Transferring money from one side of the world to the other is complicated, right? Wrong. Mobile wallets let travel agents and travelers bypass cash and currency issues with ease.
“Business travelers are looking to use the same technology they use in their personal lives when they travel. irtual payments are becoming more popular while offering increased levels of payment security.” – Jessica Collison, GBTA Research Director
The rising popularity of mobile payments does not surprise us. (We already told you about virtual cards in business travel 2 years ago.) What is stunning, however, is the incredible speed at which the same technology has taken over the leisure travel market.
This short trip will be fast, fiscal and fascinating – are you strapped in?
On land, sea and in the air
Travel Providers Need to Embrace Digital Payments or Risk Becoming Irrelevant – a surprisingly crude claim until you notice that the Skift-article is sponsored by a mobile payment business.
Nevertheless, they offer a few interesting reasons for the success of mobile payments on land, sea and in the air. Besides reducing the cost of Payment Service Providers, that is:
- Ground transportation. Taking a cab without money or even cards changing hands – mobile payment offers an easier customer experience.
- Airline business. Saving tickets on mobile devices, getting the latest flight information – mobile is already ingrained.
- Cruise ships. Due to the multiple currencies guests use on board, cash payments create a big issue: waiting lines.
Mobile is part of a bigger trend
Remember when you needed to carefully estimate how much foreign money you thought you would need on your next trip? Those days are over. Just like the days of relying on your (or your travel agent’s) preparations to plan everything in advance.
Travel abroad increasing, trips are getting shorter and people are trying to visit more countries in a single trip. So bye bye cash, hello flexible paying methods. As card payments are getting popular, the number of mobile payments is growing too.
And the travel industry is catching on. Over 95% of interviewed companies plan to introduce new payments innovations in the near future, with over 14% planning a ‘lot of new innovations’ – according to a new study written by PYMNTS, and commissioned by Amadeus.
Online payments: credit cards vs e-wallets
Surprising conclusion from a recent Worldpay study on online payments: credit card use will decline until 2021, while e-wallets will keep gaining popularity.
- The use of credit cards is expected to decrease to 15% in 2021.
- The use of e-wallets is expected to rise to 46% in 2021.
“Why?”, you ask? Transactions made with e-wallets benefit from more sophisticated authentication methods, such as facial recognition and thumbprint technology. Safe.
Dare to go mobile?
82% of travelers already use their mobile device when booking air travel – and that fundamentally changes your business.
Did you know that Amadeus B2B Wallet can also save you 1% of your total revenue? That’s right, it now has a ‘Payment Orchestration’ engine that automatically chooses which form of payment is most advantageous for each transaction.