Contactless transit-based payment systems are taking to the air. Delta is working with Elavon to use its tap to pay technology for all domestic flights, allowing Delta travelers who have an iPhone device, to buy drinks using credit and debit cards, Apple Pay, and other digital wallets.
The transition is made easier by the fact that Delta flight attendants already carry airline-issued iPhones for tasks like checking seat assignments and providing upgrades. This move will obviate the need for them to carry a separate card reader. Delta has had a card-only payments policy for North American flights since 2009.
A critical step in this development occurred when Apple unlocked the iPhone’s near-field communication chip in 2022.
“That opened the door for developers to build apps that turn any iPhone into a payment terminal,” said Don Apgar, Director of the Merchants Payments Practice at Javelin Strategy & Research. “Early buzz about this included speculation that Apple was getting into payments or that they were positioning the iPhone to compete in the SMB POS space. Less obvious at that time were enterprise applications like this that expand the functionality of existing devices and reduce the total devices in use in the field.
“Beyond the operational efficiencies that this provides for Delta, it should have a significant positive impact on the in-flight payment experience for passengers,” he said. “Contactless payment capabilities extend into wearables, so passengers can tap their watch, ring, or other device to purchase that snack instead of having to fish for their wallet or purse to retrieve their payment card.”
Elavon’s Latest Transit Gambit
Elavon continues to stake its claim as a leader in transportation payment systems. The U.S. Bank subsidiary has partnered with 90 airlines, delivering ticketing payment solutions for customers worldwide. It launched its contactless Mass Transit Platform in September 2022, as travelers began to expect contactless payments as an option following the pandemic.
In recent weeks, Elavon announced that the Southeastern Pennsylvania Transportation Authority, which serves the greater Philadelphia area, would be accepting contactless payments. Elavon’s Mass Transit Platform now provides contactless payment services to transit agencies in Italy; Monterey, CA; and Myrtle Beach, SC.
This trend supports the increasing adoption of tap to pay technology across various retail and transit sectors.
“Javelin’s annual North American Payment Insights research shows that 64% of consumers have contactless capabilities on one or more of their credit or debit cards, and that 59% said that they prefer to tap their card at the payment terminal vs. inserting the chip or swiping,” said Apgar. “Data from Mastercard says that a third of all retail transactions are tap-to-pay, and Visa’s data shows that 51% of America adults are using at least one form of contactless payment.”