Singapore-based payments platform Nium has introduced a new closed-loop payments solution for airlines, travel agents, and online travel agencies (OTAs).
Dubbed Nium Airline Payments (NAP), the tool has been empowered by universal air travel plan (UATP).
The closed-loop payments model has been designed to eliminate surcharges and business that limit non-acceptance policies that have increased the cost of B2B travel payments.
Nium has developed NAP using technology from Ixaris, a travel payments optimisation provider that it bought last year.
NAP removes intermediaries, which levy charges, from the payment flow.
This helps airlines to create transparent incentives for OTA partners, taking into account routes, seasonality, business volumes and others.
Nium offers confirmed payment acceptance for airlines since they already have the capability to accept payments via the UATP network, noted the company.
The company’s payments process complies with International Air Transport Association (IATA) Resolution 890 and has been registered under the IATA TIP (Transparency in Payments) scheme.
Air Europa has already contracted Nium to address issues related with conventional card payment methods through NAP.
Nium head of travel Spencer Hanlon said: “Without payments, there can be no sale and we are very honoured to help Air Europa resolve what has been one of the biggest airline distribution conundrums of the internet era: do I increase my distribution at the price of accepting high payment fees, or limit distribution to partners who offer better payment terms but reduce overall sales opportunities?”
In May this year, Nium announced the expansion of its real-time payments offerings worldwide by launching real-time payments in Malaysia.