SINGAPORE, 19 July 2019: There are now more than 300 different channels to pay for travel worldwide and to cut through the clutter Amadeus and PPRO commissioned The Travel Payments Guide to show us the way.
It charts the rise of alternative payment methods and helps travel merchants understand which methods are most popular in their key international markets.
According to the analysis, travellers now choose alternative ways to pay for travel, such as e-Wallets and bank transfers, more often than cards and cash combined.
Payment methods by region (full-year 2017 data)
|Market||Alternative payments share (e-Wallet, bank transfer, other)||Cards & cash|
NB: Regional averages based on a subset of markets in each region
The world’s largest digital travel markets (full-year 2017 data)
|Market||Total e-Commerce spend ($ Billions)||Total travel e-Commerce spend ($ Billions)||Travel’s share of e-Commerce||Mobile’s share of e-Commerce|
Payment methods across the world’s largest e-Commerce markets (full-year 2017 data)
This growth is occurring across the world with e-Wallets now twice as popular as cards in China, accounting for 49% of the country’s digital travel spend.
In the US, e-Wallets may replace cards as the most popular way to pay by 2025, having gained an additional 4% share of the market in the last 12 months.
According to the report, alternative ways to pay for travel, such as e-Wallets and bank transfers, take the lead in Asia, with 58% of travellers choosing these modes of payment over cards and cash combined (42%). Europe follows closely behind with 53% of travellers using alternative payment methods, followed by Africa (49%), North America and the Middle East (both at 38%), and LATAM (19%).
China has the largest B2C e-commerce volume of USD1,030 billion
Singapore leads the way in terms of e-commerce spent on travel (31%)
Hong Kong has the highest average e-commerce spend per capita at US$2,959 – more than a USD1,000 than second-place China at USD1,935
Cash remains king in the Philippines with 47% preferring to transact this method. Philippines is also the only country in APAC where cash is the dominant form for payment.
Singaporeans and South Koreans love their credit cards with both countries ranked top (74%) when it comes to paying with cards.
Malaysia is the only country in APAC where bank transfer is their preferred choice of payment at 47%. Such a figure is also the highest across the region.
When it comes to e-commerce spent on mobile, South Korea is ranked top at 61% followed by Japan at 58%
The report also provides country statistics on the following APAC countries: Australia; China; Hong Kong; India; Indonesia; Japan; Malaysia; New Zealand; Philippines; Singapore; South Korea; Taiwan; Thailand and Vietnam.
The report also marks a new partnership between Amadeus and PPRO, a leading cross-border payment specialist. PPRO’s integration with Amadeus’ Payment Platform means travel companies can now accept the broadest range of alternative payment methods. It includes real-time bank transfers, e-Wallets and direct debit methods.
The full report is available for download here: https://campaigns.amadeus.com/travel-payments-guide-2019