Navigating Payment Challenges in Travel: The Road Ahead
The booking and payments process in travel is often too long, confusing, or simply not mobile-optimised, reveals payments specialist FinMont.
It has released results from its recent survey of European travellers which found that nearly 10% of travellers under 34 abandon bookings when mobile wallets like Apple Pay or Google Pay aren’t available.
The share of travel transactions using mobile wallets jumped by 30% in 2024, with mobile bookings accounting for 37% of total sales.
It’s thought this dropout rate represents a significant loss in revenue and points to an urgent need for modernisation.
Mobile wallets are now mainstream in the travel industry, with 74% of travellers relying on digital wallets during trips, rising to 82% among millennials and affluent travellers.
While other industries have embraced fast, secure checkout systems, many travel merchants still rely on legacy infrastructure and the result is higher cart abandonment rates, increased friction at checkout, and ultimately, a less satisfying customer experience.
Consumers today aren’t just looking for convenience; they want a seamless experience they can control every aspect of, including how and when they pay.
The rise of Buy Now, Pay Later (BNPL) solutions is an example of consumer expectations when it comes to flexible payments.
FinMont’s research shows that over 10% of travellers would increase their spending on trips if offered payment instalments through providers like Klarna.
It found that loyalty rewards also play an increasingly important role, as roughly 14% of travellers consistently rebook with providers offering appealing rewards, suggesting that payments, when tied to benefits, can also influence long-term customer retention.
The orchestration firm argues that it’s a core part of the traveller experience and systems that serve them must evolve to match consumers’ demand.
Suby Valluri, CEO of FinMont, said: “The payment experience is no longer just a backend function; it’s central to how customers perceive and engage with travel brands. At FinMont, we see payment orchestration not just as a technical solution, but as a strategic advantage.
“By simplifying complexity, reducing costs, and enabling flexibility, we’re helping the travel industry deliver better experiences and unlock new revenue opportunities in a highly competitive market.”
For them, the future is obvious – for travel companies, they must offer seamless, flexible, and transparent payment options and invest in smarter infrastructure.
