The travel industry is now a high-volume, global business. It means that clients need flexible payment options with different currencies. The latest fintech innovations have become essential in creating secure transactions without delays, fraud, or high costs spoiling the customer payment experience.
Why the travel industry needs fintech solutions
The digital era has brought a variety of challenges for the travel sector. These include the following issues that each require new fintech travel solutions.
The industry continues to grow
With a high volume of global transactions, this is a fast-moving industry. Travelers want to book flights and hotels 24/7 from every corner of the globe. The right travel payment solutions are needed for this to work.
Multi-currency payments provide another challenge
With customers in the global market looking to pay for travel services, companies need to accept a wide variety of currencies. It helps travel companies find new revenue streams and maintain operational efficiency.
Customer refunds & cancellations
Booking solutions are needed for the problem of people booking flights or hotels and then cancelling. It shouldn’t add to operational costs or cause problems for the existing revenue streams.
Chargeback risks
The risk of a card transaction leading to a chargeback is another worry. It is one of the most significant pain points in the booking process, as it can cost time and money. It is one of the main areas where fintech for tourism focuses on.
Fraud prevention
The latest fintech solutions for the travel industry need to take into account the risk of fraud. Flight and other travel services are among the high-risk categories in this respect. Find out what money laundering is and how its risks are handled by Genome.
Slow settlement times when traditional banking services are used
Fintech payment options for travel companies need to account for the time and processing costs that have traditionally made banking difficult for this sector. Payments for travel companies need to be fast and painless.
Complex supplier payouts
The travel fintech experience also has to deal effectively with the complex way that companies need to pay suppliers like airlines.
What fintech brings to the travel sector
Travel companies still need to have operational efficiency and keep their revenue streams flowing. So, how do fintechs use financial technology to do this? The following are a few of the top travel industry fintech innovations.
Instant and low-cost international payments. It is a crucial technology aspect, as travel companies need to send and receive money across a wider range of countries than many other businesses.
Multi-currency wallets & transfers. These companies need fintech products suitable for consumers who use multiple currencies. It means that purchases can be made in the currency that suits each customer, without affecting the revenue or data.
Real-time FX rates. It is another important aspect when people spend money on travel offerings. You need to be able to switch between currencies in your digital wallets without incurring excessive fees.
Automated reconciliation. It is one of the key financial services for travel companies. It allows companies to save time, which is important given the large volume of data and transactions they handle.
Fraud prevention & chargeback reduction. It is an area where access to the latest tools and systems helps avoid costs and delays. Travelers may genuinely cancel their flights, but you need to be wary of the risk of fraudulent chargebacks.
Secure online payments (SCA, 3DS2). It is one of the simplest ways to offer travelers a secure online payment service for their purchases.
Easier onboarding for travel merchants. Easy access to online banking is another major benefit. It can help the growth of travel companies as they accept payment from consumers without any fuss.
Seamless checkout & Pay by Bank options. Letting customers pay seamlessly is one of the biggest advances in travel fintech. Pay by Bank is easy to implement and lets travelers use open banking for a smooth process.
Improved cash flow for agencies and partners. Most importantly, the fintech approach provides a huge opportunity for a customer-centric process that also helps the company’s cash flow and adds additional revenue streams.
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Key fintech trends shaping the travel industry
To understand the path forward for fintech in the travel industry, we need to examine the key trends currently shaping it.
Open Banking for travel payments
It is one of the processes offered by leading fintech companies, enabling Pay by Bank. Allowing travelers to connect to their main bank account provides faster checkout, higher conversion rates, and fewer failed payments. What is Pay by Bank? It is a way to pay directly from your account using open banking data.
Multi-currency business accounts
The ability to hold currencies such as EUR, USD, GBP, etc., like Genome offers, in a business account is a key point. It has to be done with new solutions without FX fees to make it a smooth process.
Instant bank payments
Instant bank payments are also provided by fintech companies to manage payments. It works well as a fast way of paying for urgent bookings and last-minute travel payments.
Digital KYC/KYB for travel platforms
Setting up mobile wallets is easier than you might think. Digital know your customer (KYC) and know your business (KYB) solutions let you register and verify your data quickly, enabling faster onboarding for suppliers, agents, and merchants.
Embedded finance in travel apps
It is a way to provide customers with the most seamless way of paying for a travel experience. In-app payments and wallet transfers are easily carried out. Embedded finance also gives the chance to offer loyalty rewards and credits.
Automated payouts & supplier settlements
It is a smart approach to paying hotels, guides, drivers, and airlines instantly. The travel experience is a lot smoother with these fast settlement options.
How fintech improves travel payments
When looking at the new era of travel payments and ahead to the future, we can see that there are some vital areas that have helped boost this market. Here are some examples of how fintech helps the travel industry right now.
Speed. With instant bank transfers, it’s possible to give instant booking confirmations. It has increased the speed and efficiency of the market.
Cost. With lower foreign exchange and transaction fees than traditional banks, it’s a low-cost way to access global markets.
Security. The way that SCA, fraud scoring, and anti-chargeback tools are all added gives a high level of security for businesses and consumers alike.
Convenience. It is one of the most convenient ways to spend on personal and corporate travel. Multiple payment options, including Pay by Bank, cards, and A2A, ensure that consumers can choose what suits them best.
Automation. The likes of batch payments, API integrations, and automatic reconciliation all help make the process faster. It is good news for companies with growth plans.
Use cases of fintech in the travel industry
The travel industry covers many areas. The following are some of the different ways that this technology can be used in a business account or merchant account for the travel industry.
Travel agencies & OTAs
These businesses accept global payments from consumers. It also lets them automate invoices and streamline processes without having to manage a growing team.
Tour operators
These companies can use the current fintech technology for a variety of reasons. The most common is the need to pay partners, drivers, and guides instantly.
Airlines & hotels
These are generally huge businesses that handle the key aspects of each person’s journey. They need to be able to accept cross-border payments smoothly.
Travel marketplaces
These sites need fast onboarding and automated payouts. It allows newcomers to start using the marketplace swiftly and with no fuss.
Travel startups
These companies need to obtain digital-first operations that help them grow. The ability to access low-cost banking is another key feature for this market.
How Genome supports the travel industry
Helping travelers plan and pay for their journey is easier when you use Genome’s services.
Genome’s instant bank payments let travel merchants accept Pay by Bank transfers that are confirmed in seconds, 24/7, via Open Banking and SEPA Instant, so bookings and add-ons can be paid quickly without card network delays. By moving funds directly from the customer’s bank account to the merchant, travel businesses can improve cash flow, reduce fees, and simplify reconciliation with fast, traceable payments to almost any SEPA-reachable bank account.
We offer a multi-currency account that helps you deal with customers and suppliers across the planet.
With dedicated IBANs for businesses, transfers are easier to handle. SEPA transfers can be requested directly to your account. SEPA Instant is an option for urgent bookings. Batch payouts for suppliers provide yet another useful tool for smooth business operations.
Low-cost international transfers make it easier to pay and receive payments no matter where you do business. With hosted payment pages, travel firms can accept online payments without having to create their own secure payment forms.
We make it simple for you to accept Pay by Bank payments. The Open Banking method is easy to implement and provides a seamless payment process. As a strong fintech solution for travel businesses, we make sure that these services are backed by solid fraud protection.
With fast digital onboarding and an efficient KYB process, you can start using our digital services without losing any time.
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How to start using fintech tools for your travel business
Start using the latest technology to help you search for new revenue streams in the travel space. Follow these steps to get started.
Open a Genome business account online.
Verify the company with the short KYB process.
Set up multi-currency wallets for the currencies you plan to use.
Activate payment tools to stay in control of your finances.
Apply for a merchant account.
Start accepting and sending global payments easier than ever before.
