The FinTech sector is progressively becoming an essential segment of various industries, Travel & Hospitality industry is no exception to the digital shift. The cashless future that we envision for the country can be realized only with industrious commitment to interoperability between different sectors. Future of Travel & Hospitality industry in the digital age requires diligent participation and adaptation of new innovations at scale, by all relevant stakeholders.

A seamless customer experience is the primary objective of promoting collaboration between different sectors and stakeholders. Travel & Hospitality industry is extensive and varied with several distinct demographics functioning in tandem. Building a seamless payment experience in the travel & hospitality industry is a complex undertaking requiring efficient interoperability between several different stakeholders. Here are 4 payment trends that can be harnessed by the Travel & Hospitality industry for imminent success.

1. Mobile Payments

The transition from cash and card-based payments to mobile payments has charted a staggering growth in India. According to ACI Worldwide Report, India has recorded 48.6 billion real time transactions in 2021. With increased internet penetration and accelerated digitalization, mobile payments are one of the chief preferred modes of payments.

Providing a seamless payment experience for the consumer needs to be the focus of the travel & hospitality industry. Mobile Payments have become a significantly major contributor to the digital payments sector. Availing a secure and reliable payment service provider is key to creating a safe and seamless payment experience for the consumer.


2. Payment Links

Marketing has long transgressed from traditional media channels and migrated to numerous social media channels. According to WorldPay, 43% of flight bookings start with social media offers. The transition between social channels and capitalizing on the lead needs to be seamless- with customer preference to pay with a single click.

Payment Links or Social Selling Links are key to resolving this challenge for the travel & hospitality industry. Generating Payment Links that can be shared on social media channels is made easy by availing the right services from a reliable and secure Payment Service Provider.


3. Subscription Models

Subscription models have been adopted by businesses from several different sectors to varying degrees. Widely successful, the entertainment industry was able to monetize a sizable consumer base using subscription services. Subscription services are a persuasive business model to create engagement and long-term relationships with consumers.

Travel & Hospitality industry is seasonal and is known to experience growth-decline cycles. The subscription business model is an enticing prospect for the consumers as well as the business. It gives the incentive for consumers to afford expensive travel plans at a discounted price, in smaller installments instead of a single payment. It allows businesses to promote brand loyalty and ensures a stable revenue stream.


4. Buy Now Pay Later

The BNPL (Buy Now Pay Later) is a credit-based digital payment method where a third-party pays the entire amount to the merchant and consumer pays the amount to the third-party in instalments. This allows consumers to set up a short-term, flexible financial plan enabling them to make a purchase for a product/service. According to Juniper Research, the BNPL sector is expected to chart a 291% market growth between 2022 and 2027.

With the Travel & Hospitality industry experiencing increasingly sporadic business periods, the BNPL is a godsend. Enabling consumers to purchase services without a hard credit pull, higher interest rate or fees, etc. and merchants get paid in full at the time of purchase. This allows travel & hospitality industry stakeholders to upsell their products and services to the customer at the time of purchase.