As global travel demand goes from strength to strength, the Middle East is emerging as one of the most dynamic growth regions for online travel. Yet for many online travel agents (OTAs), airlines and hospitality groups, the complexity of payments continues to be a barrier, from low virtual card acceptance rates with regional and international airlines, to high processing costs that eat into margins. For operators selling the Middle East, where traveller volumes are rising fast and supplier networks are expanding, getting payments right can make the difference between scaling smoothly and hitting roadblocks.
This was the challenge faced by Sembo, a fast-growing OTA with ambitious expansion plans, before partnering with Outpayce from Amadeus. Over the past three years, the adoption of Outpayce’s B2B Wallet with intelligent payment orchestration has transformed its payment strategy.
Acceptance rates for virtual cards increased by 30%, airline partnerships grew from 120 to over 150, and the flexibility to use 14 different cards now allows Sembo to optimise each transaction, whether the priority is cash flow, security, or rebate maximisation. The results highlight a powerful lesson for OTAs, and that is smart, automated payment infrastructure doesn’t just cut costs, it builds trust with suppliers, strengthens financial resilience, and unlocks scalable growth in competitive markets.
In this exclusive interview with Rihlat Travel News, Fredrik Ekstrand, Head of Business Development and Supplier Relations at Sembo Group, unpacks how Outpayce helped transform their payment strategy, and what this means for other OTAs looking to improve their payment systems.
What challenges do most Online Travel Agents face with current payment systems?
OTAs often face significant challenges with payment systems, including low acceptance rates for virtual cards, high processing costs, and poor access to rebates. These issues can limit their ability to build effective supplier relationships and scale globally. This was the case for us at Sembo.
Prior to implementing Outpayce’s B2B payments solution, we paid our suppliers with a limited number of virtual cards, and we were only connected to a limited number of airlines for payments. Additionally, our virtual card acceptance rates were less than half, as many airlines were sceptical due to the high acceptance costs associated with our existing payment setup. When airlines rejected a virtual card, we had to use another method to make the booking, which is a lot more manual work. This was inefficient for us, and impacted our relationships with airlines. It was an inflexible set up.
After we started working with Outpayce, we saw a transformative impact. The number of connected global airlines increased to over 150, our virtual card acceptance rate increased by 30%, and we are now able to utilize 14 different virtual cards. We’re far more strategic with our supplier payments now, optimizing transactions in line with our strategic goals such as preserving cash flow or maximizing rebates. Adopting B2B Wallet has significantly enhanced our global payment capabilities and supplier relationships.
What specifically did Outpayce implement to help Sembo unlock that 30% uplift in virtual card acceptance and what did that do to your business?
Outpayce implemented its B2B Wallet solution with built-in payment orchestration technology that played a key role in improving our virtual card acceptance rates by 30%.
Knowing which payment is best in every case is a difficult task, and time consuming. Will the airline accept the card? Is the card issued locally to the airline, therefore reducing the acceptance cost? Do we receive incentives from the airline for paying with a particular card? B2B Wallet automates this process and reduces the cost of payments at the same time. Intelligent recommendation technology automatically selects the most suitable virtual card dependent on our priorities – say cashflow improvement or rebate maximisation – and the priorities of the airline we’re paying, making something very complex extremely simple.
The uplift in card acceptance had a direct business impact for us. We were able to significantly increase our access to rebate opportunities, establish more relationships with airlines, and improve our acceptance rates to make virtual card use viable on a global scale. As we continue to expand our operations in Europe and beyond, this has been a vital change for us to remain competitive in what is a very crowded OTA market.
How would a robust payments infrastructure support OTAs like Sembo scale and expand into new geographies?
A robust payments infrastructure has been a fundamental part of our international expansion. Our plans to grow into Spain, Germany, the UK, and eventually the Netherlands means we need a payment system that is both adaptable and reliable across borders. B2B Wallet supports this by offering seamless connectivity with over 150 global airlines and by enabling transactions in new markets without operational friction.
And as we enter new countries and work with new currencies and suppliers, the intelligence and flexibility built into Outpayce’s platform ensures that payments remain aligned with our strategy. The relationship also provides valuable data on which airlines accept which cards, and what rebate levels can be achieved, which simplifies the decision making process.
Outpayce’s global support team is positioned to respond quickly to queries, which is key for maintaining smooth operations as booking volumes increase. The infrastructure we’ve developed together actively accelerates our growth.
How does the Outpayce-Sembo partnership exemplify the evolving landscape of payments and supplier partnerships in the travel industry?
Payments aren’t a back office function anymore, they are an important part of our strategy, enabling growth and creating efficiency. It’s a trend in the industry– payments are becoming far more important to the customer experience and commercial success. Data driven solutions are replacing outdated, static infrastructure, and the opportunities this presents are there for the taking. Payments are now both secure, and revenue generating.
It also shows that capabilities like payments orchestration are starting to catch on in the travel industry. Our payments are intelligently managed behind the scenes to align to our goals thanks to orchestration, which creates efficiency on a global scale and improves the traveller experience. Orchestration takes out a lot of the friction that exists for travellers, which is invaluable to their experience, and affects their loyalty.
What advice would you give to other travel companies looking to optimise their payment systems and improve relationships with airline suppliers?
For travel companies aiming to enhance their payment systems and build stronger relationships with suppliers, the Sembo-Outpayce experience offers valuable lessons. Choosing a flexible, intelligent payment solution is essential to long term and international growth and efficiency.
Companies should look for partners with deep industry expertise and strong relationships with suppliers. This can make difficult situations far easier to manage, such as negotiating rates and navigating new currencies and geographies. Automation and orchestration tools, like those provided by Outpayce, are crucial in reducing manual effort and ensuring that the most beneficial payment method is used every time. A scalable infrastructure that supports multi-currency transactions and provides robust security measures can also prepare a business for international expansion. In short, travel companies should view payment optimisation as a strategy and work with a partner that enables them to do that.
