IATA Pay responds to rapid changes in the payments landscape.
- Consumers needs are evolving, for instance with millennials’ expectations for mobile and peer-to-peer instant payment.
- New banking regulations in many countries encourage the use of bank account-to-bank account direct payments. Examples of these regulations the EU’s Payment Services Directive 2 (PSD2) and the UK’s Open Banking regulations,
IATA completed the first IATA Pay ticket purchase transaction in a live test environment. The transaction was conducted in partnership with ipagoo, a UK-based fintech company under the UK’s Open Banking framework.
IATA is also working with Deutsche Bank on a prototype for Europe (excluding the UK) under PSD2, starting with the German market, which is expected to undergo testing in early 2019.
IATA expects to conduct similar prototype/pilots in other jurisdictions in 2019.