At the time of writing, American Airlines stated that it plans to start the transition process for its Barclays cardholders to Citi in 2026, however, it did not offer any additional details on the move. Also, the airline mentioned in its statement that it projects payments it gets from its co-branded credit card and other partners to scale 10% a year. According to its data, in the period through 30 September 2024, American Airlines obtained USD 5.6 billion from these deals.
As part of the deal, which saw negations taking months to complete, Citi is set to manage credit card sign-up promotions, including those on flights and at airports, taking over Barclay’s portfolio. Additionally, the move comes as part of American Airlines’ commitment to scaling its revenues from its loyalty programme. According to people cited by CNBC, the airline was discussing the transition in September 2024, aiming to drop Barclays from its partnership and replace it solely with Citi. At that time, American Airlines was also collaborating with banks and card networks on a long-term deal, intending to advance its business by having a single issuer.
In recent years, paytech solutions have emerged as a fundamental part of the travel experience, ranging from debit or credit cards and Open Banking to digital wallets, BNPL, and digital currencies. As detailed by Eric Drésin from ECTAA in one of our editorials, these trends are broadly leveraged in the industry, optimising payment experiences for travellers and touching on the sector’s main pain points. Cryptocurrencies are not yet among the widely used options, however, digital wallets are on a roll, gaining popularity due to their flexibility and cost-efficiency and being able to cater to consumer preferences.
When it comes to Citi, the financial institution has been working on further scaling its input in this industry, entering collaborations to introduce solutions that meet the needs of travellers. For example, November 2024 saw Citi teaming up with the Bank of Shanghai to launch a payment service for international travellers visiting China. The solution was part of the Bank of Shanghai’s TourCard, intending to deliver international travellers with access to a secure and convenient CNY payment journey while exploring China.
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