The complete guide to travel payments | Insights from industry experts

 

This guide covers the key challenges and opportunities in travel payments, including B2B virtual card adoption, alternative payment methods, fraud prevention, regulatory changes, forex risk management, tourist taxes, AI-driven booking via the Model Context Protocol (MCP), and sustainability initiatives.

To offer our readers a comprehensive overview of the main pain points in the travel industry, we brought together insights from IATA, ECTAA, Up in the Air, Edgar Dunn & Company, Alternative Airlines, GetYourGuide, Avianca, airBaltic, Trip.com Group, JCB International, and more.

Whether you're a travel payment professional or payment service provider, this resource provides insights from the front line of travel payments.

What are the key travel payment trends in 2026?

As consumers’ payment expectations shifted in the last couple of years, the travel industry has responded by adopting alternative payment methods that are in line with customer demand. The following contributions showcase examples of how travel players are catering to the payment needs of today’s travellers.

 

How will challenges, trends, and regulations shape travel payments in 2026?

For this expert roundtable, The Paypers invited Eric Drésin, Secretary General of ECTAA, Thierry Stucker, IATA’s Director for Industry Payment Programmes, Paul van Alfen, Travel Payments Strategist at Up in the Air, Sam Argyle, Managing Director of Alternative Airlines, Jacqueline Ulrich, SVP Global Travel Partners & Product Strategy at Nuvei, and Greg Toussaint, Director at Edgar, Dunn & Company to discuss the trends, challenges, and regulatory shifts impacting travel payments in 2026.

Key takeaways:

• Card payment message standards need to evolve
• The differences in innovation between B2B and B2C travel payments are significant
• Agentic commerce will become prevalent, requiring new payment journeys
• PSD3's Commercial Agent Exclusion could force travel agencies to seek payment institution licensure

Read the full article here.

How are virtual cards transforming B2B travel payments?

Charlotte Piron-Seth and Greg Toussaint of Edgar, Dunn & Company (EDC) discuss the rise of virtual cards and their role in modernising the travel industry’s payment infrastructure.

Key takeaways:

• Virtual cards represented 40% of OTA payments to hotels by 2022
• B2B will represent 83% of the global virtual cards market by 2029
• 74% of airlines cite improved cash flow from shorter settlement cycles as the main benefit of accepting virtual cards
• The piece includes a 5-step roadmap for travel players 

Read the full article here.

What is MCP and how will it change travel booking?

Hospitality expert Ira Vouk breaks down the Model Context Protocol (MCP), its impact on travel payments, the challenges for hotels, OTAs, and airlines, and the future of AI-driven booking.

Key takeaways:

• MCP is the ‘USB-C for AI agents’, one integration, many AI platforms
• AI has become the new travel agent
• Hotels, airlines, and OTAs face different risks and opportunities
• By end of 2026 the first wave of direct MCP bookings will be live
• Data quality determines whether AI exposure helps or hurts

Read the full interview here.

What do the ChatGPT integrations with Booking.com and Expedia mean for OTAs, airlines, and hotels?

Diana Vorniceanu, Senior Editor at The Paypers, analyses the October 2025 ChatGPT integrations by Booking.com and Expedia, and discusses whether AI-assisted travel booking addresses genuine customer needs or simply creates new discovery channels. 

Key takeaways:

• ChatGPT has reached 800 million weekly users
• There is a significant difference between consumers using AI for discovery vs actual bookings
• Infrastructure challenges vary by industry player
• Monetisation and margin compression concerns arise

Read the full article here.

What caused airline bankruptcies in 2025?

Diana Vorniceanu, Senior Editor at The Paypers, takes a close look at the airline bankruptcies that shook the travel industry in 2025.

Key takeaways:

• An analysis of the bankruptcies of Silver Airways, Spirit Airlines, Air Belgium, Russian airlines, Azul Linhas Aéreas Brasileiras, Voepass, and GOL
• The editorial features commentary from industry experts on the effects of Air Belgium's bankruptcy on European consumers and tour operators, as well as the overall situation in LATAM, where several airlines have faced bankruptcies in recent years

Read the full analysis here. 

How are Asian travellers' payment preferences evolving in Europe?

Ray Shinzawa, Managing Director at JCB International (Europe), examines the changing travel volumes from Asia to Europe and the evolving payment habits.

Key takeaways:

• Asian outbound travel to Europe hasn't returned to pre-pandemic levels
• Travellers expect payment technologies common at home but lacking in Europe
• Scenarios where Asian travellers prefer cards over APMs
• Payment gaps European merchants should address

Read the full interview here.

How can airlines optimise payment acceptance performance?

Julia Callejo, Manager, Paris at Edgar, Dunn & Company, highlights how to control the cost of acceptance while optimising payment coverage for airlines.

Key takeaways:

• The evolution of airlines’ payment acceptance 
• Pain points related to payment acceptance
• Learnings from actual airline case studies 

Read the analysis here.

How is fintech reshaping travel payments in 2025?

Iulia Mușat, News Editor at The Paypers, takes a closer look at how fintech companies are partnering with travel industry players to drive the future of travel payments.

Key takeaways:

• The state of travel in 2025: key stats and the rapid growth of the industry
• How fintech is serving the shifting travel behaviours and payment needs
• The rise of crypto in the travel industry
• Tackling fraud and chargeback challenges in travel
• Emerging trends beyond 2025

Read the full contribution here.

How are cryptocurrency and BNPL changing travel bookings?

Sam Argyle, Managing Director at Alternative Airlines, discusses the reasons behind the adoption of cryptocurrency as a payment method for travel bookings. He also covers how BNPL will likely evolve within the travel sector over the next 5-10 years and what role regulation will play in that evolution.

Key takeaways:

• The customer profile of travellers opting for crypto payments 
• 30% of American travellers prefer paying for bookings with cryptocurrencies
• BNPL will continue to evolve in the travel payments space
• Traveller behaviour has become more focused on eco-friendly and sustainable travel options

Read the full interview here.

How are customer loyalty, gamification, and Web3 reshaping travel?

Arturs Garais, Web3 Senior Project Manager at airBaltic, touches on the current economic climate impacting the travel industry, expands on concepts like customer loyalty and gamification, and shares details about the impact of Web3 and blockchain technology developments on players and consumers in the travel industry. 

Key takeaways:

• Most leading airlines also reporting weaker revenue results in Q2-Q3 2024
• Tiered loyalty programmes instil a sense of progression and achievement among members
• Gamification plays a role in boosting customer redemption rates
• The shift towards Web3 technologies and blockchain in travel is clear

Read the full interview here.

How are travel companies preventing fraud?

Fraud is a significant pain point in the travel industry, with a recent survey revealing that 53% of travel merchants reported fraud costs of more than USD 10 million in 2024. In the following interviews, we explore fraud prevention tactics and fraud trends in the sector.

To challenge or not to challenge: how should airlines approach 3DS?

Javier Gutierrez Rueda, Director Corporate Development and Head of Payments and Fraud Prevention at Avianca Airlines, takes a close look at current SCA challenges and suggests ways to overcome them.

Key takeaways:

• The global cost of cybercrime is projected to reach USD 10.5 trillion annually by 2025
• Cumulative losses from online payment fraud alone projected to exceed USD 363 billion between 2023 and 2028
• Travel merchants are facing 36% of the global suspected fraud attempts
• Three alternatives to improve conversion and increase the number of satisfied customers

Read the full editorial here.

What are the latest fraud prevention trends for travel marketplaces?

Gianmichele Zappia, Head of Risk and Fraud at GetYourGuide, discusses the latest trends in fraud prevention in the travel industry, the emerging patterns of fraudulent activities, explains the role of holistic risk mapping, and shares best practices in balancing fraud prevention measures and a convenient checkout experience.

Key takeaways:

• Emerging patterns of fraudulent activities targeting travel marketplaces
• The role of holistic risk mapping in combating travel fraud
• Best practices in balancing fraud prevention measures and a convenient checkout experience
• How travel merchants can stay ahead of evolving fraud tactics

Read the full interview here.

How does loyalty fraud impact the airline industry?

Michael Smith, board advisor at Airline Information, examines the intricacies of loyalty fraud in the airline industry and pinpoints best practices that loyalty programme managers can implement.

Key takeaways:

• The specificities of loyalty fraud in the airline sector
• How fraudsters exploit airline loyalty programmes
• The impact of ATO fraud on airlines
• Best practices that loyalty programme managers can implement to mitigate risks

Read the full interview here.

What are the regulatory and tax impacts on travel payments?

Regulations play an important role in how travel businesses operate. The following contributions explain the impact of payment regulatory frameworks on different players in the industry. Moreover, with taxes quickly becoming a pain point for tourists, we offer an educational overview of how tourist taxes work and how they impact both travellers and the aviation industry.

What payment challenges do travel agents and tour operators face under evolving EU regulations?

Eric Drésin, Secretary General at ECTAA, offers an overview of the payment challenges travel agents and tour operators face, discusses the role the pandemic played in the rise of digital payments, and the impact of regulatory frameworks like PSD2, PSD3, and the European Commission's revisions to the Mobility Package and the Package Travel Directive, among others.

Key takeaways:

• Emerging regulatory challenges and opportunities
• The role of alternative payment methods (APMs) in travel
• The impact of the COVID-19 pandemic on payment behaviours

Read the full editorial here.

How do tourist taxes work, and what is their impact on the aviation industry?

In a two-part interview, Adiel Mambara, Country Manager for Royal Brunei Airlines in the UK, presents an overview of how tourism taxes were introduced, how their purpose changed following the pandemic, and how the resulted revenue is allocated. The first part of the interview also features case studies on how tourism taxes are implemented in Italy, Spain, China, Japan, and the UAE.

In the second part of the interview, Adiel Mambara explains how varying tourist tax rates across countries impact airlines' route planning, offers an overview of the Air Passenger Duty, and puts forward a list of long-term implications of sustained tourist taxes. 

Key takeaways:

• The history of how tourism taxes were introduced and how their purpose evolved post-pandemic
• How revenue from tourist taxes is allocated
• Case studies on tourism tax implementation in Italy, Spain, China, Japan, and the UAE
• How varying tourist tax rates across countries impact airlines' route planning
• An overview of Air Passenger Duty (APD) and its effects
• Long-term implications of sustained tourist taxes on the aviation industry

Read part one and part two of the interview here.

How can travel companies manage risk?

Risk management in the travel industry is a nuanced issue. Moreover, with fluctuating exchange rates, the complexity of currency conversion, and high transaction fees, forex is another key pain point in the travel industry that often leads to inefficiencies and financial losses for travel businesses.

What forex strategies should airlines use?

Maarten Rooijers, the founder of Payments Taking Off and an airline payment and forex specialist, discusses the challenges airlines face when converting foreign currency revenues from international ticket sales, foreign exchange risk management, forex hedging strategies, and ways that airlines can leverage foreign exchange to their advantage.

Key takeaways:

• Potential inefficiencies in airline forex processes and how to address them
• Differences in foreign exchange risk management between low-cost carriers and full-service airlines
• Factors airlines should consider when selecting a forex hedging strategy
• Challenges of operating in countries with unstable economies or restrictive currency regulations
• How airlines can leverage foreign exchange to their advantage

Read the full editorial here.

Why do one-size-fits-all risk strategies fail in travel?

Livia Vité, Chief Executive Officer at actuary.aero, explains the intricacies of risk management in the travel industry.

Key takeaways:

• Why a universal risk approach is ineffective for travel merchants
• The importance of articulating your risk profile when working with financial providers
• Why acquirers should adjust their risk criteria as travel merchants' business models evolve
• Strategies that travel businesses should adopt to manage risk and support sustainable growth

Read the full interview here.

What role does sustainability play in travel payments?

With growing concerns regarding the environmental, social, and economic impact of travel, more than ever before, sustainability has become a hot topic in the industry.

How is IATA integrating sustainability into air travel?

Muhammad Albakri, Senior Vice President, Financial Settlement and Distribution Services at IATA, examines explores airline payment challenges, emerging payment trends, customer-centric payment strategies, and sustainability integration in air travel.

Key takeaways:

• The challenges airlines face regarding payment processing and fraud prevention
• Trends shaping the future of airline payments
• Strategies for airlines to enhance customer-centricity through payments
• How IATA is working to integrate sustainability initiatives into air travel

Read the full interview here.

How do regional and demographic differences shape sustainable travel preferences?

Trip.com Group examines how payment preferences vary by region, upcoming trends affecting OTAs, and how different generations and geographies approach sustainable travel.

Key takeaways:

• How to stay ahead of changing payment preferences across different geographies
• Trends that will have an impact on OTAs over the next 3-5 years
• Regional differences in how travellers perceive sustainability
• How sustainability concerns shape the travel habits of different generations

Read the full interview here.

What topics should we cover next?

Our goal is to create a comprehensive resource for navigating travel payments, and we value our readers' input in shaping this series. If you would like to see any specific topics covered, we invite you to share your thoughts with us at payments.team@thepaypers.com. We look forward to hearing from you!

The Paypers' Travel Series features insights from the following industry experts and organisations:

• Eric Drésin | ECTAA | Secretary General
• Thierry Stucker | IATA | Director, Industry Payment Programmes
• Muhammad Albakri | IATA | SVP, Financial Settlement and Distribution Services
• Paul van Alfen | Up in the Air | Travel Payments Strategist
• Sam Argyle | Alternative Airlines | Managing Director
• Jacqueline Ulrich | Nuvei | SVP Global Travel Partners & Product Strategy
• Greg Toussaint | Edgar, Dunn & Company | Director
• Charlotte Piron-Seth | Edgar, Dunn & Company | Consultant
• Julia Callejo | Edgar, Dunn & Company | Manager, Paris
• Ira Vouk | Hospitality Expert 
• Ray Shinzawa | JCB International (Europe) | Managing Director
• Arturs Garais | airBaltic | Web3 Senior Project Manager
• Javier Gutierrez Rueda | Avianca Airlines | Director Corporate Development & Head of Payments and Fraud Prevention
• Gianmichele Zappia | GetYourGuide | Head of Risk and Fraud
• Michael Smith | Airline Information | Board Advisor
• Adiel Mambara | Royal Brunei Airlines (UK) | Country Manager
• Maarten Rooijers | Payments Taking Off | Founder
• Livia Vité | actuary.aero | Chief Executive Officer
• Trip.com Group | Trip.com Group
• Diana Vorniceanu | The Paypers | Senior Editor
• Iulia Mușat | The Paypers | News Editor 

This article was last updated in February 2026.