Payment Trends to watch in 2023

Historically the travel sector has had huge issues with reducing shopping cart abandonment and increasing sales conversion. It is fair to say that for many airlines and other travel merchants, there are opportunities to improve the retail customer payment experience that will reduce dropouts.

Many airlines and agents also lose customers in the buying process due to only being able to offer limited payment methods and alarming some have even relied on only one payment provider, which is a high-risk strategy and can have huge consequences.

At FinMont we offer a unique payment orchestration solution that allows merchants and airlines to stay on top of any changes in the industry but what are the new trends to look out for in 2023?

  1. Buy Now Pay Later (BNPL)

BNPL is already a major payment method across retail with brands such as Klarna increasing sales and hugely benefitting the online retail sector. If this solution was replicated in travel it would allow flexible payment by instalments and an increase in sales as consumers can book flights and travel without any payment upfront.

This will also give travel merchants the opportunity for product upselling as travellers may be able to afford to make a higher-value purchase or to add more ancillary services.

  • Multi-currency pricing

Offering multi-currency pricing allows the travel industry to always offer the currency the traveller is most comfortable with increasing traction and sales. As has been across the industry even the slightest friction during the buying process can result in lower conversion rates. Consumers expected seamless, fast and transparent shopping experiences and taking control of FX services on their own websites is one way to increase conversion.

  • Tackling Failed Payments

Failed payments mean frustrated consumers as no one likes the inconvenience of a payment not processing and it often puts people off the brand completely meaning many will head to a competitor’s site to secure the booking.

Many successful firms have utilised seamless payments to become market leaders. For example, a key part of Uber’s success can be attributed to its invisible payment experience, where you can order a car quickly and easily with no visible payment. Using Payment Orchestration, the travel industry can make payments seamless and reduce failed payments and consumer frustration.

  • Mobile payments

According to Worldpay, 43% of consumers’ journeys to buying a flight begin with a social media post or advert so it is essential that airlines and travel merchants can offer a seamless mobile payment experience. Consumers want a one-click payment solution as they are accustomed to on Amazon and other retail brands which is another reason why payments are becoming a much more critical part of the consumer journey and key to any travel brand’s success.

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