Specialized payments platform Paysafe Limited (NYSE:PSFE) today announced a new partnership with Shelby Financial Corporation, a provider of escrow solutions for the travel and aviation industry, to further strengthen its ‘safeguarding’ acquiring solution for U.S. airline ticket payments.
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.
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.