Globally, the retail payment landscape is heating up. E-commerce 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 segmentโtravelโis 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, theyโre passing up enormous revenue and cost-reduction 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,ย Phocuswrightย 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 payments and performed comprehensive desk research to understand how travel retailers regard AFPs. This exclusive report, produced by PhocusWire in association withย UATP, shares some of the findings to shed light on a growing travel industry payment gap.
The report is available below or to downloadย here.
