Posted on 11/22/2018 at 08:00

Wirecard digitizes payment processes for LATAM Airlines

Wirecard digitizes payment processes for LATAM Airlines

Wirecard reduces cash handling at airports for Latin America’s largest airline

Wirecard, the global innovation leader in digital financial technology, will enable the LATAM Airlines Group, Latin America's largest airline with a current fleet of 312 aircraft and 67 million passengers a year, to offer passengers quick and hassle-free compensation using payout cards in the event of flight disruptions or delay, without cash handling. As of now, affected LATAM Airlines passengers at numerous European airports will receive IROP (Irregular Operations) cards issued by Wirecard to compensate for any disruptions on their journey.

IROP cards enable LATAM passengers to receive compensation for unforeseen circumstances not only quickly and easily, but also in line with the legal regulations that apply in each case. These payout cards are issued to affected passengers and digitally loaded with the applicable amount. Before, large sums of cash had to be dealt with and lengthy, sometimes expensive, transfers had to be carried out. Now, these intuitive payout cards are the perfect compensation alternative for the airline. Passengers can use them to withdraw cash, pay at the point of sale and for online shopping.

Sandra Schlebusch, Finance Manager Europe at the LATAM Airlines Group, said, "Delays and disruptions can never be completely avoided in air travel. In these cases, it is very important to us that we quickly help affected passengers without any unnecessary bureaucracy. The new IROP cards that Wirecard has developed for us are the perfect solution on account of their settlement flexibility. Wirecard's expertise in digital payment was an essential factor in successfully establishing the solution."

Jörg Möller, EVP Sales Travel at Wirecard, added, "The digitization of the airline industry is a major driver of growth. As a result, passenger expectations have significantly risen. Therefore, particularly with regards to a good customer experience, it is important for airlines to offer their customers modern digital solutions with clear added value. The airlines themselves are also benefiting enormously from the launch of IROP cards as they are saving a great deal of time in terms of administration, which results in cost savings as well. We are delighted to be digitizing payment processes for the LATAM Airlines Group."

According to current predictions, the number of flight passengers will nearly double to 7.8 billion worldwide by the year 2036. As passenger numbers rapidly grow, the risk to airlines of delays and cancellations grows with it. As a result, a hassle-free compensation process is currently an important defining characteristic in a very competitive market environment.

A quickly reloadable prepaid card is also a practical solution for airline employees: As well as IROP cards, Wirecard also offers “Crew Cards,” with which travel expenses can be paid quickly and directly to flight attendants and pilots. 

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