Lost revenue at the gate: why airlines can’t afford to ignore airport payment gaps

All too often, outdated payment infrastructure at airports and on flights continues to frustrate passengers and undermine airline revenue potential from ancillary services. As the report ‘Retailing ready: towards traveler-centric airport payments’, jointly commissioned by Worldline and Outpayce, makes clear, strengthening the link between offer and purchase can earn airlines substantial additional revenue while cutting unnecessary hassle for travellers.

Ancillaries are no longer optional extras

Ancillary services have become key revenue generators for airlines. Research from IdeaWorks and CarTrawler estimates that over the span of less than one decade, airlines’ global ancillary revenues rose from USD42.6 billion in 2013 to more than USD102 billion in 2022, accounting for some 15% of total airline revenue. Even more impressive, 2022’s figure almost matched 2019’s pre-pandemic record of USD109.5 billion.

What began as optional extras, like baggage and seat selection, now include priority boarding, lounge access, onboard meals, and more.

However, for all their strategic value, these revenue streams collapse if payment infrastructure fails. Even a well-timed offer at check-in or boarding will not convert if the passenger is directed to a distant terminal desk or forced to leave the boarding zone. According to research for our white paper, 54% of travellers have been sent to another terminal location to complete a payment at least once in the past two years, and 57% encountered outdated mag-stripe readers — a clear barrier between opportunity and conversion.

Revenue leakage from simple refusals

One striking statistic from our white paper is that 56% of travellers reported having an ancillary fee waived because the airline was not able accept their method of payment at the point of need. In many cases, this isn’t a minor cost – passengers typically spend an average of €263 per trip on airport and in-flight add-ons. This means that over half of these ancillary sales vanish before they can complete, translating into a substantial and recurring revenue shortfall.

Even straightforward upgrades or adding extra baggage – if not enabled by real-time, convenient payment options – can slip through the cracks. One airline which deployed Outpayce and Worldline’s ‘Airport Pay’ system realised €300,000 in additional seat upgrade sales during its first weekend of deployment, demonstrating the tangible revenue lift that better integrated payment systems can produce.

The consequences of using outdated payment systems are not just financial, they are also reputational. Friction at the gate frustrates passengers, while delayed or manual reconciliation burdens airline staff. Outdated systems require manual assignment of payments into airlines’ revenue accounting systems, which adds overhead and increases the risk of errors.

Bridging the gap with integrated solutions

Integrated payment platforms like Airport Pay address these airport payment gaps by enabling real-time, flexible payments at check-in desks, boarding gates, and lounges — including through SMS or QR code if staff are mobile. The system fully integrates with the airline’s Departure Control System, automates reconciliation, and supports EMV cards, mobile wallets, and tokenised payments.

By removing friction at the passenger level in this way, airlines don’t just recover lost revenue, they also reinforce brand trust. A one-time cost of upgrading payment systems and terminals becomes a long-term investment yielding higher conversion, lower operational strain, and a better customer experience.

Download our full 'Retailing ready: towards traveler-centric airport payments' report to discover how airlines are rethinking payments at every touchpoint.