UATP & Burbank boost airline security with card present tech

UATP and Burbank have announced a partnership to deliver secure card present payment options to airline merchants over internet channels.

The partnership will enable airlines across Asia Pacific and beyond to process transactions with the same security and efficiency as in-person payments by integrating Burbank's Card Present over Internet (CPoI®) technology into the UATP network. This initiative addresses challenges associated with online payment fraud and operational costs for merchants in the airline sector, a market estimated to be worth USD $837 billion.

Online fraud landscape

Online payment fraud remains a significant concern for merchants, with over USD $40 billion lost annually to fraud and chargebacks. The rate of payment fraud is increasing by 69% per year, while chargebacks have risen by 52%. In addition to these losses, merchants face costs from false positives-legitimate transactions erroneously flagged as fraudulent-which total USD $443 billion a year, with 65% of blocked transactions being false positives.

Burbank's CPoI® technology turns mobile phones into point-of-sale devices, addressing fraud risks associated with card-not-present (CNP) transactions. This method allows customers to complete online purchases by tapping their payment cards against their mobile devices and securely entering their PIN, emulating the in-store experience. Authorisation rates for card present transactions are typically 5-10% higher compared to traditional CNP payments.

"This partnership reflects UATP's commitment to working with leading payment innovators to meet the evolving needs of our Merchants" said UATP President and CEO, Ralph Kaiser. "By combining our payment processing expertise with Burbank's groundbreaking CPoI® technology, we are delivering a solution that meets today's market demands while creating significant cost savings and revenue opportunities for Merchants."

Security and liability

The ability to process card present transactions online provides significant advantages for merchants, particularly around security and liability. When transactions qualify as card present, liability remains with the card issuers rather than the merchants, helping to reduce potential financial exposure. Additionally, merchants save on processing costs by reducing scheme fees, minimising chargeback and servicing costs, and removing the need for complex orchestration that CNP payments often require.

This approach also helps minimise fraud costs by reducing the dependence on anti-fraud artificial intelligence systems and security protocols like 3DS, which are typically necessary for CNP transactions. The reduction in chargebacks further lowers total costs and reputational risk for merchants, according to details provided by UATP.

Benefits for airlines

Airline merchants, including UATP account issuers such as Air New Zealand, China Eastern Airlines, and Qantas, will be among the first to benefit from the partnership. The roll-out is expected to raise online payment security standards for airlines and travel business partners connected to the UATP closed-loop network.

Discussing the broader implications for online commerce, Burbank Chief Executive Officer, Justin Pike, commented:

"Through CPoI®, we're synchronising in-store security capabilities with digital payment systems. Our goal is to transform online commerce by drastically minimising fraud and eliminating false positive, challenges consistently hurting businesses' revenue," stated Justin Pike, CEO of Burbank. "CPoI® will expand online shopping accessibility to a broader customer base, providing superior transaction protection while enhancing merchant fraud prevention standards."

Industry context

The partnership brings together UATP's established payments network, used for business travel bookings by major carriers and agencies worldwide, and Burbank's platform for secure online payment processing. UATP accounts are issued by a wide range of airlines and travel businesses in Asia Pacific and around the globe, supporting a broad scope of merchants with its technology and data solutions.

Burbank specialises in security-focused fintech solutions, utilising EMV cryptography to achieve card present transaction standards digitally. This joint effort aims to address persistent challenges in digital commerce for high-volume merchants by lowering transaction costs and enhancing payment performance.