Beyond Offers and Orders: Why Payments Are Critical to NDC Success
- Aftab Khan
- May 22
- 3 min read
As airlines embrace International Air Transport Association's (IATA) New Distribution Capability (NDC) to take back control of their retailing strategies, much of the focus has been on dynamic offer creation, personalised content, and direct distribution. But there’s one piece of the retailing puzzle that’s too often left as an afterthought: payments.
In the world of NDC, payments aren’t just the last step—they’re a strategic enabler. To fully realise the promise of NDC and modern airline retailing, payments must evolve from static backend functions into dynamic, customer-facing capabilities that drive conversion, margin, and flexibility.
Payments: From Backend to Business Driver
Traditional airline payment processes were built around rigid flows—ticketing via Global Distribution System (GDS), settlement via Billing & Settlement Plan (BSP), and fixed payment methods. NDC flips this model. It introduces real-time offer and order management, opens up new distribution partners, and shifts the airline into a true merchant role.
This demands a more agile and intelligent payment architecture that aligns with the NDC offer-order lifecycle.
1. Payments as Part of the Offer
With NDC, the “offer” includes not just price and content, but also:
Available payment methods based on location, device, or customer type
Currency and FX rules
Eligibility for loyalty redemption, vouchers, or mixed payments
This allows airlines to dynamically present localised and optimised payment options, improving conversion and aligning with traveller expectations.
2. Order-Centric Payments
In an NDC environment, the order is the source of truth, not the PNR or ticket. That means payments must be:
Initiated and linked directly to the order
Able to handle partial payments, re-shopping, and servicing
Flexible in capturing additional ancillaries post-purchase
This also introduces new complexities in reconciliation and reporting, which legacy systems may not support without customisation.
3. Supporting Direct and Partner Channels
Airlines using NDC often connect directly to Online Travel Agencies (OTAs), aggregators, and corporate platforms. Each of these may require different payment and settlement arrangements:
Merchant of record flexibility
Multi-party settlement logic
Real-time validation and tokenisation
Support for airline-led and partner-led payment flows
Payment infrastructure must be designed to support these variables without increasing risk or friction.
4. Fraud, Security, and Compliance in a Multi-Channel World
As NDC expands distribution touchpoints, the risk of fraud grows. Payment strategies need to include:
Dynamic fraud scoring and machine learning
Tokenisation and secure vaulting
PCI DSS compliance across all touchpoints
Channel-specific risk rules
Security must be embedded, not bolted on—especially in NDC, where new channels bypass traditional controls.
5. Payments as a Revenue Lever
Payments are not just a cost to manage—they're a revenue tool. With the right strategy, airlines can:
Steer toward low-cost payment methods
Optimise authorisation rates via intelligent routing
Charge service fees transparently
Leverage real-time FX for margin improvement
These tactics can significantly improve profitability, especially on indirect sales channels where margins are already thin.
How Conexxia Enables Payment Success in NDC
At Conexxia, we understand that NDC transformation is incomplete without payment transformation:
Integrated payment orchestration with support for global Payment System Providers (PSP)
Real-time payment linking to NDC orders and servicing flows
Support for loyalty, vouchers, and split payments
Reconciliation and settlement reporting across channels
Dynamic risk and fraud protection tools
We help airlines turn payments into a retailing strength, not a bottleneck.
Conclusion
NDC is about more than modern APIs—it’s about enabling a new way of selling. Selling requires frictionless, intelligent, and flexible payments. For airlines looking to lead in the era of offer—and order-based retailing, integrating payment strategy into your NDC roadmap is not optional—it’s essential.
Talk to Conexxia to learn how payments can become a competitive advantage in your NDC journey.
Aftab Khan
Sales Manager - Payment Consulting
On a mission to help change the world, one experience at a time
I collaborate with progressive businesses to deliver successful business outcomes in 4 key areas: Increasing Revenues, Improving Operational Efficiencies, Regulatory Compliance and Elevating Customer Experience, leading to sustainable business growth.
Connect with our team at Conexxia to fortify your payments landscape.
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