Avinode’s PayNode to Revolutionize Charter Payments
Payment is the last major pain point in the business jet charter industry. The procedures are inefficient, costly and insecure, placing unnecessary strain on brokers and operators’ cash flows, as well as giving customers insufficient protection of their payment details. But that’s about to change with the launch today of PayNode, by Avinode, the world’s largest online marketplace for buying and selling private air charter.
PayNode is the world’s first payment service provider created to support the global business aviation industry, says Magnus Henriksson, its global business director. The service is designed to bring the payment process into the digital world from its current cumbersome, manual, paper-intensive traditions.
“Imagine eBay without PayPal,” says Henriksson. “Well, that’s how the charter industry is today.”
Typically brokers and customers meet online (such as on Avinode’s Marketplace) and arrange a charter. As with an airline, you cannot board the charter jet until paying for the ticket – so who pays, and when, especially when charters are commonly booked only 48 to 78 hours before departure? Very often the broker must foot the bill while waiting for payment from the customer.
“The average transaction is $35,000,” says Henriksson. “When you consider that we list 3,200 aircraft, have 12,000 customers, some 7,000 professionals a day using Avinode, and 450,000 flight requests a month, you can see that the sums of money involved are very substantial. Now we are set to disrupt the multi-billion-dollar business aviation payments market.”
PayNode lets customers pay directly for business charter flights with an American Express credit card. This will be followed soon by the ability to include bank wire transfer payments, instant settlement, notification and fund movement.
Anybody can sign up for PayNode, but they must use the American Express card. There is also a payment processing fee.
Customers could, and still can, pay the broker with their own credit card, but this is inherently risky in that details taken over the phone, scans of credit cards and passenger IDs are often not stored securely to the highest industry standards. PayNode removes these risks.
One more benefit: Customers or brokers decline one out of seven trips because of payment issues, “and that’s a huge amount of business,” Henriksson says. PayNode is expected to reduce this number substantially.
Avinode is owned by Multi Service Technology Solutions, a global transaction management company. It, in turn, is owned by World Fuel Services Corporation.
Orignial article: Avinode’s PayNode to Revolutionize Charter Payments