ppro_amadeus-2019年旅游支付研究报告（英文）-2019.8-37页_28mb

Travel Payments Guide 2019 Summary

Core Content

This guide provides an overview of the current and future trends in the travel payments industry, focusing on the challenges and opportunities that arise from evolving customer expectations, regulatory changes, and the rise of new payment technologies. It outlines strategies for travel merchants to adapt to these changes and highlights key markets and payment methods across the globe.

Main Trends

1. Easy Does It: Frictionless Payments

• A payment is an experience, not just a transaction.
• Customers prefer fast, seamless, and convenient payment methods.
• Friction in the payment process can lead to abandoned transactions, errors, and increased costs.
• Travel merchants are moving toward an omni-channel, consistent payments experience.
• New technologies like tokenization, contactless payments, real-time fraud detection, and biometric authentication are being used to reduce friction while ensuring security.
• The challenge is to balance cost, convenience, security, and compliance across various payment channels.

2. Knowing the Customer: PSD2 and Authentication

• PSD2 introduces Strong Customer Authentication (SCA), requiring at least two of three factors (something the user knows, has, or is).
• This is expected to come into effect on 14 September 2019 in the European Economic Area (EEA).
• The main challenge is implementing SCA across indirect distribution flows, such as those involving travel agents and GDS systems.
• The secure corporate payment exemption is a key solution for B2B payments, allowing the use of lodge cards and virtual cards.
• Travel providers must ensure compliance with SCA while maintaining a smooth customer experience.

3. Back to the Future: The Open Banking Revolution

• Open banking regulations in the UK and Europe are expanding the range of payment methods.
• These regulations enable third-party providers to access customer data, leading to account-based "push" payments.
• Push payments are expected to become more popular due to lower costs and greater control for customers.
• Card-based payments still provide unique benefits such as purchase protection, and are likely to remain relevant.
• The travel industry is expected to see a shift in payment methods as open banking gains traction.

4. A New Contender: The Rise of Virtual Cards

• Virtual cards are becoming a key payment method for B2B transactions in the travel industry.
• They offer simplified reconciliation, fraud protection, and reduced costs for both agencies and airlines.
• A pilot scheme in Asia, called Partner Pay, has shown significant cost savings (up to 70%) for airlines and agencies.
• The pilot demonstrates how virtual cards can improve operational efficiency and business partnerships.

5. Looking for Growth: The Case for APAC

• The Asia-Pacific region is expected to see significant growth in travel e-commerce.
• China is a key market with high e-commerce growth (19% YoY) and a strong cashless economy driven by Alipay and WeChat Pay.
• India has a large population and growing middle class, making it a promising market for outbound travel.
• Japan remains a major contributor to travel e-commerce, with a high proportion of mobile payments.
• Mobile payments are growing rapidly in APAC, with instant payment solutions becoming more common.
• The center of gravity in the payments industry is expected to shift east as the region continues to evolve.

Key Markets Overview

Asia-Pacific

• Australia: $26.5bn in B2C e-commerce, 21% on travel, 35% on mobile, average spend $1738.
• Hong Kong: $14bn in B2C e-commerce, 22% on travel, 48% on mobile, average spend $2959.
• India: $34bn in B2C e-commerce, 16% on travel, 41% on mobile, average spend $339.
• Indonesia: $11bn in B2C e-commerce, 16% on travel, 46% on mobile, average spend $278.
• Japan: $5bn in B2C e-commerce, 22% on travel, 58% on mobile, average spend $1526.
• Malaysia: $4bn in B2C e-commerce, 22% on travel, 46% on mobile, average spend $253.
• New Zealand: $4bn in B2C e-commerce, 29% on travel, 33% on mobile, average spend $1854.
• Singapore: $5bn in B2C e-commerce, 31% on travel, 42% on mobile, average spend $1470.
• South Korea: $46.7bn in B2C e-commerce, 16.5% on travel, 61% on mobile.

Key Payment Methods

• China: Alipay, WeChat Pay.
• India: Cash, Wallets (e.g., inodast dompetku, TELOCOMS CASH).
• Japan: Digital Garage, Octopus.
• Malaysia: CIMB Clicks, mol Wallet Cash On The Go, RHBnou.
• Singapore: eNETS, CIMB Clicks.
• Australia: POLi.
• Hong Kong: payHK, Octopus, WeChat Pay.
• New Zealand: onlineeftpos.
• South Korea: Not explicitly listed, but likely includes major card schemes and digital wallets.

Best Practice: Payment Partnership

• Thai Airways and Select Travel have implemented a virtual card solution that improves efficiency and reduces costs by up to 70%.
• The solution uses Thai Airways branded virtual Mastercards, which provide fraud protection, reconciliation benefits, and revenue streams for agencies.
• This partnership model is seen as a promising approach for the travel industry to embrace new technologies while maintaining traditional payment methods.

Conclusion

The travel payments landscape is complex and evolving, driven by customer preferences, regulatory changes, and technological advancements. Travel merchants must adapt quickly to meet the demands of a global, digital-first market while ensuring security, compliance, and cost-effectiveness. The Asia-Pacific region is set to dominate future growth, with mobile and digital payments playing a central role. Virtual cards and open banking are key innovations that could reshape the industry, offering cost savings, fraud protection, and improved customer experiences.