Globally, 66% of airline merchants are seeing fraud levels stay the same or increase as they lose 1.5% of booking revenue to fraudulent transactions, according to the global Perfect Passenger Payment insights report, commissioned by WorldPay. Worryingly, this could be set to increase, with 29% of airlines reporting that incidents of fraud have risen in the past year.
The good news for airlines is that customers are happy to accept a robust screening process when buying tickets online. 71% of consumers would prefer a slower payment process with more rigorous security checks than a faster process with fewer checks.
The global study surveyed 51 airline merchants, including low cost, regional and global airlines and 4,500 consumers from the US, UK, China, Japan, Brazil, Finland, Spain, Germany and France to explore views on the online booking process for buying airline tickets, findings included:
- alternative payments – 84% of airline merchants plan to offer more choice in payment types in the next two years. 38% of consumers would use a different airline and 48% would consider doing so if their preferred airline no longer accepted the payment method they wanted to use
- mobile payments – 58% of consumers would like to use their mobile device to pay for a flight in the future. 1.5% of airline online booking revenue lost to fraud, but customers prepared to accept robust screening. Most want payment by mobile.
This survey shows the need for constant attention to fraud prevention, for providing the payment systems options that consumers require otherwise you will lose business, and that accepting payments from mobile phones is close to becoming essential.