Singapore, 16 May: eNett International, a leading provider of dedicated B2B payment solutions, today called on travel companies to reassess their ‘true’ cost of payments. Many businesses continue to calculate the cost of payments based on direct costs such as fees and surcharges. They are unaware that indirect or ‘hidden’ costs also need to be factored in to get a true cost of payments figure – and travel companies are paying more than they need to as a result.
The call comes as analysis showed over-reliance on traditional payment methods could mean travel companies are spending thousands of dollars each month on unnecessary manual reconciliation1. And agencies could also be paying up to 3%2 more on their cross-border transactions, through hidden charges and mark-ups from their providers. Calculating the true cost of payments requires travel companies to include the risk of fraud and supplier default, and FX risks and charges representing indirect costs to the business. Added to this is paying on credit and bonding, which become opportunity costs when compared to alternatives.
For example, for an agency paying suppliers ~$10 million per annum using traditional payment methods, eNett calculates the costs to be in excess of $300k3 and believes it can recover at least two thirds of this in pure cost savings alone.
In order to give travel companies greater clarity on what makes up the true cost of payments, eNett has brought together a dedicated cost of payments microsite
. Our assessment of the key individual elements of the total cost of payments is outlined in detail, with an eBook, factsheets, opinion pieces and other content to deliver expert insights. Visitors are also given access to an easy-to-use calculator tool to find out what their true cost of payments are – and how much they could be saving by demanding more from their payments strategy.
eNett CEO and Managing Director, Anthony Hynes, said, “Having facilitated tens of billions of dollars in payments across the travel industry, we thought it was about time the true costs of payments were brought to light. Too many travel companies are just accepting costs on face value. Taking the time to understand and perform a deeper analysis of costs, and challenging vendors to provide greater payments clarity on their charges, will provide them with a true view on the real cost of payments.”
The dedicated cost of payments microsite can be accessed through the link here
1. eNett analysis of Phocuswright Payments Unsettled Report 2013, based on an average consultant salary of US$15 per hour.
2. eNett analysis of bank fees and charges.
3. Calculation by eNett’s Cost of Payments Calculator tool – terms & conditions apply. Calculation based on traditional agency with US$10M payables, 20% of which is subject to FX, making payments today to a range of supplier types by a combination of agency debit and credit cards, customer card pass-through, bank transfers and cheques.
About eNett International
eNett International simplifies the complexities of payments by connecting travel industry specialism with payments expertise.
We pioneer innovative B2B payment solutions that reduce risk and facilitate even more travel content, at a lower cost. Easily integrated into existing travel booking workflows, our payment solutions deliver financial, data and efficiency rewards for travel agents and industry suppliers.
Our secure Virtual Account Numbers (VANs) enable travel agencies of all sizes to automatically generate a unique MasterCard number and pay their suppliers from directly within their booking flow. And our exclusive, long-term partnership with MasterCard provides access to the world’s fastest payments processing network and 35.9 million payment locations worldwide, wherever a supplier accepts MasterCard online.
We are majority owned by Travelport, which is listed on the New York Stock Exchange, and our VANs are seamlessly integrated into its Travel Commerce Platform.
Further strengthened by our global banking services partner and shareholder Optal, eNett is building a reputation for trusted and practical B2B payment solutions for the travel industry and beyond.