Case Study: “Cash-less Cabin” Solution

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The Challenge

GuestLogix™ Inc., a leading technology provider to the global airline industry wanted to deploy an in-flight credit card payment system. They saw the opportunity to drive incremental revenue by mitigating cash-payment inefficiencies while effectively fulfilling consumer purchase requirements and improving satisfaction levels. This was a defined gap in payment solution offerings primarily related to connectivity constraints and GuestLogix needed a partner who could rapidly leapfrog the current industry offerings.

The Solution

BluePay Canada, in collaboration with GuestLogix, created a new payment category for airlines. They developed a “cashless cabin” philosophy which translated into a custom white-label platform that has evolved over the years into a proprietary best-in-class model.

The technology platform is now used by a majority of the world’s airline traffic because it eliminates cash-payment revenue inefficiencies – while providing demonstrable value to clients, partners and passengers.

Establishing the new platform meant creating a catalogue of new services and technologies tied directly to the core airline industry:

  • A batch-based payment gateway
  • Web-based reconciliation portal
  • Real-time and offline EMV authorizations (chip and pin)
  • Custom reporting
  • Proprietary pre and post-transaction fraud detection tools

 The Results

Since inception, the global airline industry has quickly prioritized the payment solution as a meaningful innovation workstream, with over 50% of the world’s airlines implementing the solution cashless system within the first 5 years.

Creating a new payment category with flawless technology permitted faster and larger authorized payments and increased airlines’ “Revenue per Available Seat Mile” (RASM), a key performance metric for airlines. JetBlue is on record stating that moving to the “cashless cabin” almost doubled their onboard ancillary revenue within the first week of launch.

BluePay Canada refined GuestLogix’s original initiative and enhanced the solution for partners, customers and consumers, which led to positive responses and support from key stakeholder groups, such as The Association of Flight Attendants.

The technology solution also eliminated the need for flight attendant manual cash management significantly reducing theft and shrinkage, thereby mitigating risk and lost revenue.

“BluePay Canada incubated the launch for our very first airline client with American Airlines in 2006. This was the start of our onboard retail technology platform… this partnership was an integral part of getting us there.”

– Tom Douramakos, Founder and Former CEO, Guestlogix Inc.

Have a unique payment problem in need of a niche solution? Contact BluePay Canada today.