7 key travel payment trends of 2020
What payment trends in travel will take place in 2020? How will they change the way we pay today? Which patterns will they replace?
With 2020 on the corner, more and more people are wondering what travel payment trends they should expect in 2020. Forewarned is forearmed, after all.
That is why we have conducted vast research and created a full list of upcoming trends you should look out for this year. So, enjoy the results of our hard work in this article!
By the way, check out how to open a travel merchant account.
Seven leading travel payment trends of 2020
Improved P2P payments solutions.
It’s not a secret that sharing economy is becoming more and more popular. Statista has recently reported that more than 16 million U.S. adults will use lodging sharing economy services in 2020. And this number is growing up to more than 19 million by 2020.
You might wonder what this fact has to do with key travel payment trends. However, the link is quite obvious.
As more people want to combine their business trips with leisure travels, they opt for home-sharing services to extend their stay. At least 25% of people interviewed for the 4th Business Travel and Technology Survey by Egencia have used such services in the UK. Besides, even more are planning to use them in the future.
These facts call for improved P2P travel payments. Developers pay special attention to card-to-card and bank-to-bank transfers. They really are a tailored solution to meet the needs of a demanding audience. So, aim to have fast and problem-free P2P travel payments to increase the retention rates and attract new customers.
Big Data and machine learning.
Most merchants now collect all the data about users. They have been doing it for years now. However, only the biggest and most tech-savvy ones like Target were able to make the most of that data for their business.
Nevertheless, today merchants of all sizes and from all niches can afford to use artificial intelligence to fight fraud and chargebacks. With it, they make travel payments personalized and straightforward and reduce the number of employees needed to make online travel payments simple and pain-free.
Besides, these technologies are also used for the development of special Fraud and Chargeback prevention software.
So, we are not afraid to say that another core travel payment trend of 2020 involves Big Data and Machine Learning.
Increased number of alternative payment methods.
It is known that in 2020 companies will spend at least 6% more on business travels due to an increased need for traveling all year long. The CEOs and owners of large corporations now believe that in-person meetings really are a key to successful collaboration inside a team.
This results in shared economy growth we discussed above. However, it also means that we can expect a significant increase in the quality and number of alternative online payment methods used to pay for airline tickets.
These methods will vary depending on the location of a particular user. However, as Forbes states, “Players like Alipay and WeChat, which offer Chinese consumers a lifestyle-driven app with commerce capabilities, are powering many of these transactions in China and now increasingly abroad.”
And it is worth mentioning that e-wallets are gaining their momentum too.
Cryptocurrencies truly eliminate borders. As a result, travel payments made with them will really speed up the process.
There is no linking to one’s location, and the process is quite transparent. So, we expect more and more businesses to open their doors to blockchain and cryptocurrency payments. They can give the new life to instant cross-border travel payments.
Besides, such travel payments are typically much more secure. So, that’s something for you to think about!
Even though we have been told that mobile travel payments are “the new black” for years, in reality, their time is only coming now. People pampered by the technologies that allow shopping anytime and anywhere is now also willing to pay for their goods and services online in just a few clicks.
One-click payments will no longer be something only Amazon can brag about. More and more companies are now investing thousands of dollars in enabling one-click travel payments.
Why? Because they create a seamless experience. And, honestly, users love it. No idle waiting, no complicated forms to fill out. And no need to enter your credit card information over and over again. You will now be able to book an apartment, order a meal, or get a new pair of jeans all in one click.
Travel payments are made very simple. Thus, merchants can now enjoy decreased cart abandonment rates. Now, that’s just incredible, don’t you think?
The one issue that has been bothering both merchants and clients for a long time whenever the question of online payments arises.
How safe is your data online? How can you identify which merchant you can trust and which one should not be trusted with your money? Is there a way to ensure that sensitive data you share won’t fall into the hands of any unreliable third-party solution?
Online travel payment security is the number one issue companies pay attention to. With new cyber attacks coming into being, the measures merchants take to prevent any information leak get more and more serious, technology-wise. Do not forget about PSD2 and GDPR regulations that are already known to be big game-changers too. We expect this to be another important travel payment trend of 2020.
The emergence of new payment methods.
This is another important trend we expect to see in 2020. With ubiquitous sensors, wireless travel payments, and voice interfaces, customers become more sophisticated and demanding then they used to be, let’s say, ten years ago.
That is why Forbes explains that “Consumers expect frictionless checkout experiences combined with the same level of security across all devices as exists today with other more established payment forms.”
Merchants willing to meet and exceed clients’ expectations are already trying to implement this (remember about the breakthrough of IoT technologies?) So, we are waiting to see great things happen in 2021 in this niche as well.
All in all, these travel payment trends will truly change the way we pay in 2020. And though we are sure that there still will be surprises, we cannot wait to see transformations in this area!