“It is a huge task,” says Juan Antonio Rodriguez, IATA’s Executive Director Financial Services, BSP and CASS, “But it is managed extremely effectively. A significant number of transactions go through the BSP and less than 0.01% of that money is unrecovered.”
IATA’s BSP reaches 185 countries through 155 operations, giving it a genuinely global presence that few organizations can match. Of course, this excludes the United States, which has its own remittance and settlement system.
How it works
When a passenger pays for an air ticket at a travel agent, that money is held in trust by the agent during the remittance period—a timeframe discussed at the national level then endorsed and agreed at the Passenger Agency Conference. At that point, along with all other ticket sales by that agent, the money is sent to IATA, which then settles all ticket sales with each airline.
Worldwide, IATA collects funds from 60,000-plus agents, so it is a complex operation. But for an agent there is one contact with IATA rather than with hundreds of airlines. And it is the same for the airlines. Multiplying the number of airlines by the thousands of agents and 185 countries provides clear evidence of the financial control and efficiency the BSP provides.
“Most importantly, it is by far the most financially efficient way of collecting ticket sale revenue,” says Rodriguez. “It depends on the type of payment, but we’re talking about a few cents per transaction rather than $7–$10 for a credit card. The BSP is a secure and affordable way of moving money from point A to point B.”
About a decade ago, the average time from ticket sale to airline receipt of the money was approximately 19.5 days. In 2025, it was 12.4 days and the aim is to get this under 10 days in the coming years. This will largely be achieved by collaboration between airlines and agents to reduce country remittance periods. Most operate on a weekly basis, but it can vary. China’s remittance period is just three days while instant payments, such as IATA Pay and EASY PAY, are settled daily.
It should also be noted that credit card payments through an airline website are not always instantaneous. It may appear to be immediate from the purchaser’s point of view, but it could take a few days for the funds to end up in the airline’s bank account. The BSP, therefore, not only significantly reduces the cost of each transaction but also is competitive on settlement times.
Short-term evolution
To stay ahead of industry developments, the BSP continues to evolve. The BSP is expanding its settlement functionalities to support travel agencies and airlines in the shift from tickets to Offers and Orders, ensuring a seamless and future—ready approach to airline retailing.
E-currencies are also being integrated into the BSP. The first of these is the eCNY (Chinese renminbi). As the Chinese government accelerates the nationwide adoption of eCNY, all airlines operating in China will be required to accept this form of payment, and the IATA BSP will be an enabler.
Blockchain-based currencies, such as Bitcoin, are being evaluated too. Once, these currencies were perceived negatively but that is rapidly changing with governments getting involved in the area. “If airlines want to go in that direction, the BSP will be ready to support them,” says Rodriguez.
Additionally, robotics is having a greater influence. In 2025, 31 bots were added that improved IATA’s ability to manage the BSP and fund management safety and efficiency. With the amount going through the BSP ever increasing, bots will be essential to help with workloads. IATA is investing heavily in this area, and it is envisaged there will be 40 additional bots in 2026.
Longer-term plans
Although short-term developments meet the current requirements of the BSP, IATA remains committed to assessing a comprehensive transformation that will necessitate in-depth legal and governance evaluations.
The BSP has historically worked on fixed remittance periods in each market; all agents remit on the same date. But the evolution of distribution and business models may require the BSP to accommodate remittance based on bilateral agreements between an airline and agent.
“We can envision a BSP settlement world in which airline and agent agree on the time between sale of ticket and the receipt of monies,” says Rodriguez. “Offering customized remittance periods will require a legal assessment, governance changes, and new technical capabilities, but it will become essential as Order management matures.”
Another longer-term consideration is expanding BSP settlement capabilities to all items included in an Order, such as trains and buses and eventually hotels and other service providers. Rodriguez says this may add value to the aviation ecosystem and help solve existing process friction.
Expanding the reach
There are very few countries not in the BSP. But that doesn’t mean opportunities aren’t being explored and it is hoped that Uzbekistan will be added in 2026.
Including indirect activities, such as tourism, aviation contributes $795.5 million, or 0.9%, to Uzbek GDP and supports 128,000 jobs. Tashkent Airport also opened a dedicated cargo terminal in 2025, strengthening the country’s growing role as a transit point for air cargo. “With the industry growing rapidly there, we see the opportunity of bringing the BSP service to Uzbekistan,” says Rodriguez.
The BSP’s comprehensive coverage significantly simplifies airlines’ network expansion plans. Any carrier looking to expand into new territories will find that the BSP makes this ambition considerably easier to achieve. Through the BSP, all accredited agencies within a country become available to the airline in an almost seamless manner.
“This means the airline can focus on the expansion of the route network while we manage the flow of money between the agents and the airline,” says Rodriguez.
“In total, the BSP manages close to 720 million transactions per year,” he adds. “The vision is to manage 1 billion transactions by 2030. The BSP will continue to support the aviation industry and be the most affordable and efficient way of moving money.”
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