SINGAPORE, 3 May 2016: Airlines and hospitality companies have an opportunity to grow their market share in the mobile payments space, according to the latest Mobile Payments Index from payments technology provider Adyen.
In the first quarter assessment, airlines and hospitality sectors represented a 15.5% market share compared to the overall global browser-based share of 32%.
The findings highlight significant growth opportunities for travel businesses willing to invest in the mobile payment option for customers.
In addition, the Index noted that, in terms of Average Transaction Value (ATV) the iPad is the most popular device, leading the way with just over USD365 for accommodation services and USD325 for airlines.
Following the iPad were Android tablets, which recorded USD290 and USD266 respectively, suggesting that consumers still prefer larger screens when making higher amount purchases.
According to Adyen MPI data, accommodation services are seeing 17% of browser-based transactions on mobile devices.
Many of the fastest-growing accommodation services, such as Booking.com or HotelTonight, are capturing market share through in-app and optimised mobile browser-based experience.
“Mobile devices are inherently personal and it’s important for the content of the apps to react to the needs of the consumer in real time,” said, CEO, HotelTonight Sam Shank. “The hotel deals we present to a booker vary depending on where that booker is located and other factors, so we can present more relevant results, and increase conversion.”
The research shows 13% of transactions for airlines are currently made from mobile devices, leaving considerable space for growth.
However, airlines that invest in mobile payment capabilities are enjoying a far greater share of payments on a mobile device that the average 13%.
As an example, European airline Transavia is seeing its mobile payment share rise to 20%, 65% higher than the airline average, after investing in a mobile-optimised experience.
As passengers become increasingly accustomed to interacting with airlines on their phones, and airlines offer services such as smartphone-based check-in and customer service on social media, the opportunity is ripe for innovative players to move to the next level and increase their mobile payment share, according to Adyen
“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,” said Adyen COO Roelant Prins. “Beyond in-app, travel merchants that invest in optimized experiences for web browsers across key device types are already seeing their mobile transaction volume increase significantly.”
Adyen Mobile Payment Index tracks the rapid evolution of mobile as a payment channel, providing insight into mobile payment trends for different devices and market sectors, across selected geographies and payment methods.
The Mobile Payments Index is based on Adyen’s global mobile web payment transaction data, and does not track in-app mobile payments.
Addressing concerns over fraud and payment security Adyen noted fraud was a risk with any payment type.
“The risk can be mitigated with a solution such as Adyen RevenueProtect, which uses data and machine learning to identify and track fraudulent behaviour across cards, device types and different logins,” said Adyen Asia Pacific president Warren Hayashi. “Airlines can block fraudsters, while ensuring a seamless experience for genuine passengers.”