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Globally, the retail payment landscape is heating up. Ecommerce and high consumer demand for frictionless buying experiences are boosting both consumer adoption and retailer acceptance of Buy Now Pay Later (BNPL) plans, digital wallets, and other types of alternative forms of payment (AFPs). Innovation in this space is likewise accelerating.
One market segment — travel — is behind the adoption curve in many respects. While AFP super adopters in some parts of the world point the way to where payment is headed, retailers elsewhere remain wedded to traditional forms of payment (FOPs) like credit and debit cards. In doing so, they’re passing up enormous revenue and costreduction opportunities.
Travel researchers explain the general lag in AFP acceptance as typical of a complex, highly regulated (and thus) slow-moving industry. A comprehensive overhaul of retail payment strategy is one way out of the quagmire that inhibits the sector. Contextualizing the costs and implementing all-in-one payment platforms are other readily available solutions.
To understand global travel payment trends, Phocuswright conducted a quantitative survey of travel suppliers, traditional and online intermediaries and technology and payment solution providers. The company also conducted thirty in-depth interviews with key players in travel and payment and performed comprehensive desk research to understand how travel retailers regard AFPs. The findings help shed light on a growing travel industry payment gap.
Globally, the retail payment landscape is heating up. Ecommerce and high consumer demand for frictionless buying experiences are boosting both consumer adoption and retailer acceptance of Buy Now Pay Later (BNPL) plans, digital wallets, and other types of alternative forms of payment (AFPs). Innovation in this space is likewise accelerating.
One market segment — travel — is behind the adoption curve in many respects. While AFP super adopters in some parts of the world point the way to where payment is headed, retailers elsewhere remain wedded to traditional forms of payment (FOPs) like credit and debit cards. In doing so, they’re passing up enormous revenue and costreduction opportunities.
Travel researchers explain the general lag in AFP acceptance as typical of a complex, highly regulated (and thus) slow-moving industry. A comprehensive overhaul of retail payment strategy is one way out of the quagmire that inhibits the sector. Contextualizing the costs and implementing all-in-one payment platforms are other readily available solutions.
To understand global travel payment trends, Phocuswright conducted a quantitative survey of travel suppliers, traditional and online intermediaries and technology and payment solution providers. The company also conducted thirty in-depth interviews with key players in travel and payment and performed comprehensive desk research to understand how travel retailers regard AFPs. The findings help shed light on a growing travel industry payment gap.
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