Airline Payments Latin America: How epag Cuts Costs & Fees
The airline industry in Latin America is massive, generating $40-70 billion in passenger revenue annually. However, despite this heavy traffic, its payments potential remains underutilized. The core problem lies with outdated models for airline payments in Latin America, which create significant “turbulence” in the form of high fees and operational drag. This article X-rays the challenges and presents a clear flight plan to profitability.
The “Turbulence” We Accept: High Fees and Changing Rails
Airlines have long relied on cards, but this loyalty comes at a high cost. In Latin America, carriers absorb around $1 billion every year in processing fees alone. This doesn’t even include the “wind shear” of chargebacks and FX fees that challenge margins.
But the payment runway itself is changing. In Brazil, Pix has officially surpassed cards in transaction volume. While only 6.5% of banked users have an international credit card, 94% have adopted Pix. The signal is clear: the region’s takeoff will be powered by new local rails.
A Clearer Flight Plan for Airline Payments in Latin America
While some carriers focus on new ancillary fees (“pay to recline”), the smarter ones are asking, “What if we reduce payment costs instead?”.
This is the key to a smoother climb. By shifting even a portion of sales from high-cost cards (at ~3% fees) to local Alternative Payment Methods (APMs) (at ~1.4-2%), airlines can cut costs and raise approval rates. This shift could save airlines across Latin America an estimated $540 million a year.
This is where epag provides the flight plan.
epag: Your Local Co-Pilot for Profitability
epag connects airlines directly to the local payment rails across the region—including Pix, SPEI, PSE, wallets, and more. We clear the runway of the “FODS” (Foreign Object Debris) that slow your operations: chargebacks, rolling reserves, and settlement delays.
As your local co-pilot, epag offers a clear approach to profitability:
- Near-zero chargebacks
- Access to over 140 alternative payment methods
- Reach to nearly half a million points of sale
Latin America is ready to soar. It’s time to unlock your full altitude with seamless payments. Book your success ticket to learn more about optimizing your payment strategy.
