‘Significant opportunity’ for mobile travel payments

There’s a big opportunity in the travel industry for businesses willing to invest in the mobile customer experience, according to the latest Mobile Payments Index from payment technology provider Adyen.

The report shows that browser-based mobile payments in the airline and accommodation sectors accounted for 15.5% of all transactions in the first quarter of 2016, compared with the overall global browser-based share of 32%.

This suggests that, while some travel firms are seeing an increase in mobile transactions, it is still early days for mobile payments in travel.

Adyen pointed out that mobile is already embedded in the travel process, allowing travellers to check in for flights, browse and reserve hotel rooms and in some cases even order room service via smartphone or tablet.

“Big wins are to be had by travel merchants that capitalise on this enthusiasm for mobile and integrate a seamless payment flow into their mobile experience,” the company said.

The research found that 13% of transactions for airlines are currently made from a mobile device. However, airlines that are investing in mobile are seeing a far greater share of payments on a mobile device. Adyen gives the example of Dutch low-cost airline Transavia which now has a mobile payment share of 20%, 65% higher than the airline average, after investing in a mobile-optimised experience.

“We are moving to a future where many loyal travel industry customers will make their entire journey in-app, from initial booking to final checkout, with payments as a key step in that journey,” commented Roelant Prins, chief commercial officer at Adyen. “Beyond in-app, travel merchants that invest in optimised experiences for web browsers across key device types are already seeing their mobile transaction volume increase significantly.”

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