Travel technology company Amadeus plans to launch a new payments-focused business, with a prepaid virtual card to be its first offering.
The Madrid-based company plans to launch Outpayce as a wholly-owned subsidiary to achieve its goal of offering “frictionless travel payments” to customers.
Amadeus has applied for and is awaiting approval for an eMoney license from the Bank of Spain, which will allow it to offer payment services, such as accepting and transferring funds and issuing debit cards in the European Economic Area (EEA). Approval is expected to be granted early next year.
David Doctor, currently Executive Vice President of Payments at Amadeus, will become CEO of Outpayce when it launches on January 1, 2023.
Outpayce’s first service will be a prepaid virtual card that could launch in the third quarter of next year.
The doctor said this virtual card could be generated when travelers book on Amadeus’ Cytric platform. Travelers could use it throughout the trip, with their organization setting limits and restrictions on what and to what extent it can be used.
He added that the cards could also be issued in the B2B Wallet product, which agencies use to pay for travel services.
Amadeus and Outpayce will seek to “fill in the gaps and remove the friction from the whole process”, emphasized Doctor.
In addition to its own offerings, Outpayce will work to develop an “integrated payment ecosystem” through which travel agencies will be able to connect to a variety of fintech providers through open APIs.
It plans “significant” investment in this API suite, Doctor said, and will build on its current platform which already provides services from several companies, including Citi, Mastercard and PayPal.
Outpayce plans to hire more payment experts and technology engineers over the next few years – alongside Amadeus employees and assets that will transfer to the new company – to support product development and business expansion. It will also “evaluate opportunities” for expansion into additional geographies beyond the EEA.
“With our eMoney license application combined with our investment in talent and technology, we are well positioned to improve our current service to customers as well as expand the range of services, geographies and customers we serve,” added Doctor.