Tackling the last mile in the jet marketplace payment ecosystem with Paynode
Since 2002 Avinode has been known as an industry disruptor, revolutionizing the way air charter flights were sourced and booked. Avinode was the first company to move business aviation online, with its goal to give business aviation the technology it needed. It succeeded.
Today, Avinode is the world’s largest private jet marketplace, connecting brokers, operators and other third parties involved in the value chain of private jet usage. Their online marketplace is the preeminent in the world, leading the global private charter sourcing market.
Part of their success is that they listen to their customers, and don’t accept the status quo. So when they decided to act on customer feedback telling them that they were struggling in the buying and selling flow in their payment process, it was no surprise that Avinode would provide an innovative technology solution to solve payment problems for their customers – one that would completely change the way the aviation industry paid each other.
This solution was Paynode, incorporating a payments workflow into the existing sourcing flow to simplify the payment process.
Avinode Group: reducing stress and maximizing profit for its customers
- Avinode is the world’s leading sourcing platform for air charter. The marketplace simplifies finding aircraft, booking trips and marketing aircraft globally.
- Schedaero makes flight operations smoother for charter operators, flight departments and private aircraft owners.
- Paynode adds the reassurance of sending and receiving hassle-free payments, fully integrated in the rest of the charter workflow.
Payments were a challenging aspect of business aviation, and a significant headache for Avinode’s marketplace customers because of the high values of air charter payments – which average £25,000. Planes would not take off without a completed payment in their charter bank accounts. This prevented many of Avinode’s customers from being able to offer last-minute flights.
Customers were having to use a patchwork payment approach that involved using credit cards (which were expensive), or bank transfers (which were slow). The ideal payment situation would be one where payments were instant and secure.
Avinode Group wanted to solve the slow, complicated and at times inaccurate way of making payments for their customers.
Their solution? To simplify customers’ payment process by incorporating a payments workflow into their existing sourcing flow. This was their Paynode platform. The ultimate goal was to change the entire way the industry pays each other – making it more transparent, faster and more cost-effective.
In 2020 Avinode sought out an experienced payments provider who could give them exactly what they needed to make Paynode more efficient and a success. This provider was Currencycloud.
“For us to be able to venture into payments and solve problems for our customers we needed to find a strong payment partner who could help us build the payment solution required.”
Creating Paynode: just what their customers wanted
With Currencycloud embedded in Paynode, operators can transact with each other in real time, which is critical in the private jet industry where time and trust is everything. Participants can make payments, transfer funds, and pay out in one integrated payment platform.
Says Brenton Melville, Senior Payments Specialist, Avinode Group, “Most charter operators don’t want to run a £50 000 flight on the promise that the funds will arrive next week. They need a guarantee that payments will arrive before the flight. Currencycloud has enabled us to build a solution that speeds up this process for our customers.”
Paynode: simplifying cross-border payments
By integrating Currencycloud into the Paynode payment platform, Avinode has addressed a core need for its marketplace customers, who can now transfer funds much faster than before. Operators can collect payments quickly, which is critically important in the case of last-minute flights. The individually named sub accounts for each of Avinode’s merchants allows them to send or receive international payments with ease. Paynode’s users can enjoy the wholesale FX rates Currencycloud provides at the point of making their payments, saving them money on each transfer made and giving them a more streamlined payment experience.
“Leveraging Currencycloud’s white label solution allowed us to go to market with a workable solution earlier than expected. Our next goal is to bring everything into our solution via Currencycloud’s API, which would give our customers an even more seamless experience.”
Paynode answers the specific needs of a niche industry and is used widely across the Avinode Group and marketplace.
Says Avinode’s Brenton Melville, ‘With the help of Currencycloud, we have been able to supply our customers with an instant payment solution within a network of vetted partners. This has increased the trust in working with those companies and is an added benefit when using Paynode. Of Avinode Group’s 1800 member companies, nearly 500 of them have now joined the network and are able to enjoy the reassurance of faster payments with other trusted companies.’
Avinode is using Currencycloud’s Transfers service which enables their merchants to pay each other instantly, even on weekends, when transfers via traditional banks are not possible.
The integration of Currencycloud lets Avinode give their customers an instant payment solution within a network of vetted partners via Paynode.
Paynode enables clients to send and receive payments via local payment methods from international clients and vendors, offering marketplace customers a full service experience.
Since using Currencycloud, Paynode’s volumes nearly doubled in 2022 and have increased by 20% in the first half of 2023. The number of payments processed has increased by 40% year-over-year.
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