This method leverages Open Banking technology, allowing clients to make bank-to-bank transfers via an online platform instead of using cards, which incur fees for agents. This initiative is the result of a collaboration between the agency consortium and payment specialist Boodil, announced at the Advantage conference in Costa Mujeres, Mexico.
The new system integrates a branded payment portal into the agent’s website to promote the use of Open Banking. This portal enables agents to collect customer payments securely and remotely, without manual intervention. Payments can be collected in person, through a unique customer link, or via a QR code sent by SMS or email.
The consortium highlighted that this approach would lower business costs associated with card payment processing and provide an efficient payment method for clients. It also allows for scheduled payments, enabling agents to manage travel payments over time.
Open Banking in travel
According to travelweekly.co.uk, Open Banking technology is relatively new to the travel industry, where card payments are still predominant. However, the same source reveals that it is widely used in other sectors, with a reported annual growth rate of 69% in transactions.
Representatives from Advantage emphasised the importance of offering various payment options to consumers. While card payments remain popular, the new Open Banking method presents a modern alternative that is expected to gain preference over time. In essence, the partnership with Boodil aims to provide members with an additional payment option and reduce merchant processing costs.
Boodil’s co-founder expressed enthusiasm about collaborating with The Advantage Travel Partnership to support member businesses with their cloud-based payment solution, designed to simplify and secure payment collection while being cost-effective and easily integrated.
In a similar development, Boodil launched its Pay by Portal solution in May 2023. The new platform allowed businesses to benefit from A2A payments without the need for costly card fees. With this new offering, Boodil aimd to help merchants realise the benefits of Open Banking payments, as Pay by Portal allowed merchants send payment links to customers via SMS, email, or a generated QR code.