SAS and ARC Reshape Flight Payments with New Flexible Booking System

ARLINGTON, Va. – May 14, 2026 – In a significant move to modernize the air travel booking process, Scandinavian Airlines (SAS) has activated Multiple Forms of Payment (MFOP) through a partnership with Airlines Reporting Corporation (ARC). The new capability allows travelers and travel agencies to use more than one payment method in a single transaction, marking a critical advancement in an industry racing to catch up with modern e-commerce standards.

This development, announced today by ARC, enables SAS to accept combined payments—such as splitting a fare between a credit card and a debit card, or using cash alongside another method—across all sales, exchanges, and refunds. The feature is integrated into ARC's settlement platform for transactions processed through the Global Distribution System (GDS) EDIFACT channels, a foundational but aging data standard for the travel industry.

"Airline retailing is evolving rapidly and payment flexibility is a critical part of that transformation," said Shelly Younger, ARC's Head of Offers and Settlement, in the official announcement. "SAS's adoption of Multiple Forms of Payment gives agencies and travelers more choice while improving the accuracy and efficiency of settlement and reporting."

Overcoming Legacy System Limitations

For decades, the airline industry has relied on the EDIFACT messaging standard to communicate fare and schedule information through GDSs like Amadeus and Sabre. While reliable, this legacy infrastructure has struggled to keep pace with the dynamic nature of modern digital retail. It traditionally restricted transactions to a single form of payment, creating friction for both customers and the travel agencies serving them. This rigidity often prevented airlines from offering complex product bundles or providing the payment flexibility that consumers now expect from virtually every other online purchase.

The introduction of MFOP directly confronts these limitations. By allowing a mix of payment types within one booking, the system provides travel agencies with smoother processing and greater control over how transactions are structured and reconciled. This is not just a matter of convenience; it is a fundamental upgrade to the financial plumbing of airline ticketing, designed to reduce booking abandonment rates that often occur when customers cannot use their preferred or multiple payment methods.

A Strategic Move for SAS

For Scandinavian Airlines, adopting MFOP is a strategic maneuver to enhance its competitive edge in the crowded European market. In an era where customer experience is a key differentiator, providing seamless and flexible payment options is crucial for attracting and retaining travelers. The airline industry is increasingly aware that a cumbersome payment process can be a significant deterrent, leading to lost sales and customer dissatisfaction.

This initiative aligns with SAS's broader digital transformation goals, which focus on creating simpler and more user-friendly solutions for its customers. By embracing MFOP, SAS can better cater to diverse customer preferences, from travelers wanting to split costs among different accounts to corporate clients needing to manage complex payment arrangements. This move improves the front-end customer experience while simultaneously streamlining back-end reconciliation for its travel agency partners, boosting operational efficiency across the board.

The capability is essential as airlines move toward more sophisticated retailing strategies. The ability to support complex payment scenarios is a prerequisite for offering the dynamic pricing, personalized offers, and ancillary bundles that define modern airline commerce.

Paving the Way for Order-Based Retailing

The activation of MFOP is more than just a payment upgrade; it is a vital component in the airline industry's larger transition toward a new era of retailing, guided by concepts like the New Distribution Capability (NDC) and "order-based retailing."

NDC is an XML-based data standard developed by the International Air Transport Association (IATA) to enable richer communication between airlines and travel sellers. It allows airlines to distribute their full range of products, including ancillary services and personalized packages, bypassing the limitations of older systems. However, selling these complex "offers" requires a new way to manage the transaction itself.

This is where order-based retailing comes in. The goal is to replace the fragmented system of Passenger Name Records (PNRs), e-tickets, and miscellaneous documents with a single, customer-centric "order" that contains all aspects of a traveler's journey. To fulfill this vision, the payment and settlement system must be able to handle the complexity of these orders. MFOP is a foundational piece of that puzzle, providing the flexible payment infrastructure needed to support a single order that may include a flight, seat selection, extra baggage, and onboard Wi-Fi, potentially paid for with a combination of loyalty points and a credit card.

ARC's Quiet Revolution in Travel Settlement

This partnership also highlights the critical, often behind-the-scenes, role of ARC in the air travel ecosystem. As the financial backbone processing over $100 billion in U.S.-based agency air sales annually, ARC's platform is central to the industry's evolution. The push for MFOP is part of the corporation's broader investment in modernizing reporting and settlement to support all airline retailing models across every channel.

By facilitating these upgrades, ARC acts as a key enabler for the entire industry, providing the standardized tools airlines and agencies need to adapt to new technologies like NDC. While other industry bodies and solutions, such as IATA Pay, are also tackling payment modernization, ARC's focus on integrating these capabilities within its established settlement network is crucial for widespread adoption, particularly in the U.S. market.

As ARC continues to collaborate with airlines and agencies to expand MFOP adoption, the industry moves one step closer to a future where booking air travel is as seamless and personalized as any other leading e-commerce experience. This ongoing modernization promises a more efficient and customer-centric ecosystem for all stakeholders involved.