Travel companies’ profit margins are pummeled at every turn by the cost and administration of payments. Combine this with their need to settle transactions instantly due to working capital limitations and those costs begin to squeeze profit margins even tighter. The challenge for Online Travel Agents (OTAs) does not stop there. Having to pay multiple suppliers, via multiple payment methods in multiple currencies across multiple countries – reconciliation becomes a mind-numbing process. OTAs are screaming out for a solution to these problems. Enter, Ixaris. A payments optimization innovator that is shaking up payments for the travel industry – and beyond. Ixaris eases the squeeze the travel companies feel, transforming payments from a profit-draining necessity to a fully optimized revenue stream.
With a five-year track record in travel payments, Ixaris is boosting margins by up to 34 percent for its customers, from the world’s largest travel brands (loveholidays, eDreams ODIGEO) to independent travel agencies. Boasting a broad card catalogue, supporting both Visa and MarsterCard Payments, in addition to having access to the Global ACH Network, Ixaris makes it easy for the CFOs of OTAs. Given access to both prepaid virtual cards and credit to support their working capital pool, the opportunities for OTAs are endless. “It does not matter what payment an OTA has to do; We dynamically allocate the right virtual card through our optimization engine on the right scheme with the most suitable economics for the relevant use case or geography that the transaction is occurring,” explains Aran Brown, CEO of Ixaris.
We dynamically allocate the right virtual card through our optimization engine on the right scheme with the most suitable economics for the relevant use case or geography that the transaction is occurring
Ixaris transforms payments for over 200 customers in 50 countries. Taking a unique consultative approach to payments, the company caters to the specific need of each client. Having partnered with the world’s largest GDSs, Sabre and Amadeus, Ixaris is aiming to ease the squeeze for as many OTAs as possible.
The onboarding process for OTAs can be extremely quick, often completed in as little as three weeks from the point of engagement to ‘go live’ date. The company has an open API sandbox which allows for super quick integration for those who are suited to this technology. Alternatively, for those who do not wish to integrate via API, Ixaris offers a white label portal as well as a purpose-built platform for independent travel agencies. Ixaris offer support, advice and insight into how to get the best out of using virtual cards – making it an easy solution to implement.
In a compelling success story that highlights the ease with which the company revolutionizes payments, Brown recounts how a client was able to drive €50 million of consumer spend through Ixaris’ platform on a prepaid basis. The client had a working capital challenge whereby they were waiting two to three days for the acquirer to settle their transactions. As a cash-rich business, Ixaris gave their own funds to the client in the form of a credit line to allow them to drive a greater volume of payments on virtual cards. The result was immediately evident - in a space of six weeks, the client managed to triple their monthly volume.
With an established client base in Europe where the market is predominantly prepaid, the company is also planning to launch the solution in the U.S. market. This geographic expansion is built upon a need for a credit-based model in the U.S., where they will be able to provide working capital to the OTAs. Ixaris is making breakthroughs in the Payments space. Furthermore, plans to launch in Latin America are in motion, along with an aggressive rollout strategy within Asia Pacific post-investment. “While we recognize that travel is an area that has allowed our business to grow at 75 percent year on year, getting the best out of technology to other verticals is of much greater essence to us,” concludes Brown.
Payment Optimization into Light, Innovating Cross-Border Finance for OTAs and Travelers
FREMONT, CA: Financial technology innovator, Ixaris teams up with Banking Circle, a financial service infrastructure company to support and streamline cross-border payments for the travel industry and leading to higher revenue by leveraging the latter's Virtual IBAN technology.