Cathay Pacific has expanded its partnership with payments company Adyen, extending Adyen's direct acquiring services to more of the airline's international markets.
The expanded arrangement covers Hong Kong, Australia, New Zealand, the United States, Japan and India. The partnership began in 2014 and has grown from an initial payment relationship into a broader part of Cathay Pacific's commerce operations.
Direct acquiring allows a merchant to process card payments through a local acquiring setup in a given market, rather than routing transactions through a third party or offshore arrangement. Airlines use these structures to improve payment acceptance, lower transaction costs, and reduce friction for customers booking across multiple jurisdictions.
For Cathay Pacific, the latest rollout in India has led to a measurable change in transaction approval. Since the implementation there, the airline has recorded a 10% increase in authorisation rates.
The announcement underscores how airlines are paying closer attention to the economics of digital sales as more bookings move online and customers use a wider range of cards and payment methods across regions. Payment approval rates can directly affect revenue, particularly in markets where cross-border transactions face higher decline rates.
Adyen has been building its position with travel and aviation clients by offering a single integration for payments across multiple markets. For international airlines, a consolidated payments setup can reduce operational complexity while still allowing local processing in key countries.
The payment arrangement is intended to support customer transactions in Cathay Pacific's target markets. The airline is Hong Kong's main carrier and a founding member of the oneworld alliance.
Its wider group also includes Cathay Cargo, low-cost carrier HK Express and Cathay Lifestyle. Cathay is part of the Swire Group and is listed in Hong Kong.
India focus
India stands out in the latest phase of the partnership as the most recent market added to Adyen's direct acquiring footprint for the airline. The reported rise in authorisation rates suggests local payment processing can affect booking conversion in markets with distinct banking and card network conditions.
Airlines often face payment challenges in India because of domestic processing rules, varied issuer behaviour and the mix of local and international cards used by travellers. A higher authorisation rate means a larger share of attempted transactions is approved, which can translate into more completed bookings without increasing traffic.
The broader set of markets in the partnership also reflects Cathay Pacific's exposure to long-haul and regional demand flows. Hong Kong, Australia, New Zealand, the United States and Japan are all significant markets for the carrier's passenger network, making payment performance in those countries commercially relevant.
Company views
One focus for Cathay Pacific is the customer experience during booking and payment.
"At Cathay Pacific, we believe that a seamless and trusted shopping experience is essential to elevating ourselves to become the most loved service brand of our customers," said Kinto Chan, General Manager, Sales and Distribution, Cathay Pacific. "By leveraging Adyen's single integration and trusted, extensive global acquiring network, we can ensure our customers transact securely while allowing us to expand into our target markets with ease."
Adyen described the relationship as a way to manage the complexity of selling across multiple countries.
"Our partnership with Cathay Pacific is centred on turning global payment complexity into a competitive advantage," said Warren Hayashi, President, Asia-Pacific, Adyen. "By optimising authorisation rates across diverse geographies, we ensure more bookings take flight, helping Cathay achieve commercial growth on a global stage."
The travel sector has become an important test case for payment companies because it combines high transaction values, cross-border demand and a large volume of online bookings. In that environment, small changes in payment acceptance can have a visible effect on sales.
For Cathay Pacific, the expansion adds more local acquiring coverage in markets central to its route network. In India, the change has already delivered a 10% increase in authorisation rates.