Amadeus applies for eMoney license for smooth travel payments
To support customers and the wider industry, as the pace of innovation continues to accelerate, Amadeus has applied to the Bank of Spain for an eMoney license to provide regulated services in Spain and, subsequently, the wider European Economic Area. Companies with an eMoney license can provide payment services such as accepting customer funds, issuing pre-paid debit cards, or offering transfers of funds on a payment account. As part of this strategy, Amadeus’ existing payments business will become Outpayce, a wholly owned Amadeus company, with assets and employees transferring to the new entity on 1st January 2023.
The focus for Outpayce will be to strengthen its current end-to-end payments offering as well as develop an integrated payment ecosystem to which travel companies can connect to access the latest fintech innovations.
As an Amadeus wholly owned company, Outpayce will continue supporting the payments needs of airlines, travel sellers and corporations, with the aim to improve the end-to-end payment experience for travelers and for customers in B2B payment transactions. The growth plans include several key elements: Open payments platform: The travel industry is seeing an explosion of innovation as new services like Multi-Currency Pricing, Buy Now Pay Later, and Embedded Finance help travel companies deliver the payment experience travelers have grown to expect.
The current payment solutions will incorporate open API-based development environments that will facilitate innovation in travel by making it easier for third-party payments and fintech companies to provide services to the industry. Airlines, hotels, and travel sellers using the platform will be able to access a wide choice of payments services from Amadeus and third parties through a single connection. The current platform provides services from trusted partners such as Citi, Mastercard, and Paypal amongst many others, and we will work to expand this partner network.
eMoney license and creation of Outpayce: The first regulated service Outpayce intends to offer if the license is granted is pre-paid virtual card issuing within its B2B Wallet solution, which travel agencies use to pay travel providers such as airlines and hotels. Including Outpayce issued cards alongside a wide range of options from partner issuers will provide travel agencies with greater choice and an improved payment experience.
New hires: Over the next few years Outpayce plans to invest in its growth by hiring additional payment experts and technology engineers globally to support its product development and business expansion plans. David Doctor will transition from his role as Executive Vice President, Payments at Amadeus to lead Outpayce as its CEO from 1st January 2023.
David Doctor, Executive Vice President, Payments, Amadeus said: “Payments are an integral part of the end-to-end travel experience. Our aim is to ensure a smooth, integrated and connected payments experience in travel, whether that’s paying with virtual cards in the B2B space, or a traveler choosing to pay in the currency of their choice with foreign exchange services. Through our application for an eMoney license combined with our investment in talent and technology, we’re well placed to improve our current service to customers as well as expand the range of services, geographies, and customers we serve. A continued and expanded partnership with the fintech community is central to our vision.”
Decius Valmorbida, President of Travel, Amadeus added: “Travel is undergoing a once-in-a-generation digital transformation which means we can better connect the different stages of the traveler journey. Simplifying how people pay at booking, the airport and the hotel is fundamental if the industry is to maximize this opportunity. With this investment, Outpayce is ready to simplify travel payments across the entire trip.”
Amadeus, in collaboration with third parties, currently provides services to merchants like airlines and travel sellers so they can accept the widest range of card and local payment methods through websites, mobile, call centers and physical touchpoints, such as check-in desks. Its second line of business, payer services, helps travel sellers make B2B payments to airlines and hotels using modern methods like virtual cards with its B2B Wallet solution. Outpayce will continue to provide all current services as well as building a range of new products through in-house development and partnership.