Shelby Financial’s escrow solution will mitigate financial risk and secure airline ticket payments for American carriers that plug into Paysafe
Paysafe, a leading specialized payments platform, announced a new partnership with Shelby Financial Corporation, the Pennsylvania-based provider of escrow solutions for the travel and aviation industry, to further strengthen its ‘safeguarding’ acquiring solution for U.S. airline ticket payments.
Against the backdrop of the COVID-19 pandemic’s destabilizing impact on the travel industry, Paysafe in July rolled out its safeguarding trust model for airline tickets payments, innovating on the traditional approach of tying up airlines’ liquidity with their banks to cover the high risk of these transactions. Already adopted by various European carriers, Paysafe launched the solution in the U.S. last month through a partnership with ARC, the Virginia-based provider of settlement services for airline transactions initiated through travel agencies in the U.S. and global data solutions.
Paysafe’s new partnership with Shelby Financial, whose escrow services are compliant with U.S. Department of Transportation requirements, consolidates the safeguarding model’s availability for American airlines. Now, when a U.S. airline partner of ARC or standalone carrier integrates with Paysafe’s safeguarding model, Shelby Financial will safeguard travelers’ ticket payments in a trust until pre-agreed terms are met and funds are then released in full to the airline.
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Shelby Financial will also leverage its customized technology and experienced staff to oversee data validation, including detailed flight information, resulting in a simplified and cost-effective solution that removes the significant capital investment that airline partners and travel agencies typically associate with cash collateral.
Shelby Financial’s risk mitigation expertise will complement Paysafe’s ability to allow airlines to offer travelers an extended choice of payment methods for direct sales. These include online credit or debit card payments, Paysafe’s eCash solution, and more than 100 other alternative payment methods.
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Paulette Rowe, CEO of the Integrated and Ecommerce Division (IES) at Paysafe, said: “The partnership with Shelby Financial further solidifies our commitment to driving payments innovation in the U.S. airline space by limiting financial risk for both passengers and merchants. The launch of our safeguarding solution has already played a role in supporting European airlines during the COVID-19 pandemic and we anticipate our new focus on the U.S. will help the industry stabilize and return to growth.”
Michael Glynn, Founder and VP of Operations at Shelby Financial, commented: “This is a crucial period for the resurgence of the U.S. airline industry and an important part of ensuring success is mitigating risk and promoting confidence in industry payment processes. Partnering with Paysafe and having our escrow solution integrated as part of a comprehensive safeguarding model is very exciting and reflects our own dedication to building customer trust.”
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