PayFort to boost use of online payments for travel, hospitality industries

Monday 5 May 2014 00:45 CET | News

PayFort, a UAE-based online payment service provider, has revealed plans to introduce a suite of payment solutions designed to enable the travel and hospitality businesses to harness the benefits of online payment.

PayFort works with airlines and other companies from the travel and tourism sector to reduce the friction of online purchases, offering airlines alternative payment methods in key markets.

With GCC airlines representing 11% of the global airlines market and with over 7% of their bookings placed online, now is the time for regional airlines to invest in their online payment channels. The potential for growth stems from the fact that passenger booking behavior is shifting toward the online variety and that such bookings make up only 5% of the total bookings for many regional airlines.

Statistics show that 47% of Middle Eastern residents own smartphones, with almost three quarters using their mobile phones to make purchases online.

Already, airlines are taking heed. Some 67% of carriers have mobile check-in services, while almost half have apps that let customers reserve and pay for flights on their phones. Meanwhile, 28% of companies allow passengers to customize their flights by choosing seats and other perks.

The number of services airlines plan to launch on mobile platforms is expected to grow significantly. Just under 20% of carriers say they hope to offer e-wallet payment for in-flight products and other extras by 2016. But that’s not all. Analysts predict that the number of airlines offering in-flight mobile payments will increase from 5% to 36% in the next two years alone.

Airlines are also moving away from investing in kiosks, which offer few competitive advantages, especially in terms of cost, compared to mobile apps and online reservation services. Travel companies are mulling sales via social media websites as well, with 30% readying potential launches on mobile platforms.

Globally, travel agencies’ online sales were estimated at USD 2.3 billion in 2012 (13% of sales) and are expected to reach 17% of total sales. 34% of online travel agency sales come from hotels, according to a recent study by WorldPay.

PayFort supports credit/debit card payments through global payment providers including American Express, cashU, Mastercard and Visa.

In March 2014, PayFort has introduced a zero security deposit requirement on transactions for stable small and medium enterprises (SMEs) and startups.

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Keywords: PayFort, online, payments , travel, hospitality
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce