Amadeus to launch a wholly owned payments business in 2023

Amadeus plans to launch a new payments-focused business next year, with a virtual prepaid card as its first offering, the company announced.

The new business, Outpayce, will be wholly owned by Amadeus and will build on the company’s current line of business by offering its own regulated services. Amadeus has applied for and is awaiting approval of an electronic money license from the Bank of Spain, which allows it to offer payment services such as accepting and transferring funds and issuing debit cards in the European Economic Area. Amadeus expects approval to come early next year, with Outpayce launching on January 1, said Amadeus executive vice president of payments David Doctor, who will become Outpayce’s chief executive.

The first such service, which Doctor says could launch in the third quarter of 2023, will be a virtual prepaid card. In one use case, the virtual card could be generated when travelers book on Cytric, and travelers could use it throughout their trip with limits and restrictions set by the company on what and how much can be used. said the doctor. The cards could also be issued in the B2B Wallet product, which agencies use to pay for travel services, he said.

Amadeus and Outpayce will look to “close the gaps and remove friction from the whole process” with integrations as the product rolls out, particularly in use with hotels, he said.

In addition to its own offerings, Outpayce will work to develop an “integrated payment ecosystem” through which travel companies can connect to a variety of fintech providers through open APIs. It plans a “significant” investment in that suite of APIs, Doctor said, and will build on its current platform that already provides services from a number of companies, including Citi, Mastercard and PayPal.

In addition, Outpayce expects to hire more payment experts and technology engineers in the coming years, along with Amadeus employees and assets to be transferred to the new company, to support product development and business expansion, according to Amadeus. Doctor said growth through acquisitions is not out of the question, although Amadeus will consider them not just to add customers but to “create additional value”.

Outpayce will also “evaluate opportunities” to expand into additional geographies beyond the European Economic Area, Doctor said.

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