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The way hotels operate has changed in recent years – with technology driving significant advances in the sector. The contactless guest journey is now at the heart of what many hotels offer and features such as online and self-service check-in/out are taking the lead.
While software solutions play a central role in bringing convenience and simplicity to the guest experience, hoteliers can concentrate on having higher-value interactions with their guests.
Set against this backdrop, the widespread adoption of contactless payments provides the latest opportunity for hotels to embrace technology and respond positively to the demands of heavy digital users.
Global contactless card purchases are expected to exceed $10 trillion by 2027. Over the next three years, contactless payments are expected to grow by 221% – yet contactless cards will increase by 119% during that same period [Source]. Most of the growth in contactless payments will come from the use of mobile wallet apps such as Apple Pay, Google Pay and PayPal.
The Rise of Mobile Wallet Payments For Hotels
The modern payments landscape has changed – offering exciting opportunities for hotels to provide more choices for consumers by integrating mobile wallet payments into their guest journey. Already, more than 500 million people worldwide use Apple Pay, while PayPal has more than 400 million active users and Google Pay around 150 million.
Mobile phones are central to our use of technology and – crucially for hotel operators – how we browse and book accommodation. Apple Pay and Google Pay are particularly popular with heavy digital users due to the convenience of being able to pay with just a couple of clicks on a smartphone rather than going through the hassle of inputting and then authorising a credit card payment.
OTAs already accept mobile payments and in order to remain competitive, hotels need to do the same and integrate them into their guest-facing booking experiences. It is simply not feasible to continue running booking engines that do not accept what is fast becoming the most popular form of secure payment in the world.
Hotels Will Drive More Direct Bookings With Wallet Mobile Payments
The growing popularity of mobile payment apps was instrumental in P3’s decision to develop Apple Pay, Google Pay and PayPal mobile payment facilities for our online booking engine and check-in/out products.
Our Apple Pay, Google Pay and PayPal mobile payment solution was developed to help your hotel drive direct booking conversion rates by making it quicker and more convenient for bookers to pay, while also providing assurance around payment security for guests and hoteliers, and maintaining hotel brand presence throughout the guest booking journey.
Payments are direct between the guest’s payment app and the hotel, there are no intermediaries and can be integrated with all major payment providers. Mobile payment apps also provide benefits for conversion rates due to their convenience. Instead of searching for a credit card and then being directed offsite to a banking app for approval, the purchase is authorised with a passcode or a face or fingerprint scan on a mobile phone.
Mobile payment options are expected to become increasingly popular with direct bookings for advance purchase stays. Guests who opt to pay later or book through an OTA will need to secure their room with a credit or debit card. However, they will still be able to choose to pay their bill using Apple Pay, Google Pay or PayPal by clicking on the link in the online check-in and checkout emails they receive from the hotel. The choice is always there – just at a later stage.
Mobile wallet payment apps account for around 45% of all e-commerce transactions worldwide– and that figure is increasing. They are fast and easy to use, and they will have a positive impact on your hotel’s conversion rates. They are also what younger consumers demand and hotels that don’t offer this choice run the risk of ignoring a growing section of their potential market.
* Apple Pay, Google Pay and PayPal facilities are part of P3’s seamless online booking experience for hotels operating Oracle Hospitality’s OPERA. They are delivered through the Adyen payment gateway, which can be added as a plug-in to other payment platforms, including iDeal and Sofort.
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