UATP, a global travel payment network, has partnered with Paymagnet to supply member airlines with the capability to accept contactless card payments directly within an airline's mobile app on any NFC-enabled smartphone.
Any transaction that can be processed on a POS system can now be completed on a smartphone with Paymagnet. In order for it to work, the client will have to tap a credit card near the smartphone’s NFC sensor, and Paymagnet will then scans the card, validates it and processes the payment, the companies said.
Since a physical card must be present at payment, travelers are protected from stolen card number fraud.
Paymagnet executive director Martin Glettler said: "This strategic alliance provides UATP Merchants with Paymagnet's anti-fraud approach to accept mobile In-App card payments tailored to the airline industry.
"The initial focus of the partnership will be to work with Low Cost Carriers in Europe, where in some areas contactless payment penetration is up to 40-50%."
UATP president and CEO Ralph Kaiser said: "UATP connects airlines to alternative forms of payment brands across the globe; by adding Paymagnet, we enhance our portfolio and are able to offer contactless payments, which is only expected to continue to increase with the recent European mandate that all POS systems must have contactless payment acceptance capability by 2020."