Delta joins the list of Paypal Carriers. Where is Google?

Accepting the inevitable DL has joined the airlines who are now accepting Paypal. This will really help globalize the financial fulfillment of Airline tickets. US/UA/AA – pay attention this is important. So Google seems to have taken its eye of the ball here too….

Delta joins the Paypals

It seems that someone is listening. We have long advocated the broadening of payment options (we call it financial fulfilment) by established vendors in the Travel and Tourism marketplace. With Northwest and Southwest last year accepting Paypal as a form of payment we now see Delta joining the fold.

Credit cards represent one of the last major controllable cost elements for an airline. Therefore turning to alternative forms of payment keeps a competitive environment. With Visa and Mastercard now public, American Express remains a giant in the charge card space and now Diners Club USA has been acquired by Discover - we see a level of competition and of course PROFIT in the market. This will result in upward pressure of the costs/prices. Airlines have been a cash cow for credit card vendors for many years. Now they are finding alternative solutions.

So chaps - you got this far - what about Google Checkout!!!

Cheers

Timothy

American (AA) finally joins epay - but with a twist

American has finally decided that it can make money from those people who dont want to use credit cards or those people that would prefer a more direct relationship. They are now prepared to accept direct debit via electronic check when buying tickets on the airline’s Web site, AA.com.

“We continue to enhance our AA.com site to make it an unequaled resource for travel planning and trip purchases,” said Derek DeCross, American’s Managing Director – Interactive Marketing. “By adding the ability to pay for tickets with electronic checks, we’re offering customers more choice and greater control over the purchase process. Electronic checks are another example of our focus on making it even easier to do business with American Airlines.”

Now some would say that the process of doing business with AA is not exactly the easiest. (Try deciding you don't want to be an Aadvantage member). But give them some marks for trying this approach. Still there are no airlines yet accepting Google Checkout. I cannot for the life of me understand why. Several airlines (EG Northwest and Southwest) are already using Paypal.

Unfettered and secure financial instruments are needed to power the web to greater heights.

Cheers

Timothy

Such a deal - Paypal: Southwest and Northwest $50 off.

To kick-start usage of Paypal as a form of payment - EBAY has partnered with both the 'wests' to offer $50 off any purchase of $250 or more.

Given the lackluster acceptance so far this is good news. Akin to the Mastercard promo with the launch of Priceline.

Paypal should benefit but the airlines should ultimately benefit more. What's missing, or rather WHO is missing is Google's Checkout. Why aren't they in the game yet. Hello - Sergey and Larry - stop playing with your 767 and get with the program here.

Cheers

Timothy

Southwest jumps onto Paypal bandwagon

So the ball is SLOWLY rolling but definitely there is momentum

We have been advocating the use of non-credit card financial fulfilment for some time. We believe that there are considerable savings in various areas such as cross border payments and reduced credit card fees that can be garnered if the merchant is prepared to "shop" around.

With Visa now experiencing Debit card rates of more than 50% the time is right for the use of alternative solutions such as eBay's Paypal and Google's Checkout services.

Well done WN - any more takers?

cheers

Timothy

NWA - First to cross the barrier wi9th Paypal

Not that we are against the credit card companies in any way - but we have been a long believer that the next major cost battle in airline distribution cost reduction would come in credit card fees. With Google Checkout our dark horse bet - we believe that the airlines stand to gain significant bottom line benefits in enabling non-credit card financial fulfilment from such players as Paypal and Google.

NWA finally becomes the first airline (by our understanding) to announce such a deal. It is even offering bonus worldperks miles to anyone who uses the service.

The leverage that this gains as well as the additional customers it enables is a win win for the airline. We are particularly encouraged about the impact in non-traditional (and therefore emerging) financial markets such as across Asia Africa and Latin America.

Pay attention boys and girls - this is a big shift