Paysafe has announced a new payments ‘safeguarding’ acquiring model for airlines in the U.S. and a partnership with ARC, the Virginia-based provider of settlement services for airline transactions initiated through travel agencies in the U.S. and global data solutions.
It will see Paysafe offer ARC’s airlines a payments acquiring solution that seeks to give them financial flexibility from the traditional approach of tying-up the airlines’ liquidity with their banks to cover risk, which has proven increasingly challenging during the COVID-19 pandemic.
Paulette Rowe, CEO of the Integrated and Ecommerce Division (IES) at Paysafe, commented: “It’s been a challenging time for airlines around the world, and, as a specialised payments provider to the travel industry, we understand how hard it is for airlines to have their liquidity tied-up by acquiring banks.
“Our ‘safeguarding’ solution provides an innovative workaround and should really support airlines as they return to growth and emerge from the pandemic.”
Paysafe also allows airlines to offer travelers an extended choice of payment methods for direct sales. In addition to credit or debit card payments processed through Paysafe’s leading payment gateway, travelers can also pay using the Paysafecash eCash solution as well as more than 100 other alternative payment methods, all protected from chargebacks.
Jennifer Watkins, Director, Payments at ARC, added on the importance of the offering: “2020 brought unprecedented challenges to the air travel industry, bringing to light the fragility of the relationships between airlines and payment providers.
“These relationships are particularly important for airlines focused on growing their business in the U.S., since 90% of transactions processed through the ARC settlement system are paid for with a credit or debit card.
“We are thrilled to be working with Paysafe to offer a new and innovative option for payment processing, helping set airlines up for success in the U.S. market.”