What is IATA EasyPay, and how does it benefit airlines?
IATA EasyPay is an e-wallet solution which agents can use to issue airline tickets through the BSP.
IATA EasyPay is a new industry payment method exclusively for the issuance of tickets through the Billing Settlement Plan (BSP). Based on a ‘pay-as-you-go’ model, IATA EasyPay provides a secure alternative to the traditional BSP Cash and BSP Card payment methods and will be available globally to all IATA-accredited agents and BSP-participating airlines.
IATA EasyPay operates as an electronic wallet, whereby funds are secured at the time of ticket issuance. In order to use this payment method, agents open and fund their own dedicated IATA EasyPay e-wallet. At the time of ticket issuance, agents will enter an IATA EasyPay number, generated via the IATA EasyPay system, in their GDS. This prompts an authorization request to the IATA EasyPay system. If there are sufficient funds available in the related account, the funds will be blocked in real-time, an authorization generated and the ticket issued. Once blocked, the respective funds can no longer be used for other purposes. As a private payment instrument, there is no future risk of chargebacks for airlines.
IATA EasyPay amounts are then settled to Airlines through the BSP 48-96 hours following ticket issuance, allowing airlines to benefit from an accelerated cash flow. In addition, airlines benefit from a low cost per transaction of approximately USD 0.53.
IATA EasyPay is a key enabler of the NewGen ISS program, including the new agency accreditation framework. By offering a secure alternative to BSP Cash, IATA EasyPay facilitates the introduction of GoLite Accreditation which will creates an opportunity for airlines to transact with more travel agents, should they choose to do so, through the BSP.
For agents accredited under the GoStandard and GoGlobal accreditation models, IATA EasyPay works in conjunction with the Remittance Holding Capacity (RHC) – a maximum threshold for agent Cash sales pending remittance via the BSP. IATA EasyPay allows agents to continue to transact with airlines in case they have reached their RHC.
Do we need to do anything to be able to accept IATA EasyPay transactions?
Once introduced in a BSP, IATA EasyPay is available by default to all participating carriers.
However, IATA EasyPay is a distinct form of payment from BSP Cash and Card, with its own reporting and reconciliation process. Airlines will want to assess how IATA EasyPay may impact their internal processes to ensure strategic, technical and organizational readiness for this new payment method.