Breaking through the complexity of travel paymentsWhen you’re a global business with customers spread across continents, it is critical to have a unified payment gateway that enables you to work across global markets.
by Max Wiese, Head of Product, AeroGuest
The past year has brought many challenges, and COVID-related prevention measures have hit the travel sector particularly hard. With the rollout of the vaccine, we are focused on the recovery of the global travel industry. As a digital travel platform that services hospitality businesses and their customers, we’re always thinking globally.
We provide a digital guest service that works with hotels and hostels, enabling guests to choose a room, check in and out, and even pay – right on their mobile phones. At the guest’s convenience, they can also use their phone as a digital key. Our mission is to make this process as seamless and convenient as possible, but payments represent a complex piece of the puzzle. Having the right payment infrastructure is more important than ever. This means streamlined, efficient payments and higher conversion rates, which ultimately benefit businesses and their customers.
The complexity of travel payments
The travel industry is truly international, connecting travellers with hotels, hostels, sites and attractions all over the world. For merchants, this means simultaneously connecting with customers, payment providers such as Visa and Mastercard, and WeChat in China or Yandex in Russia. In the Netherlands, for example, 60% of Dutch eCommerce transactions were paid with iDEAL payments. The wide range of vendors and hotels also means that the industry is very complicated, as not everyone supports the same payment solution or functionality. Travel merchants must always be prepared to engage with multiple payment providers and acquiring banks. There are also many pain points for merchants and customers alike, with high fees and payment processes that compromise efficiency.
Putting merchants first
It goes without saying that the payment industry is critical to our business and the travel sector. Making sure that you have the right payment infrastructure in place while growing and servicing clients across their respective, domestic markets is critical, especially for securing efficient payments and competitive rates. This is when having the ability to move volume between acquiring banks is important. This empowers you as the merchant to seek out the acquiring bank that suits your needs and the needs of your customers.
The rise of payment orchestration platforms like APEXX Global means that merchants can select the right payment providers and acquirers for their needs. Merchants can connect to multiple acquirers through one integration, easing the process of fund collection. For example, the AeroGuest platform enables hotels to benefit from existing and new revenue streams, such as deposits, Choose Room and Upgrade Room features. This is facilitated by the range of payment routes provided by APEXX. This means more flexibility, more competitive conversion rates and ultimately, a fairer and more equitable landscape for travel merchants. This additional choice also creates a great opportunity for alternative payments methods, including Buy Now Pay Later (BNPL) and Open Banking Solutions, among others. Increasing the number of acquiring banks that you work with also helps to reduce risk and means that merchants can choose the payment methods that suit their specific needs, rather than taking a one-size-fits-all approach. By using a payment orchestration platform, such as APEXX Global, travel merchants are able to work with multiple acquirers through a streamlined and simplified process, meaning you don’t need to integrate your system with each acquiring bank separately – saving time and money! This is essential to us as a fast-growing and disruptive business.
When you’re a global business with customers spread across continents, it is critical to have a unified payment gateway that enables you to work across global markets. In a world of complex travel payments, flexibility, choice, and a merchant- first approach are king.