New data from Thredd, reveals that 60% of online travel agencies (OTA) struggle to find qualified payment partners with the necessary expertise to support and guide them.
Global B2B travel transaction volumes are projected to reach $1.7trn by 2027. The opportunity is ripe for payments players who can solve for common payments challenges.
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Thredd spoke to several of its clients as part of the report including Nium and Caxton.
“Travel payment processes remain stuck in the past”
Spencer Hanlon, Global Head of Travel Payments at Nium, stated: “In this age of innovation, travel payment processes remain stuck in the past. Online travel agents and intermediaries demand flexible, secure, and cost-effective ways to pay and get paid.”
The report highlights how many businesses are introducing modern solutions such as virtual cards to reduce fraud and other issues highlighted in the report including traceability and speed.
Alana Parsons, Chief Operating Officer at Caxton, commented: “A good payment solution should not only facilitate transactions but also contribute to process efficiency, enhance the customer experience, and help manage costs effectively. Look for a partner with thorough knowledge of the travel industry and the ability to customise solutions to your specific requirements.”
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By GlobalDataJim McCarthy, CEO of Thredd said: “One important impact of the technological advances in the travel industry is the emergence of new players – many of which we are proud to support – that are helping travel providers streamline the myriad systems, players, standards and options at play within the payments ecosystem, particularly with the growth of country-specific financial regulation.”
When further considering opportunities to serve the travel sector the payments industry is increasingly looking at the corporate expenses experience, with the market expected to grow at a CAGR of 11.5% through 2028. For payments businesses who can deliver more efficient and transparent processes there is a growing customer base as more personnel return to travel and businesses in emerging markets expand.
