Smarter Payments, Stronger Skies: Revolutionizing Aviation Costs & Revenue
Introduction
From London to Lagos, New York to Nairobi, the aviation industry is undergoing a significant transformation. As passenger demands increase and airlines strive to recover from post-pandemic losses, a common theme dominates boardrooms: reducing operational costs while unlocking new revenue streams.
Recent sweeping tariffs across various countries by the United States have led to global market disruptions, coined as ‘Trade Wars 2.0’. Analysts forecast that these moves would disrupt supply chains and cause inflationary spikes, affecting industries from tech to transportation.
While major markets brace for the oncoming trade winter, the reverberations are already felt across distant tarmacs in Nairobi, Lagos, Johannesburg, and Accra. For Africa’s aviation industry, where every dollar counts and global volatility adds pressure to already tight margins, external shocks like these underscore the urgent need for resilience.
Payments, a Contributor to Growth
In Africa, where mobile money surpasses traditional banking and where airlines are urgently looking for ways to streamline operations and tap into underutilized markets, smart, secure and flexible payment systems could be the catalyst for growth. From ticket bookings to in-flight purchases, payments sit at the very core of every traveller’s journey.
According to McKinsey & Company’s Airline Distribution and Retailing Report, payments account for over $20 billion in direct costs globally each year, equal to nearly 3% of airline industry revenues and an eye-watering 78% of net profits. That’s a massive margin opportunity for carriers, especially in competitive markets like Africa, where efficiency can define profitability
Revenue Meets Reach: Catering to Diverse Payment Preferences
Against this backdrop, Africa presents a unique blend of challenge and opportunity. The continent is home to the fastest-growing youth population, increasing digital adoption, and a mobile-first payment culture. This is where Network’s payment solutions come into play.
By offering acceptance across mobile money platforms, QR codes, cards and even Buy Now Pay Later (BNPL)options, Network’s payment solutions are able to help airlines and travel providers tap into a broader and more inclusive customer base. This heightened reach translates to better customer conversions, more bookings and ultimately increases revenue.
It is not just about accessibility. McKisney notes that there are approximately 2.9 billion airline booking payment transactions across the world annually, accounting for around $1 trillion in value. However, most airline bookings are abandoned at checkout, often as a result of limited payment options. Therefore, by giving travelers a variety of secure, regionally relevant choices, airlines can recover lost sales and boost conversion. The biggest challenge here is the cost of setting up a variety of payment options, and payment service providers need to provide solutions that are cost-efficient during setup.
As an example, Network offers a unified platform where merchants can collect payments from different channels, whether in person or online, without the need to invest in multiple platforms. Regardless of whether a traveler is booking with M-Pesa in Nairobi or using BNPL in Lagos, Network makes the transaction effortless and secure.
Moreover, they offer a refreshingly simple and cost-effective setup experience. Unlike many providers in the same space who add barriers via setup or integration fees, Network completely removes them. From equipping a large-scale airline reservation system to a single airport check-in desk with a POS terminal, they waive the upfront costs. Devices arrive fully set up and ready to go, allowing merchants to start accepting payments with no technical hassle or setup period needed. This decision serves as a streamlined approach to support the aviation industry’s need for efficiency and scalability, right from the get-go.
Real-Time Payments, Real-Time Cash Flow
Speed is currency in aviation. A delayed payment can mean a missed booking or even an empty seat on a departing flight. Real-time payment remittances are not just a feature; they are a financial advantage.
Network’s real-time payments infrastructure allows for funds to be processed instantly, giving airlines immediate access to revenue and immediate booking confirmations to travellers. This reduces the need for short-term borrowing to cover operating costs, which, according to McKinsey, is an issue that costs the industry over $ 2 billion in 2019 alone.
Fighting Fraud without Adding Friction
Fraud remains a costly challenge in the global aviation industry, with airlines being targeted in nearly 46% of all online travel fraud cases. If left unchecked, this can balloon into millions in annual losses. Payment providers must provide solutions to customers on how to safeguard their payments and those of their customers.
Network integrates advanced security measures into every transaction. Our AI-powered fraud detection tools monitor for anomalies in real time, while tokenization and multi-factor authentication protect sensitive data throughout the payment journey. This allows airlines to operate with confidence, reducing chargebacks and fraud-related costs without slowing down the user experience. The best part? We save customers the cost of setting up these fraud prevention solutions by ensuring that they are integrated into our packages.
Data-Driven Decisions: Turning Payments into Business Intelligence
Each transaction provides valuable data insights for strategic decision-making. With Network’s advanced analytics, airlines can decode custom behaviours, regional preferences and seasonal demand patterns.
This data can fuel more effective commercial strategies, from launching promotions, refining loyalty programs or personalizing offers. Airlines that leverage smart data and offer personalized offers can drive up to $ 8 billion in additional revenue globally. This is mostly because of better conversion and ancillary sales.
For African airlines, where operating margins are tight and customer expectations are rising, insights like this help to serve a competitive edge.
Powering Africa’s Aviation Growth
As African airlines and travel operators look to cut costs while expanding reach, payment infrastructure becomes a strategic lever. There are three payment-related value creation levers: Lower cost of acceptance, enhanced checkout conversion and interaction with corporate travel tools, each of which can deliver meaningful commercial impact.
From the runway to the terminal and every digital touchpoint in between, Network is honoured to be part of Africa’s aviation future with secure, scalable and future-ready payment solutions. As we gather in Zanzibar for AviaDev Africa 2025, we hope that aviation stakeholders look beyond payments being just a transaction but rather as a catalyst for reducing cost, greater revenue and deeper continental connectivity
