Abta Travel Finance Conference: Attendees discuss Continued from page 64


EES is expected to become operational in October 2025 [and] Etias to follow in the last quarter of 2026.” They also endorsed a “progressive start” of EES operations over six months. But both this and the October launch have still to be confirmed by legislators and by all member states declaring their readiness. Only then will the EC “decide on the specific date”. It was a lack of readiness


that led to postponement of the previous launch date in November, the fourth delay in five years. Member states will be


expected to start EES operations at one or more border crossings and register at least 10% of non-EU arrivals from the launch date, to reach full registration within six months. All passports will continue to be stamped in the meantime. Implementation at one place but not at others appears likely to confuse travellers. But there is an added


complication. It was revealed in February that the European Public Prosecutor’s Office is investigating after the Moscow office of French IT group Atos, one of three IT firms involved in developing the EES, acquired software for the biometric data system under a licence granted by Russia’s FSB security service. The Foreign Office updated


its guidance on travel to EU countries on Monday to reflect the likely October launch of the EES, noting: “You will be required to submit your fingerprints and have your photo taken at dedicated booths. You may experience longer queue times.”


Drop in credit card use ‘puts pressure on Atol’


Ian Taylor


The costs of processing and protecting consumer payments in travel remain high in comparison with other sectors despite the growing range of payment options. But a lack of consumer financial


protection on some forms of payment should be a concern. David Sykes, chief commercial


officer at Klarna, which offers ‘buy now pay later’ options, said: “More and more consumers in the US and UK are making a conscious decision not to use credit cards.” He told the conference: “We have


a portion of consumers steering away from credit cards and a portion with no access to a credit card. About half UK adults have used our product, trying to avoid the 36% APR [annual percentage rate] on card transactions.” Sykes suggested: “Buy now pay


later used to be the most-expensive form of payment. Now we’re the cheapest because of our scale.”


Businesses warned of need to update cashflow forecasts


Short-term cashflow is a priority for any business in financial difficulty but too many firms fail to update their cashflow forecasts, according to KPMG associate director Heather Bamforth. Bamforth noted rising costs,


the increases in employers’ national insurance contributions and the minimum wage, and


62 20 MARCH 2025 James Simcox, chief product


officer and international managing director at payments technology firm Equals Money, suggested the main benefit of ‘open banking’, or direct payments between accounts, “is speed in getting your money”. He said: “Our business is all


about how you can pay faster. Most payments are made in 90 seconds, and you can make multiple payments. You can issue repayment immediately.” But Simcox suggested the


benefits to business also include “no chargebacks and no consumer protection”, saying: “As a business, that


reduction in business rates relief are “impacting all parts of financial statements” and said: “Everybody has a problem with cash, not just one size of business.” She argued “it has become


difficult to predict what will happen, you can really go to town on scenario planning” but warned: “Uncertainty creates risks.” Businesses with cashflow issues


need a weekly cashflow balance, she argued, saying: “Businesses fail when they run out of money. Monthly balances do not show fluctuations in purchases, in costs of sale, in overheads.”


She said: “Not having effective


cashflow forecasts is very common. I can’t tell you how many times I’ve heard a business say it has a great cashflow forecast and it has not been updated for six months.”


travelweekly.co.uk


Sami Doyle


is quite good. Consumers don’t need to know that. The challenge is to get consumers to do it. The best way is to make it the first [payment] option.” However, he noted: “We’ve not


seen much open banking in the merchant space. Consumers are not really used to it.” Sami Doyle, chief executive of


TMU Management, argued: “Payment institutions are not designed as credit institutions [and] travel creates an additional level of risk.” As a result, he noted: “There


are probably 12 active merchant acquirers in the UK and [only] five in this [travel] space.” Merchant acquirers process the card payments taken by retailers. Doyle said: “All these options


are driven by consumer adoption. [But] more payments made account to account put pressure on financial protection and the Atol scheme.” He suggested: “You end up having


the same credit-risk conversation when you get to a certain scale.”


Cashflow ‘should be assessed on a weekly basis’


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