Payment Innovations Broaden Opportunities in Global Travel

Ben Sibbald didn't plan to revolutionise airline payments when he moved from London to Germany in the run-up to Brexit. The Head of Payments at Hahnair, the leading global provider of airline distribution solutions, made the leap partly out of circumstance and partly out of ambition. His wife had job offers in both Cambridge and Germany, and Sibbald, who had always wanted to explore life overseas, was keen to try life abroad before potential doors closed.

Now, having been happily settled in a village south of Frankfurt for the best part of a decade, Sibbald has spent the past year transforming how one of the world's most extensive airline networks handles payments. His journey into finance began, as he puts it, "by luck" – starting in an outbound call centre before moving through retail banking at HSBC, then corporate banking, and finally payments with CashFlows. That diverse background now is the foundation of his approach to one of the industry's most complex challenges.

German travel giant Hahnair operates at a scale that few companies can match. The distribution provider connects more than 350 airlines with over 100,000 travel agencies across 190 markets worldwide. For context, that means the company facilitates ticket sales in virtually every corner of the globe, from major metropolitan centres to emerging markets. The complexity of managing payment acceptance across such a vast network requires both technological sophistication and deep regional expertise. "We are the bridge between customers and travel companies, helping them to complete the transaction," he says about his team’s role. "If the transaction's not completed, you don't get the service." 

His team constantly evaluates payment methods, determining which are essential, desirable, or could add marketing value. They research options, consult with external partners, implement new payment methods and manage them throughout their lifecycle.

The company's core business model addresses a quite fundamental challenge in the airline industry. Airlines have their core markets and established customer bases, but expanding globally presents logistical and technical hurdles that many carriers struggle with. Hahnair’s services are invaluable here, providing distribution solutions that make airline tickets available through a vast network of travel agents. On the other side, travel agents gain access to hundreds of airlines they might not otherwise be able to offer their customers.

"We're enabling those travel agents to sell more airlines , and at the same time give those airlines access to more customers," Ben explains. This two-sided marketplace approach has made the company, which was founded in 1999, an invaluable piece of the global travel puzzle. The firm has been quietly revolutionising airline distribution for more than a quarter of a century now, and it does not intend to sit still any time soon.

The company underwent a major rebranding to coincide with its 25th anniversary in 2024, in terms of branding, image and technology. It has also launched Distriply, a new brand focused on New Distribution Capabilities (NDC), which represents the airline industry's shift toward more modern, flexible distribution channels. But technology alone doesn't explain the company's success. Ben emphasises that Hahnair's people set it apart from competitors, with account managers who possess deep regional knowledge and maintain strong relationships with partners. “You don’t buy from businesses, you buy from people,” he says.

Different continents, different payment preferences

The technical challenges of operating across 190 markets cannot be overstated. Hahnair currently accepts credit card payments in 112 of those markets, with payment methods available for all 190. The gap exists due to restrictions on card types in certain countries and varying levels of banking infrastructure. Some markets have their own card schemes, whilst others rely on international networks like Visa, MasterCard, UnionPay, JCB and Diners Club Discover.

The company's payment strategy must account for significant variations across markets. While many assume credit cards work uniformly worldwide, Ben explains that practically every country uses credit cards differently and for different reasons. What Europeans might view as unnecessary alternative payment methods are nothing short of essential in other regions. Naturally, this can make things complicated for a payments department, but Ben relishes the challenge. His team starts with a global view to identify quick wins, then moves to solutions that make a real impact for people living within specific countries. "We look at this from a point of view of B2B, so whatever the travel agent wants and needs, we'll supply," he explains.

The company begins with BSP Cash, a payment method used in the Billing and Settlement Plan system that IATA (the International Air Transport Association) operates. From there, they add IATA EasyPay, UATP (Universal Air Travel Plan) card solutions, and international credit cards based on demand and desire.

Virtual credit cards have become particularly important for managing risk. When travel agents use Hahnair as the merchant of record, all transactions come from individual travellers. This creates exposure to chargebacks and disputes. Virtual cards eliminate that risk because they are transaction-specific, tightly controlled, and clearly attributable to a single booking, which lowers fraud and “unrecognised transaction” disputes. The company investigates with agents which payment products best suit their needs whilst minimising risk for both parties.

Account-to-account payment methods present interesting strategic questions. Many new payment methods that generate buzz ultimately rely on credit cards or bank accounts as funding sources. "We'd always ask, what's the funding source?" Ben explains, drawing on his experience working at MasterCard. If Visa, MasterCard, UnionPay, American Express or JCB are already in the payment flow, the company must justify whether adding another layer makes sense.

For Ben’s team, working closely with local professionals or market experts on specific regions is key. “We really rely on the knowledge from our account managers who are dealing with the travel agents,” he says. Someone outside a country might identify a payment method, only to learn from on-the-ground staff that it's only used for small transaction values. Aviation involves significant sums, so payment methods must be equipped to handle appropriate transaction sizes. "The insights we get from sources within a country are potentially better than the insights we get from a provider that's based for example in the UK," he explains.

10 years of collaboration with WorldPay

Hahnair's relationship with WorldPay, the global payment services provider, stretches back nearly a decade and the two firms have formed a tight-knit bond during that time. WorldPay provides merchant acquiring services that enable Hahnair to accept payments globally, alongside file handling services that process transaction data. WorldPay enables Hahnair to integrate payment methods beyond the ones enabled through IATA, significantly broadening options for travel agents and their customers.

"We are a partner at eye-level and our expertise and consultation is highly appreciated," Ben explains, referring to the spirit of candid collaboration he shares with his partners at WorldPay. This consultative approach has delivered tangible results. When Hahnair noticed high dispute rates in a particular region, WorldPay's account manager facilitated conversations with their dispute management team. The companies developed better processes for challenging disputes, leading to massive improvements. The collaborative approach led Hahnair to enhance their already solid setup.

Another breakthrough came when transactions were declining without clear visibility into where failures occurred. Information gaps meant completed purchases were falling through. Discussions with WorldPay revealed configuration issues in how messages were being transferred. Hahnair migrated to WorldPay's service and saw acceptance rates increase by approximately 20 per cent. For a company operating at Hahnair's scale, that improvement translates to millions in recovered revenue.

Cost optimisation represents another area where the partnership delivers value. WorldPay analysed Hahnair's US processing and identified potential savings. Following their recommendation and joint review, Hahnair is now migrating US processing to WorldPay. "The saving is considerable," Ben says. Savings of a couple of cents per transaction multiply across enormous transaction volumes. These conversations emerge from weekly one-to-one meetings where Ben presents ideas and WorldPay assesses viability.

The relationship extends beyond typical vendor-client dynamics too. Ben has direct contact with Thomas Helldorf, who leads WorldPay's airline division. “He literally wrote the book on airline payments,” Ben says, expressing his gratitude for working so closely with such an expert. The two execs often communicate via WhatsApp to discuss new ideas and industry developments. “It's actually amazing to think that the biggest payments company on the planet has that kind of relationship with its customers,” he reflects.

Customer experience and the friction debate

Payment strategy ultimately serves travellers booking trips through agents. For Ben, there are two competing philosophies when it comes to how to improve customer payment journeys. One camp advocates providing maximum choice so customers find exactly the payment method they prefer, whether that's PayPal, Pix, Rupay or Vero. The other prioritises frictionless experiences with single-click payments using Apple Pay, Google Pay or Samsung Pay with biometric authentication.

"The importance is finding a balance," he suggests. Payment choice matters where it's relevant. Companies should offer Vero to European customers, while questioning whether it is the right move to offer Pix or Rupay to everyone. Market-specific targeting makes sense, as does understanding different payment methods' limitations and compatibility.

Travel presents unique considerations around friction too. Unlike buying coffee, for example, booking a holiday involves large sums and is of significant importance to the people making the purchase. At the end of the day, customers want to be assured that their transactions are completed properly. "Friction isn't always a blocker to do a transaction, because of the size and the importance of the transaction," Ben explains. Different markets have different expectations about security measures. 3D Secure authentication, for instance, is acceptable in the UK but can be a challenge in the US.

Financial inclusion is the guiding ideal of Hahnair's payment strategy. With such an extensive network, excluding people due to payment limitations contradicts the company's mission. "The idea of someone not being able to participate in a market place due to a financial obstacle is motivating us to do better," Ben says.

The future of technology in the travel sector

Looking ahead, the future of payment methods themselves may surprise those expecting consolidation. Instead, Ben sees fragmentation ahead. Europe's development of Vero as a regional card scheme seemed unnecessary 15 years ago, but now appears strategic. Turkey, Russia, India, Brazil, Nigeria and Vietnam have all established domestic card schemes too.

"I actually think there's going to be an ever growing number of options, including really country-specific ones as well," Ben predicts. “It is likely that we’ll have a number of super apps that will probably  accept whatever payment method you desire.”

Nations want to control financial communication networks and keep transaction profits within their borders, similar to pressures facing big tech companies. Therefore, the emersion of multiple super apps , each accepting diverse payment methods, is likely. The payment landscape will grow more complex rather than simpler.

Looking to the future, Ben remains sceptical of AI’s role in travel. With AI and agentic commerce already generating enormous buzz in tech circles, it can be easy to lose oneself in the hype. Ben, however, is taking a measured view.

For Ben, accountability is a big challenge when it comes to AI. He cites IBM's principle that computers can never be held accountable and therefore should never make management decisions. Why then, he asks, should we implicitly trust AI with something as personally important as holidays or travel? “If you turn up at a hotel that claimed it was a 5-star, but instead is a building site with a terrible breakfast and awful beds, who do you blame?” he asks.

Currently, Ben and his team remain focused on enabling travel agent partners to do their jobs as effectively as possible. Partnerships continue to be absolutely essential to everything Hahnair does, with airline partnerships, travel agent partnerships and payment provider partnerships all important. These partnerships create feedback loops that drive optimisation. They also drive a healthier industry. "We're always looking at providing the right solutions at the right time, increasing the size of the entire pie, rather than taking a bigger slice," Ben reflects.