Telecom
SeerBit X Sabre: Addressing Payment Challenges in the Airline Industry
Airlines around the world strive to ensure a seamless and convenient travel experience for millions of passengers. However, behind the scenes, these businesses grapple with issues, such as complex payment processes which impact revenue, operational efficiency and customer satisfaction.
The pressure to meet the ever-rising expectations of customers, as well as other issues, such as high transaction fees, threat of fraud, multi-currency complexities and reconciliation challenges all add up to form giant pain points that airlines have to constantly battle with. These pain points have a detrimental effect on the growth projections for the aviation industry in Africa.
A recent report suggests that the continent’s flights market is expected to generate $14.50 billion in revenue by 2029, with the number of users expected to hit 108.60 million. However, prevailing payment obstacles, aligned with infrastructure deficiencies, high costs and taxation require innovative solutions to transform them into growth opportunities for the aviation industry.
The Complex Payment Landscape for Airlines
As airlines continue to expand globally, payment challenges become increasingly multifaceted, impacting profitability and operational efficiency. These challenges cut across payment-related, operational and regulatory issues.
1. High Transaction Costs
Airlines face a daunting task of managing costs because of the additional substantial expense that high transaction fees and multi-currency handling add. According to a report from the International Air Transport Association (IATA), processing fees alone can cost airlines billions annually, cutting directly into profits. Fluctuating currency values and international transaction fees make up a significant part of the costs incurred by global airlines and which impact their bottom line.
2. Revenue Leakage and Payment Fraud
Payment fraud has become a serious risk for airlines worldwide, especially with the rise of digital payments. According to IATA, the aviation industry loses up to 1.2% of its annual revenue to fraud. Fraudulent transactions and other associated risks threaten airline revenue streams, making it essential to have a secure payment infrastructure. For example, without adequate safeguards, airlines can lose significant amounts to credit card fraud, chargebacks, and unauthorised transactions, leading to revenue leakage.
3. Reconciliation Headaches
For global airlines, payment reconciliation across various sales channels, regions and currencies is both error-prone and time-consuming. Every day, airlines process thousands of transactions from sources including online bookings, travel agents and in-flight sales. The large scale volume of these transactions makes it difficult to align the records accurately, leading to discrepancies that impact financial reporting and decision-making.
4. Customer Experience Expectations
Travellers in today’s world expect fast, seamless payment experiences that fit their on-the-move lifestyles. Long queues, payment processing delays or currency incompatibility can sour the customer journey, leading to customer dissatisfaction and decreased loyalty. According to a recent report, over 70% of passengers say they are unlikely to return to an airline if they encounter a negative payment experience.
5. Regulatory Compliance Across Multiple Jurisdictions
Operating globally means airlines must navigate complex and varying regulatory landscapes. Each country enforces its own rules regarding data protection, taxation and financial reporting, creating significant operational challenges. Failure to meet these regulations can lead to hefty fines, operational delays and reputational damage. Managing compliance in every market requires time and resources that detract from an airline’s primary focus on delivering excellent service.
SeerBit & Sabre Partnership: A Strategic Solution for Airlines
Through a recent partnership with Sabre, SeerBit is helping airlines navigate the complexities of the payment ecosystem by addressing key pain points and enhancing operational efficiency.
Here’s how SeerBit and Sabre’s unified solution addresses business pain points and challenges for airlines:
1. Streamlined Payment Processes
With SeerBit, airlines using Sabre can now enjoy a streamlined payment process that optimises the end-to-end transaction cycle, from booking to post-flight purchases. This integration provides real-time payment processing, which reduces the need for manual intervention, and offers airlines an efficient, cost-effective approach to managing global transactions.
2. Multi-Currency and Global Reach Capabilities
SeerBit offers payment solutions that empower airlines on Sabre to receive and manage payments across different regions and multiple currencies seamlessly. SeerBit’s robust support for international currencies and compliance with local regulations ensures that airlines can operate confidently in new markets, meeting regional compliance, while offering a seamless experience to travellers worldwide.
Irrespective of where an airline operates, SeerBit’s multi-currency solutions ensure reduced fees, prevent currency volatility losses and ensure compliance across borders.
3. Advanced Security and Fraud Detection
The strategic partnership between SeerBit and Sabre prioritises security, with fraud detection and prevention features tailored to the unique needs of airlines. Advanced data encryption features safeguard payment channels, drastically reducing the risk of fraud. Airlines can rely on SeerBit to provide a trusted environment for their customers, minimising exposure to fraud and enhancing overall customer trust.
4. Data-Driven Insights and Reporting
Data is invaluable for airlines aiming to optimise their operations. Through SeerBit’s integration with Sabre, airlines can enjoy access to real-time insights that support financial reconciliation and accurate reporting. This solution provides a consolidated view of airline payments, allowing finance teams to make data-backed decisions and identify opportunities to reduce costs or improve efficiency. Further, airlines are in a position to understand customer payment behaviours better, enabling them to tailor their offerings. By analysing payment data, airlines can refine services based on passenger preferences, such as prioritising mobile payment options for younger customers who value speed and simplicity
Key Benefits of SeerBit & Sabre Integration for Airlines
By addressing core payment pain points in the aviation industry, SeerBit and Sabre help airlines achieve operational efficiency, cost savings and enhanced customer loyalty.
1. Increased Revenue and Lowered Costs
By reducing multi-currency fees and eliminating revenue leakage, airlines can experience improved profitability. SeerBit’s solutions help streamline transaction costs, optimise revenue and offer airlines a competitive edge in their pricing strategies.
2. Enhanced Customer Experience
Customers who enjoy seamless and secure payment options are more likely to develop loyalty to an airline. Sabre’s emphasis on great customer experience aligns with SeerBit’s mission to simplify payment interactions, allowing airlines to offer a payment journey that matches their travel excellence goals. With faster, flexible payment options, airlines can boost customer satisfaction and retention rates.
According to IATA’s Global Passenger Survey, around 38% of passengers are dissatisfied with limited payment flexibility, impacting their willingness to book services. Airlines that expanded their payment options to include localised methods, e.g., mobile payments, reported higher customer satisfaction and retention by catering to diverse payment preferences across age groups and regions.
3. Optimised Operational Efficiency
Automation of payment processes and reconciliation reduces manual errors and enhances operational efficiency. SeerBit’s robust reconciliation tools help airlines consolidate transactions from various channels, simplifying financial management and boosting operational productivity.
4. Scalability and Future-Readiness
SeerBit and Sabre’s partnership provides airlines with scalable solutions designed to meet future industry demands. As travel returns to a high post-pandemic, airlines can rely on flexible solutions offered by this strategic partnership to adapt to changing market trends and customer needs, ensuring long-term success.
A Future of Seamless, Secure Airline Payments
Africa is emerging as the next major frontier for air travel. A recent study on emerging markets projects that by 2030, the African aviation industry will experience robust growth, with a compound annual growth rate of 5% to 6% in passenger traffic. This expansion is fueled by urbanisation, a growing middle class and enhanced connectivity. Alongside this growth, African airlines are expected to double their fleet size, contributing over $100 billion to the continent’s GDP and supporting more than 6 million jobs.
To meet these ambitious targets and navigate a complex global market, airlines need payment solutions that are secure, cost-effective, and aligned with evolving customer expectations. SeerBit’s partnership with Sabre Corporation delivers a powerful, integrated payment platform designed to reduce transaction costs, fortify security and enhance the customer experience.
This landmark collaboration empowers decision-makers and stakeholders in African aviation to modernise payment operations, boost efficiency, and unlock new revenue streams. Through this key integration, businesses across the aviation value chain are well-positioned to thrive in an increasingly competitive landscape and set new benchmarks for operational excellence.
Learn more on how to unlock the key benefits of the SeerBit X Sabre partnership for airlines here.
MTN Nigeria Communications Plc and Airtel Africa Plc have reduced investments in network infrastructure to focus on minimising foreign exchange (FX) exposure and managing rising operational costs.
According to businessday.ng, this was detailed in their financial statements for the nine months ending September 2024.
Their strategy aligns with earlier forecasts of decreased capital expenditure (capex) due to foreign exchange (FX)-induced losses in 2023 and 2024.
In recent weeks, Nigeria’s network quality has declined, a situation that Gbenga Adebayo, chairman of the Association of Licensed Telcom Operators of Nigeria (ALTON), attributed to reduced investments in the sector.
GSMA, the global telecom body, has warned that lower capex could lead to a shrinking telecom sector, resulting in poorer service quality and slower coverage expansion.
“The overall financial performance of the industry in recent years has not been sufficient to support the capital-intensive nature of the business,” it said.
Karl Toriola, chief executive officer of MTN Nigeria, recently noted that investments would not flow into a sector that cannot promise returns. “We are in a big crisis,” he said.
MTNN’s core capex spending fell by 27.79 percent to N217.64 billion from N301.38 billion year-on-year (y-o-y).
“Excluding leases, our core capex declined by 27.8 percent, resulting in a capex intensity of 9.8 percent on this basis. The optimisation of core capex enabled us to accelerate the reduction of forex exposure arising from our LC-backed obligations and its impact on the business,” MTNN said.
Airtel Nigeria’s capex fell 36.59 percent to $149 million in the first nine months of 2024 from $235 million in the corresponding period of 2023.
“Operating free cash flow was $163 million, up by 73.7 percent in constant currency, largely due to the constant currency EBITDA growth and lower capex while in reported currency,” Airtel said.
This slowdown coincides with reduced revenue earnings for Airtel and reported losses for MTNN. A Central Bank of Nigeria (CBN) unification of the foreign exchange market in June 2023 triggered a sharp devaluation of the naira, which plummeted from N471/$ before the move to N1043.09/$ by December 28, 2023, and N1676.90/$ by November 4, 2024.
Airtel Nigeria’s revenue fell 46.9 percent to $755 million, while MTNN’s losses increased from N14.99 billion to N514.93 billion, despite service revenue growing by 33.7 percent to N2.37 trillion.
Over the last two years, MTN has spent N1.08 trillion on capex, with Airtel Nigeria spending $545 million in the same period. Both declared FX losses of $1.56 billion in 2023.
Beyond FX losses, surging energy costs have also strained the operating budgets of telcos.
“Average diesel prices in Nigeria increased by approximately 90 percent compared to the prior period,” Airtel stated.
MTNN’s operating expense increased by 95.87 percent to N1.13 trillion from N575.46 billion.
The highly anticipated Africa Tech Alliance Forum [AfriTECH 4.0: https://africatechallianceforum.africa/] is scheduled to hold today Thursday, November 07, 2024 at Oriental Hotel, Lekki Road, Lagos-Nigeria.
The forum will bring together industry leaders, policymakers, innovators, and entrepreneurs to explore the theme “Leapfrogging Digital Transformation for Future of Africa’s Economy.”
AfriTECH 4.0 is poised to address critical conversations around the digital evolution of Africa, with a focus on key topics such as emerging technologies, sustainability, policy frameworks, and innovation in the tech ecosystem.
The forum will highlight the importance of building sustainable and inclusive digital infrastructures that can drive economic growth and social development across the continent.
Event Highlights Include: Keynote Presentations, Panel discussions, Networking Opportunities.
Also, the prestigious Africa Tech Alliance Excellence (ATAEx) Awards will recognize individuals, businesses and institutions leading digital transformation in Africa.
Special Guests:
Dr. Aminu Maida, a distinguished leader in telecommunications and digital transformation; Kashifu Inuwa Abdullahi, CCIE, a transformative leader in Nigeria’s technology landscape, currently serving as the Director General of the National Information Technology Development Agency (NITDA); Professor Ibrahim Adepoju Adeyanju, the CEO of Galaxy Backbone, a key government-owned technology and digital infrastructure company; Biram Fall, the Regional Managing Director, QNET, a leading e-commerce-based direct selling company; Ebehijie Momoh, the CEO of AfrigoPay Financial Services Limited, where she leads the company’s mission to provide innovative payment solutions across Africa.
Others are; Dr. Muhammed Sirajo Aliyu, President of the Nigeria Computer Society (NCS); Dr. Temitope Alakija, Senior Lecturer in the Department of Statistics at Yaba College of Technology [Yabatech] Lagos; Adesola Akinsanya – President, Nigeria Internet Registration Association (NiRA); Engr. Gbenga Adebayo, Chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON); Tony Izuagbe Emoekpere – President, Association of Telecommunications Companies of Nigeria (ATCON).
Also speaking are; Engineer Ikechukwu Nnamani – CEO, Digital Realty (Nigeria); Dr. Obadare Peter Adewale, Chief Visionary Officer, Digital Encode Limited; Mr. Emmanuel Amos, Founder – Programos Foundation/InnovationBed Africa; Chukwuebuka Ume-Ezeoke, Chief Technology Officer at CED Technologies; Dr. Oluseyi Akindeinde, Founder, Hyperspace Technologies; Happiness Obioha, Managing Director, Tecom Concepts Limited; Chukwuemeka Mbaebie, Convener, Lagos Blockchain Week; Akeem Ajisafe, Managing Director, Transblue Limited; Chika Nwosu, Managing Director, PalmPay; Jude Ozinegbe, Founder/Convener at Cyberchain; Mohammed Rudman, CEO, Internet Exchange Point of Nigeria [IXPN]; Dr. Ayotunde Coker, CEO Open Access Data Centres (OADC); Kehinde Ogundare, country manager, ZOHO [Nigeria]; Ayodeji Ogunmola, Director, Products Management at Northsnow Ltd; Oluwakayode Durodola, founder, Otuntech Limited; Lovelyn Okafor, Country Head, Nigeria at Newmark; Olaniyi Ibraheem, Business Development Manager (Africa) at UBankConnect; Adedamola Bowale, Co-founder & Technical Lead at Avancee Pinnacle, and Moniade Adeniyi, Product Innovation & Business Growth Strategist, Northsnow Ltd.
Meanwhile, innovationbed Africa is set to host “Startup Showcase” at AfriTECH, a session dedicated to startup finalists for this year’s United Nations World Summit Awards. Discussants include – David-Bobola Ojoawo, the Producer for Compas.AI; Stephen Adeyemo of Expertplug; Siro Collins, CEO of Advanced Engineering Center (AEC), WSA Winner 2023; Elijah Moses, Producer for VerionX; Rasheed Aliu Producer for LOOPBOX; Musami Umar Musam, founder of RollMal; David Ezeonyekwere, the founder of CheapMarketDeal, and Sule Wisdom David, the founder of CyclexAfrica.
QNET is the gold sponsor of AfriTECH 40. Silver Sponsors – Galaxy Backbone, Digital Realty, Digital Encode Ltd. Bronze Sponsors – CED Technologies, AfriGoPay, Tecom, Northsnow UK, Hyperspace Technologies, Palmpay, OADC.
Ecosystem Partners: NCC, NITDA,, InnovationBed Africa, ALTON, ATCON, NCS, IXPN, NiRA, Lagos Blockchain Week, Newmark Group, all are supporting AfriTECH 4.0.
Media Partners include; Techeconomy, NigeriaCommunicationsWeek, ITPulse, Ravenews, TechTrends.Africa, TechBuild.Africa, GrassRoots, DigiVation Network, TechLifewithUgo, BusinessMetrics, BusinessRemarks, SwiftReporters, TechTV, Africa Hyperscalers Media, CyberEra, ITRealms, DigitalTimes, TechnologyMirror, TechandBizNews, ITNewsNigeria.
“AfriTECH 4.0 will also feature interactive panel discussions, workshops, and exhibitions that will explore other critical topics such as artificial intelligence (AI), blockchain, fintech, smart cities, and sustainable innovation”, said Chike Onwuegbuchi, co-convener of AfriTECH. “We are grateful to the sponsors and partners”.
“Attendees will have the opportunity to engage directly with the speakers, as well as network with other industry leaders, innovators, and investors”, he added.
Participation
Online participants can join using the Zoom link here: https://shorturl.at/ETAPq.
Funke Opeke, founder/CEO, MainOne, Nigerian internet connectivity giant, has stepped down from her role after 14 years – two years after Equinix, digital infrastructure business, bought her company, albeit news reports indicate that the completion of MainOne’s full integration with Equinix, was more recent, taking place this month.
Wole Abu
MainOne will retain its brand as MainOne, Solutions by Equinix, while its data centre division, MDXi, will operate under the Equinix name.
The development comes two weeks after the firm finalised its post-acquisition integration with Equinix Inc., a digital infrastructure company.
Recall that in 2022, Equinix Inc. announced that it had completed a deal to acquire MainOne, a West African data centre and connectivity solutions provider, for $320 million.
Speaking on her resignation in a statement on Tuesday, Equinix said Opeke will be replaced by Wole Abu as the new managing director in West Africa and lead the expansion of digital infrastructure in the region.
According to the organisation, Abu will oversee the Equinix business in Nigeria, Ghana, and Cote d’Ivoire; while Opeke will remain a strategic advisor for the company in the West African region through March 2026.
“Wole is a seasoned professional with over 20 years’ experience in the Nigerian Telecoms Industry,” the statement reads.
“He joins Equinix from Liquid Intelligent Technologies where he held the position of CEO for Nigeria and Africa Data Centre (ADC).
“As well as driving business success, Wole is passionate about driving societal and social change through technology and is focused on driving a successful strategy for connectivity and digital access in West Africa.
“Wole will also lead Equinix’s key local engagements to make a meaningful impact to society through the support of initiatives focused on education, sustainability, and the betterment of society as well as driving the vital environmental and community initiatives so crucial to the sustainable goals and vision of Equinix.”
Speaking on the appointment, Judith Gardiner, vice-president for growth and emerging markets at Equinix, said Abu’s expertise will help the company expand its reach.
“We are delighted to have Wole join Equinix as the leader driving our operations in West Africa,” Gardiner said.
“With his expertise, we will support local businesses and multinational companies in expanding into Africa and beyond through Equinix.
“This marks a significant milestone for Equinix as we continue to develop our presence in Africa, establishing crucial strategic data hubs, accelerating digital technology development, supporting our customers, and contributing to the continent’s immense growth potential through robust digital infrastructure.”
On his part, Abu expressed eagerness to contribute to Equinix’s transformative work and help create a more connected, accessible digital landscape throughout Africa.
“I’m excited to be joining Equinix, as we share a common vision for expanding digital infrastructure across Africa,” he said.
“This mission is crucial for bringing life-enhancing services to the region and bridging the digital divide. By empowering both enterprises and individuals, we’re enabling broader participation in the global digital economy.”
Equinix also said Wole’s appointment as managing director for West African business follows shortly after the opening of its newest data center in Johannesburg.
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