Cash Asserts Itself at Continental Airlines

Hold the requiem for cash. It's still flexing its muscles as a payment vehicle, as witness the deal announced today by Western Union Financial Services Inc. and Continental Airlines. Starting now, customers who book seats on the airline's Web site can pay by cash at any of 45,000 Western Union offices around the country. They can later pick up their boarding passes at Continental ticketing kiosks at the airport, or on the Continental site, as if they had paid by credit card. Continental gives several reasons for offering the cash alternative. First, 23 million U.S. households don't have credit cards, the airline and Western Union say in a joint statement released today. On top of that, they say, up to 40% of remote credit card authorizations are rejected, and 45% of cardholders have exhausted 95% or more of their credit limits. At the same time, the option offers the airline a low-cost source of guaranteed payment. Customers who choose the cash option when they book their reservations on the Continental site will receive a confirmation number. They then head for the closest Western Union outlet, many of which are open 24 hours a day. They hand over the confirmation number, along with their cash, to the agent, who confirms the reservation and forwards the cash, charging the customer what Western Union, a unit of First Data Corp., calls a “nominal” fee. Customers have 24 hours to pay for seats in full to guarantee their reservations.