How Open Banking is Lowering Transaction Fees for Budget Carriers

Low-cost carriers run on thin margins. Every percentage point spent on credit card processing fees eats directly into their profit. Open Banking is offering these carriers an escape hatch from high credit card interchange costs.

Account-to-Account (A2A) Payments

With Open Banking, passengers can authorize direct, bank-to-bank transfers to pay for their flights. This bypasses credit card networks (Visa/Mastercard) and their associated processing fees entirely.

For budget airlines, this reduces payment processing costs by up to 80% per transaction. A2A payments also eliminate chargeback risk, as bank-to-bank transfers are push payments initiated and authenticated directly by the customer through their bank app.