Deutsche Bank announced a pilot project with the International Air Transport Association (IATA), the trade association for the world's airlines, to test a payment model intended to reduce costs for processing payments between airline clients and airlines, according to a press release from the bank.

Deutsche said it will collect customer payments directly from consumer accounts in line with the newly revised EU Payments Services Directive, PSD2. Today, payments are mainly processed via credit and debit transactions.

Deutsche said the new payments scheme will offer improved speed, security and transparency. Two-factor authentication will offer enhanced fraud protection for the association and its member airlines. With direct payments being processed and received in near-real time, member airlines will benefit from the acceleration of their funds, according to the release.

"The direct payment model promises significant cost savings and efficiency gains for our members," Javier Orejas, head of banking for EMEA and the Americas for the International Air Transport Association, said in the release. "With airlines paying huge amounts for transaction fees and compliance — in addition to losses sustained due to fraud – this is a highly valuable innovation for the industry."