Today'spayment options are virtually limitless. Both businesses and consumers are interested in faster, safer and more personalised methods, as cash has become obsolete and credit cards are gradually disappearing. The mobile environment and social media are emerging as the real channels to watch, responding directly to the demands of the younger generation.
According to the WorldPay Global Payment Report55% of all transactions are made using alternative payment methods. Therefore, tourism brands must adapt to a global market that will penalise a lack of flexibility. These are the 3 ways that every tourism company must implement to be successful:
1. Paypal
It is theworld's most popular alternative payment method, and has a well-known reputation. It allows you to obtain products or services through a personal account that contains your credit or debit card details, maintaining confidentiality at all times. Paypal is a payment gateway, which helps to avoid fraud on the web. The payment gateway acts as an intermediary to ensure that customer data is encrypted against possible threats. For this reason, it is especially useful in new or little-known companies, where the user prefers not to expose their personal information.
2. Prepaid cards
Prepaid cards act like those known for mobile phones, where a specific amount is set for each moment. They are radically different from credit cards, preventing the accumulation of debt and are ideal for the "centennial" public, which handles limited amounts and needs greater spending control. In the online framework, they guarantee that in the event of fraud, only the amount of money previously charged is affected. In short, it is a perfect alternative for building loyalty among younger travellers.
3. eWallets and applications
These apps allow travellers to make reservations, pay for products or services and complete any kind of transaction from their mobile phone. In Europe, we are seeing a boom in eWallets: MobilePay is already the preferred payment method among young Danes, while Sweden is about to become the first cashless country. In addition, WeChat and Alipay handle 94% of eWallet transactions in China (according to SkyScanner data), with movements reaching USD 5 trillion. This shows their strength, with a promising future ahead. American Express has been a pioneer in Spain with the possibility of payment through Apple Pay. Digital wallets create new opportunities for the tourism sector. Mobile devices become mobile points of sale, facilitating instant purchases. Restaurant reservations, car rentals or scanning codes to buy holiday packages: the possibilities are endless.
For Ángel García Butragueño, Co-Director of the BRAINTRUST Tourism Barometer: "The conversion rate and usage of each payment method must be continuously analysed. Only in this way can the changes and demands of the target audience be addressed. The market changes very quickly, the consumer is creating new habits and behaviours, not analysing them and acting accordingly can leave any company out in the cold".
According to José Manuel Brell, Co-Director of the BRAINTRUST Tourism Barometer: "Companies in the sector must offer new forms of payment adapted to the new times. This is a smart way to increase sales and gain loyalty, as the availability of different alternatives generates a positive perception".
At BRAINTRUST we can help you create the strategy that best suits your needs. We have the best means to advise you in the configuration of value propositions that will increase your sales.
Do you want to get detailed information? Contact us and ask for our Tourism Barometer, the methodological support that determines the market's willingness to travel, as well as the trends that allow all travel industry suppliers to identify business opportunities and adjust their offer to consumer preferences.
