Customer Success Story: How Malaysia Airlines Simplified Payments with Outpayce XPP

Simplifying payment processes for customers, the technology offers a single, panoramic view across the airline’s entire global payment flows.

Today, the way travelers prefer to pay is evolving, with an explosion of new digital payment methods co-existing with traditional card payments. According toAmadeus figures , 85 per cent of travel companies have observed an increase in the number of methods used by travelers to make payments over the past three years.

In response, Malaysia Airlines aims to offer the relevant payment methods to customers across any market and through any channel, while accounting for local market dynamics within their global networks. This may entail partnering with multiple providers worldwide, along with the associated administrative burden.

The challenge, therefore, lies in satisfying the evolving demands of travelers without incurring the additional cost of managing different payment suppliers in each market.

As Malaysia Airlines continues its global expansion, venturing into new markets and working to accept new payment methods while enhancing payment analytics efficiency, XPP will serve as a vital component of its success.

The end-to-end payment platform is designed to empower Malaysia Airlines by providing control over payments, offering a seamless experience – all in one place.

With an array of powerful tools aimed at enabling the carrier to receive payments cost-effectively, XPP streamlines operations for professionals within the airline and its partners, including travel sellers and hotels. For travelers, XPP accommodates an expanding range of payment options, encompassing credit cards, debit cards, mobile payments, and online wallets. The latter, especially popular in key Asian markets, contributes to its growing appeal.

This solution simplifies payment processes, minimising disruptions and potential transaction failures throughout the booking process. Consequently, it enhances the overall customer experience and boosts acceptance rates, resulting in a smoother journey for all parties involved.

Malaysia Airlines has seen authorization rates increase by 3-4 per cent since the debut of XPP due to the real time rerouting capability of PSP (Payment Service Provider) & Acquirer.

By expanding the range of acceptable payment methods and minimising friction, Malaysia Airlines is able to accommodate the preferences of a wider customer base. This, in turn, enhances conversion rates, boosts sales, and contributes to overall customer satisfaction.

Malaysia Airlines signed a new, expanded partnership with Amadeus in spring 2022. The multi-year deal agreement encompassed the adoption of Altéa NDC, Reference Experience and Dynamic Intelligence Hub while renewing its Amadeus Altéa Passenger Service System contract.

The suite offers modern retailing capabilities and provides a more seamless and direct approach to booking flights. Additional capabilities include dynamic pricing and personalization features, access to richer content, and the ability to select seats – all of which will help Malaysia Airlines on its journey to becoming the leading aviation services group in Asia.

XPP was a central component of the collaboration, with Malaysia Airlines being offered the opportunity to trial the product for six months prior to official adoption, an initiative that bolstered confidence and paved the way for a seamless integration.

Today, XPP is instrumental in realising Malaysia Airlines' ambitions in three key ways:

• Drive customer experience: Payment plays a key role in enhancing the customer experience, both by offering improved security and a simpler payment experience. Through XPP, Malaysia Airlines advances both aspects across its direct channels.
• Conversion and acquisition: Leveraging XPP's capabilities, Malaysia Airlines tailors payment options to match customers' geographical locations and local preferences. As a global airline, this allows the carrier to acquire new customer segments, creating new revenue opportunities.
• Cost efficiency: XPP effectively curbs payment-related expenses, encompassing both technical and operational dimensions, ultimately lowering the overall cost associated with each sale. 

XPP represents a significant leap forward in payments for Malaysia Airlines, granting the carrier absolute control over payment configurations.

This signifies that Malaysia Airlines no longer needs to engage with multiple partners. When it comes to simulations and customisation, the carrier assumes full authority. Customisable parameters also mean the airline can set its own dynamic rules and even simulate strategies to ensure the performance of the payment system is optimised.

The integration of new payment solutions into the platform, facilitated via APIs, can be accomplished within a matter of days in certain instances. This capability holds great importance for an airline aiming to promptly respond to the evolving payment preferences of travelers.

Outpayce's position at the center of the travel ecosystem, alongside Amadeus, is indispensable in the creation of XPP.

Outpayce and Amadeus have access to high-quality, real-time, actionable travel and payment data, consolidated in one place. This significantly improves reporting, enabling Malaysia Airlines to gain a solid understanding of payment channel performance and make better decisions.

The XPP interface has been meticulously designed and built based on extensive user testing and feedback. Malaysia Airlines can now monitor transactions, receive alerts on fraudulent activities, easily customize reports, define dynamic rules, reconcile data, and much more – all within a single,easy-to-useinterface.

Furthermore,smart optimizationleverages a combination of machine learning and manual feedback to ensure Malaysia Airlines' payment system is optimized for acceptance costs and risk.

Travel is inherently global, and XPP has been designed to provide a matching global payments experience. Outpayce, a part of Amadeus, is positioned at the center of a partner ecosystem that includes hundreds of payments and retail partners worldwide. This network comprises acquiring and issuing banks, local payment methods, payment service providers, fraud prevention providers, and currency partners.

With Malaysia Airlines expanding its routes from Kuala Lumpur to destinations in the Middle East (such as Hamad International in Doha) and Asia (including Tokyo International Airport in Japan and Yogyakarta International Airport in Indonesia), having a global payments presence is now more essential than ever.

Following XPP integration, Malaysia Airlines has witnessed a reduction of payment errors by 5-8 percent.

Gaike explains: "Malaysia Airlines has concentrated on implementing XPP within the domestic market, resulting in improved conversion and acceptance rates. As we continue to extend our international reach, we are introducing the platform to new markets, aiming to leverage these advantages on a global scale."

Currently, Malaysia Airlines is engaged in an ongoing collaborative process with Outpayce, offering feedback and aiding in the enhancement of XPP to create an exceptional user experience.

For instance, XPP will soon be upgraded to provide notifications whenever conversion or acceptance rates dip below a specific benchmark. This functionality aims to promptly alert to emerging issues, and XPP will subsequently propose diverse solutions to address these challenges.