Travel tech investment trends payments 2024
Investment in payments to rise by average of 12% this year. Improving the payment experience is top objective.
Improving the payments experience presents one of the largest opportunities in travel. Friction associated with travel payments stands in contrast to the instant, invisible payment experiences consumers have grown familiar with when paying digital native companies.
New research confirms that improving the payment experience is the top objective for 75% of senior travel payments leaders from travel companies and is prompting the industry to increase investment in payments capabilities by 12% on average over the coming 12 months.
Within the study, payments leaders were asked to rate how close their travel company is to delivering ‘a personalized omnichannel payment experience’ for travelers. The industry assigned itself an average score of 2.7 out of 5, with just 4% of respondents confirming their company already offers this by assigning the full five-star rating.
Keeping up with traveler demands to pay in new ways
More than half of travel payments leaders (51%) said their company finds it challenging to keep up with the rapid growth of new payment methods. As new card and non-card payment methods continue to surge across the world, travel companies must accept hundreds of new payment methods, often originating locally.
When probed more deeply, respondents said high costs, technical workloads and a lack of understanding about which new payments methods are popular, all contributed to difficulties delivering on traveler demands to pay in new ways.
Overcoming cross-border payments complexity
Another area of focus for payments leaders is improving how their travel company handles cross-border payments. Merchants operating in multiple markets typically need to establish partnerships with local acquirers in order to accept payments. Travel companies must also be able to analyze and control these complex payment flows to ensure acceptance rates remain high and the cost of payments is well managed. 40% of payments leaders surveyed confirmed that ‘orchestrating’ global payment flows is a top challenge.
Payments orchestration platforms have emerged over recent years to simplify this challenge by helping travel companies easily connect to a wide range of payments partners across the world, lower the overall cost of payments, as well as using Artificial Intelligence to make real-time decisions on how each payment should be processed. 38% of payments leaders surveyed said they already use a platform to orchestrate cross-border payments, with a further third planning to implement the technology over the coming year.
Top payments capabilities under implementation
When asked which payments capabilities their company is planning to implement this year, payments leaders pointed to virtual cards for B2B payments, the ability to accept alternative payment methods and delivering a consistent payment experience as key focus areas.
“It’s encouraging to see travel companies plan to increase investment as there’s a huge opportunity to simplify payments across the industry. At Outpayce we’re collaborating with partners and customers to systematically identify payment pain points across the end‑to‑end traveler journey working with airlines, hotels, airports, and travel sellers to address them through innovation.”
Jean Christophe Lacour SVP & Global Head of Products, Outpayce
About the research
An online survey was conducted with 50 senior payments leaders from travel companies with more than €1B in annual revenues, during December 2023. Respondents were drawn from the UK, France, Germany, UAE, USA, Mexico, Brazil, India, China and Korea to provide a globally representative sample of the industry.
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