PYMNTS says faster payments are a win-win for consumers and businesses – and an area where traditional payments may yield to innovative digital solutions.
Looking at the travel and hospitality industry through this lens, PYMNTS reports, “Legacy payment methods and outdated technologies continue to impede industry progress and compromise travelers’ experiences. … The adoption of real-time payment systems has the potential to revolutionize the entire travel and hospitality landscape — offering benefits to all parties.”
Specifically, says PYMNTS in “From Trips to Tips: How Faster Payments Can Elevate Travel and Hospitality,” the benefits of digital payments include elevated experiences for customers and increased revenue for companies. In addition, PYMNTS data indicates that digital payments may also lead to better worker morale and retention, since “82% of hospitality workers favor instant payouts for tips.”
So why hasn’t the travel and hospitality industry already embraced digital payments solutions? According to PYMNTS, 75% of hospitality merchants “purchase new payments technology only once every three to 10 years, or even less often.” In other words, even though many consumers prefer digital wallets, merchants’ payments systems lag behind.
These merchants are leaving money on the table, says PYMNTS, as it reports the following:
- “Digital wallets have become an indispensable travel companion for 74% of consumers, especially affluent and Millennial travelers, at 83% and 82%, respectively.”
- “Customers using a digital wallet at a restaurant spent an average of $44 per visit, compared to only $33 spent by customers using traditional payment methods.”
- “The average retail purchase among digital wallet users is $95, in contrast to $81 for non-digital wallet users.”
Of course, the benefits of faster payments are not limited to travel and hospitality. Other industries have something to gain, as well, since many currently struggle with some of the same issues PYMNTS describes in the travel sector. For example,
- Tech challenges – PYMNTS says, “At 69%, the difficulty of integrating new technology with existing legacy systems was cited as the industry’s top challenge.”
- Data security – PYMNTS also reports, “Another major challenge is maintaining the security and privacy of guest data, at 38%.”
The bottom line? Tackling these challenges may become a “strategic imperative” since “digital wallets have become essential to travel and hospitality experiences,” says PYMNTS. Merchants who accommodate the needs and preferences of customers and employees by adopting innovative digital payments tech may gain an edge and, as PYMNTS puts it, “thrive in an increasingly competitive landscape.”