A new report from Research and Markets says that technology-driven solutions in travel payments — such as Apple Pay — are something that will likely help the travel industry to recover after the major disruptions due to the COVID-19 health crisis.
What’s more, as alternative payment methods are making inroads, Buy Now Pay Later solutions to attract additional attention of travelers around the world.
The travel industry realized the importance of technology in payments during the COVID-19 pandemic
Research and Markets says that one general trend in online travel during the pandemic is the increasing use of technologies in payments. According to a September 2020 survey by the research group, more than seven in 10airlines globally plan to implement or advance mobile touchless payments by 2023.
What’s more in 2020, close to half of the global tourists stated that technology-driven solutions are a key confidence booster in travel — and a further four in 10 of them noted that contactless payments, including Apple Pay, Google Pay, PayPal, Venmo, would make their travel experience better during the COVID-19 health crisis.
Research and Markets says that, in 2020, almost one in five travelers worldwide left a travel-related purchase unpaid as a contactless payment option wasn’t available. Additionally, a significant share of travelers in Canada, the US, Japan, and the UK found “ease of paying” to be a factor that substantially impacted their travel decisions in 2020, and, in particular, a choice of a travel agent or a tour operator.
Another trend on the online travel payment scene is towards Buy Now Pay Later solutions. According to Research and Markets, the availability of a BNPL option in 2021 was an important factor for almost a quarter of travelers worldwide when booking a service related to a trip. Moreover, in the Asia-Pacific area, over two in 10 travelers opted for this payment method when it came to traveling during the health crisis, and the share of Chinese tourists using it was more than double the regional average.
