Published on 25/02/2025

How online payments are evolving in tourism: What consumers expect and how businesses are adapting

The tourism sector is undergoing a major transformation, fuelled by new technologies and rising consumer expectations for hassle-free payments. With security and flexibility now top priorities, businesses must evolve to provide a seamless and frictionless booking experience.

1. Credit cards still lead the way—but for how much longer?

Credit cards remain the go-to payment method in the tourism sector, with 98% of travel websites accepting them as their primary option¹. However, this dominance comes at the expense of alternative solutions like Apple Pay and Google Pay. While consumer demand for digital wallets is rising, only 25% to 35% of businesses plan to adopt them in the near future¹. To stay competitive and avoid missing out on potential sales, embracing a wider range of payment solutions is becoming a must.

2. Payment in 3 or 4 instalments: a real game-changer

Payment in 3 or 4 instalments has become a go-to solution in the travel sector, making dream trips more affordable by spreading costs over time. In fact, the tourism sector is leading the charge in adopting these flexible payment methods. But there’s a catch: 38% of travel sites don’t have systems in place to protect against missed payments¹, putting businesses at financial risk. By comparison, the retail sector is better prepared, with only 18% of merchants facing this issue¹. The right payment solutions, like Floa’s built-in risk management⁴, can help travel businesses stay ahead.

3. Data security: a deal-breaker for consumers

For 71% of consumers, secure transactions are the number one priority when paying online¹. Yet, outdated methods like manual MOTO² payments still expose merchants to fraud risks. To boost customer trust and safeguard transactions, businesses need to embrace more secure alternatives—like payment links—that offer both safety and seamlessness.

4. PayPal and digital wallets: untapped potential

While PayPal is a key player in online payments, it's still underused in the tourism sector, with only 25% of sites offering it¹. At the same time, digital wallets—valued for their convenience—are on the rise, yet many merchants have been slow to adopt them. Embracing these payment solutions could be a powerful way to attract younger, digitally savvy travellers.

5. Innovative solutions for a seamless customer experience

To meet the evolving needs of today’s consumers, merchants should:

Broaden their payment solutions: Incorporate innovative solutions like digital wallets and paperless payments.
Boost transaction security: Adopt systems that meet the latest PCI DSS³ standards and focus on robust anti-fraud measures.
Increase payment flexibility: Expand the use of payment in instalments with a trusted partner that provides non-payment protection.
Enhance the user experience: Streamline the payment process with user-friendly interfaces and quick validation.

In a sector where customer experience is king, upgrading online payment solutions is no longer optional—it’s a must. By prioritising security, flexibility and innovation, tourism businesses can not only meet consumer demands but also accelerate their growth in a fiercely competitive market.

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