellPoint Digital to deliver on its goal of expanding its footprint across key markets and positions the company for long-term scalability.
Notable contract wins include deals with Riyadh Air, Air Europa and Southwest Airlines.
Another notable agreement was announced in April, between CellPoint Digital and leading global travel technology, Sabre Corporation. The deal gives airlines using SabreSonic and Radixx access to a wide range of payment methods and value-added services, streamlining payment processes, enhancing the user experience, and reducing operational costs.
The integration of Sabre and CellPoint Digital means that airlines now have the freedom to choose from an extensive range of payment options, including international card networks commonly used for global transactions and digital wallets. It also includes other non-card-based methods that offer consumers more flexibility at checkout, alternative ways to pay that might include deferred payment or mobile-based solutions, and direct bank-to-bank transfers enabled by real-time or open banking systems.
