Travel made up 15.5% of mobile transactions on global payments network Adyen in the first quarter of the year, according to a new report from the company. Compared to the global share of 32%, the Netherlands-based company suggests there are big opportunities for travel companies that invest in better mobile shopping and payments experiences. Indeed, the company says that early movers in the travel space are already “reaping rewards”.
The iPad and desktop still lead the way in terms of average transaction value (AVT) with both types of device averaging €300 per transaction for accommodation booking and €250 for airlines. Those come in well above the average range of €110 – €120 across all industries.
While mobile only makes up 17% of transactions made to accommodation services during the quarter, Adyen points to the growth of mobile-first companies like HotelTonight that are snagging market share from incumbents by offering a slick mobile user experience. HotelTonight for example, tailors deals based on where the customer is located to make sure search results are relevant and personalised. The report suggests that hotel chains, which are feeling the burn from online alternatives booking sites, could differentiate by offering a great mobile experience.
Meanwhile, Adyen says 13% of transactions for airlines are currently happening on mobile. However (and perhaps unsurprisingly) those airlines that are investing in their mobile offerings are seeing higher than average activity when it comes to mobile payments. European airline Transavia, for example, has a share of mobile payments 65% higher than the average. With options to branch into other mobile services such as smartphone check-in and other customer services, the opportunities for the travel sector to take a bigger share of mobile payments.
“We are moving to a future where many loyal travel industry customers will make their entire journey in-app, from initial booking to final checkout, with payments as a key step in that journey,” says Roelant Prins, CCO at Adyen. “Beyond in-app, travel merchants that invest in optimised experiences for web browsers across key device types are already seeing their mobile transaction volume increase significantly.”
The findings come as part of Ayden’s first travel industry-focused edition of its quarterly Mobile Payments Index, which it has been running since 2013. The firm is one of Europe’s most highly-valued private fintech companies, with customers including Facebook, Uber, Airbnb, Netflix, Spotify and Booking.com. Valued at €2.3bn, the firm is now processing €60bn in payments globally on its platform each year.
Starling Bank has become the first digital-only bank to join the Faster Payments Scheme as a direct participant. Traditionally, new bank entrants join the scheme via a sponsor, or another bank.
Fresh off securing $63m in funding and appointing a new CFO, the Stockholm-based provider of contactless and mobile card readers has partnered with China's payments giant, UnionPay, on increasing card acceptance for European SMEs.
Coinable became the latest cryptocurrency exchange company to receive a licence that allows it to operate in the state of New York.