The UK travel fintech says work on branding has raised its profile and helped it achieve record months so far in 2022
TravelTech Show: Pax2Pay targets European growth as virtual card use increases
Travel payments technology specialist Pax2Pay is seeing successive record months as the use of virtual cards for B2B payments in travel becomes more widespread.
The UK-based firm is looking to expand in overseas markets as it seeks more channel partners to embed its payments technology into booking flows.
Having been born out of supporting agents to fulfil lowcost flight bookings, the firm is now rolling out an enhanced PCI compliant bulk upload solution for hotel payments.
Tony Hart, executive director business development, said: “My remit is to find customers in EEA countries like Poland, Italy, Germany and Sweden to expand our direct customers in those markets.
“We see channels as a big opportunity for us to be in booking flows to use our solution efficiently and easily. Another big focus for us this year is our enhanced hotel product.
“This year has been very positive. We’ve seen record months each month. We are seeing the fruits of work we did back in 2020 signing businesses who did not do too much with us initially.”
Pax2Pay’s single API enables the use of virtual cards for payments as well as bank transfers using faster payment technology.
Hart said the solution protects its customers from foreign exchange fluctuations, provides some supplier failure cover and for larger clients offers a revenue share opportunity.
Pax2Pay also has a more automated solution for SMEs but does not offer a revenue share opportunity for companies with lower volumes.
Although many airlines consider virtual cards to be expensive, their use has grown rapidly in recent years as agents look for more efficient ways to pay suppliers and avoid the risk of paying cash.
Hart said the larger OTAs in Europe are looking to use more than one partner to spread their risk and Pax2Pay’s investment in branding has put it on the radar.
“We’ve built a bit of brand recognition and the work we have done getting our brand out there means we will be part of the mix. We may get 10% or 20% of their virtual card spend,” he said.
“You cannot have such a one-sided view where the OTA is taking all the risk by paying in cash.
“Airlines have got it in their heads that virtual cards are expensive. There has to be a meeting of minds about the risk and cost of acceptance.”