30th March 2024
By: Bryan Obala
Membership & Communications, KATA
During the inaugural Payments Summits, the International Air Transport Association (IATA) provided a comprehensive overview of innovations in IATA Payment solutions. This presentation, led by IATA’s Country Manager East Africa, Agnes Mucuha, highlighted the organization’s Focus Africa initiative. This initiative is dedicated to maximizing aviation’s contribution to African development by enhancing services for passengers and shippers.
Focus Africa Initiative: The Focus Africa initiative, spearheaded by IATA, is geared towards delivering measurable improvements in six critical areas: safety, infrastructure, connectivity, finance and distribution, sustainability, and skills development. Of particular relevance to the Payments Summit discussion was the focus on finance and distribution, aiming to accelerate the implementation of secure, effective, and cost-efficient financial services, alongside the adoption of modern retailing standards.
IATA EasyPay (IEP): A significant aspect of the presentation centered on IATA EasyPay (IEP), an optional pay-as-you-go solution designed for travel agents. IEP provides a simpler and more secure method for transacting with airlines through the Billing and Settlement Plan (BSP). It’s noteworthy that IEP is a closed-loop electronic payment solution, voluntary in nature, and devoid of any charges, offering greater flexibility and choice for Accredited Travel agents to manage their business challenges.
From left: Agnes Mucuha, Country Manager East Africa, International Air Transport Association (IATA); Hamisi Hassan, Vice Chairman, Kenya Association of Travel Agents (KATA)
Advantages for Participants: IATA outlined the advantages of IATA EasyPay for participating Airlines and IATA Accredited Agents:
- Voluntary: IEP is available to all IATA accredited agents, with the decision to use it resting with each agent. It does not intend to replace existing payment methods in the BSP.
- Secure: IEP ensures security by requiring agents to fund their IATA EasyPay account. The system verifies fund availability at the time of ticket issuance, mitigating the risk of chargebacks for airlines.
- Fast: IATA settles IEP amounts to airlines on a daily basis through existing BSP processes, ensuring prompt transfer of funds within 48 to 96 hours following ticket issuance.
- Economical: With low transaction costs, IEP proves to be more cost-effective for airlines compared to credit card transactions.
- Flexible: IEP transactions are secure, allowing agents to lower their financial security amounts with IATA and issue transactions outside their cash issuance capacity.
Expansion in Africa: An exciting revelation from the presentation was that the IATA EasyPay service is now available in 27 countries across Africa. Moreover, IATA is actively collaborating with authorities to expand into additional markets, demonstrating a commitment to support Africa’s aviation industry and modernize financial services and solutions across the continent.
In summary, IATA’s presentation at the Payments Summits provided valuable insights into the innovative strides being made in IATA Payment solutions, particularly through the introduction of IATA EasyPay. As the initiative gains momentum and expands its footprint across Africa, it promises to revolutionize financial transactions within the aviation sector, benefitting both airlines and travel agents alike.