Barid Update June 2018 Thomas Hedberg – Aviation Industry Analyst hedbergt@iata.org NewGen ISS 1
Update
NewGen ISS Program Components � IATA aims to deliver a more relevant, secure and customer-centric Passenger Agency Program through the following NewGen ISS initiatives: Agency Accreditation Models Remittance Holding Capacity $ Global Default Insurance IATA EasyPay 3
IATA Transparency In Payments Update June 2018 To represent, lead and serve the airline industry 4
Transparency in Payments Topics: � Recap on TIP � TIP Resolution Framework � What is the impact of R890? � TIP Timelines 5
Context for TIP Changes in payment landscape New players & solutions Resolutions need to evolve 6
Which objectives? IATA & industry stakeholders involved Transparency & Control Efficient framework & tools 7
Benefits Transparency and control Airline consent policy management Monitor compliance New ways of remitting funds to airlines Enrolment of own cards Airline consent database 8
Transparency In Payments – TIP solution Customer Payment A1 Pass-through Pass-through of customer’s card of customer’s card Today Customer Payment Agent remittance to the Airlines A2 ($$$) BSP “Cash” B1 Customer’s card $$$ (or other instrument) Monies held in trust IATA EasyPay B2 Tomorrow Alternative B3 Transfer Methods 9
TIP framework - 4 principles � Providers enlist � Product enrollment 1. Transparency � Airlines to follow-up with � Individual airline consent 4. Agents 2. Individual Infringement Airline o On bilateral basis , or and consent o Via the Travel Agency consequences Commissioner 3. Transaction � 2 steps of validation: validation and monitoring o Upfront validation o Post-ticketing monitoring 10
How does it work? Alternative Transfer Method Provider Enrolls 1 TIP product repository Checks 3 Airline Airline consent Consents 2 Validates / 4 BSP monitors Agent TIP Reports 5 post- Upfront transaction validation monitoring If infringement Bilateral discussion 6 11
In summary Each Airline to define its policy based on transparency Each Agent to use new transfer methods with consent March 2018: initial launch in limited countries End 2019: worldwide full implementation 12
TIP on IATA.org � TIP’s new webpage on iata.org: www.iata.org/tip � Including link to TIP APJC Video � Link to TIP Reso (section “Resources”). 13
Proposed new / changes to Resolutions Effective Progressive Mar-2018 Effectiveness worldwide Mar-2018 to Amended Resolution Resolution Dec-2019 812 package 890 Progressive Allow TIP rollout Effectiveness Mar-2018 to Dec- Transition Resolution 2019, (rescinded 896 once all countries under r812) 14
Impact of R890 on Airlines and Agents Amended R890 effective worldwide 01 st of March, 2018 “3.4 This Resolution gives authority to accept only a Customer Card when using the card acceptance merchant agreement of the Member/Airline to collect payment for the sale of passenger air transportation and Ancillary Services. The Agent may not accept any other card or payment method that uses the Member/Airline’ card acceptance merchant agreement, including any card issued in the name of the Agent or any Person permitted to act on behalf of the Agent, unless specifically authorised by such Member/Airline . A failure to comply with the present paragraph 3.4 will be undertaken under the sole responsibility and liability of the Agent toward the Member/Airline concerned.” 15
Impact of R890 on Airlines and Agents � Resolution 890 � allow use of Agent-own cards and Alternative Transfer Methods only if permitted by the Airline � will be effective 01-March 2018 worldwide . � until the functionality in TIP becomes available, Airlines and Agents must manage their consent (if any) bilaterally. 16
Schedule - TIP roll-out sequencing vs. NGISS PAConf vote Sep 2018 Jun 2018 Mar 2019 Dec 2019 Mar 2018 “Initial “Full R.2 R.3 Launch” Launch” Country Roll-out Initial Launch - Mar 2018 Country Roll-out Full Launch by Mar 2019 � � Pilot Countries � Full functionalities * In line with NewGen ISS Waves � Core functionalities � possible flexibility * dependent on implementation by GDS/TSP 17
Schedule - TIP roll-out sequencing vs. NGISS We are here 2018 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec FUNCTIONAL 1. TIP product 1. Airline 1. TIP product enrollment: IMPLEMENTATI enrollment: consent: by Agent (Agent’s own card) ON by ATM provider Agent level (BSPlink) 2. Airline consent: 2. Post-transaction monitoring: (BSPlink) product & country Statistical analysis (BSPlink) 4. Post-transaction 3. Upfront validation – API / CAC * Monitoring: 4. FOP codes proposal* : enrolled & known BINs CCAC/CCVA (BSPlink/iBSPs/SF) (BSPlink) Catch up NewGen 2018 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Wave 2 – G3 W1 W2, G1 Wave 2 – G2 TIP ROLLOUT Wave 3 – G1 * Capability Available – implementation depends on GDS readiness 18
Transparency in Payments TIP Wave 1 Go-Lives Notice of Migration to TIP Market Resolution 896 Go-Live (60 days) Norway 08-Feb-18 09-Apr-18 Finland 15-Feb-18 16-Apr-18 15-Feb-18 16-Apr-18 Sweden Iceland 10-Mar-18 09-May-18 Denmark 10-Mar-18 09-May-18 17-Mar-18 16-May-18 Canada Bermuda* 17-Mar-18 TBD Singapore 24-Mar-18 23-May-18 * BSP Bermuda Go-Live subject to confirmation based on Airline Readiness for NewGen ISS. 19
Transparency in Payments TIP Wave 2 (Group 1) Go-Lives Market Notice of Migration NGISS and TIP to Resolution 896 (60 effective date days) Estonia Mon 30-04-18 Sun 01-07-18 Honduras Mon 30-04-18 Thu 16-08-18* Hungary Mon 30-04-18 Sun 01-07-18 Latvia Mon 30-04-18 Sun 01-07-18 Lithuania Mon 30-04-18 Sun 01-07-18 Panama Mon 30-04-18 Sun 01-07-18 * Honduras under review Following countries to be aligned with NewGen ISS schedule 20
TIP Country Waves (aligned with NewGen ISS waves) Migrations waves subject to change / Countries may be prioritized/delayed based on operation needs and readiness (subject to PSG approval) 21
Current functionalities available Define consent policy for enrolled products Alert on new Provider/products available Post-Transaction monitoring reports Consult for an Airline which product(s) it has given consent to Setup email alert to be notified of new/change to Airlines’ consent 22
ATM Products currently enrolled Country ATM Product Norway Finland Edenred vPay Sweden Denmark Iceland (None) I use a product that is not listed? � Ask your provider to contact IATA to enroll its product 23
Thank you, Questions? To represent, lead and serve the airline industry 24
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