With vaccines deployed worldwide and vaccine passports issued, the world seems to be reaching stability amidst the pandemic, and the travel industry is slowly reviving. However, as travellers return, so will the risk of contamination through payment touchpoints. To this rising issue, a mobile payment system seems to be the ideal solution. A mobile wallet is an app on the smartphone which can be used to make purchases in-store or at merchants listed with the mobile wallet service provider. It will act as the digital version of the traditional leather wallet.
In 2020, digital and mobile wallet payment was the most popular payment method globally. 21.5% of transactions made in 2020 were through digital and mobile wallet payments. COVID-19 was a major contributor to this boom. During the pandemic, the number of consumers using mobile wallets escalated from 900 million to 1.48 billion. According to research, mobile wallets are expected to make up one-third of all POS transactions worldwide by 2024. With this rise in the use of mobile wallets among travellers, incorporating it into hotel systems is becoming a necessity.
Advantages of mobile wallets for travellers
Security
Rather than having a stack of bills stuffed in a back pocket, having a digital wallet will provide more security, especially while travelling. Having a digital wallet will also reduce the risk of credit or debit card theft which is, unfortunately, rather common during travel. Access to credit card data is encrypted in digital wallet systems, and passcodes or fingerprint identification can provide further protection.
Convenience
Travellers are usually loaded with luggage, and it’s not unusual for them to leave things behind accidentally. Having a digital wallet will minimise the risk of leaving behind cash and credit cards. Having to look for change in order to pay while travelling creates unnecessary hassles. A mobile wallet would help travellers pay the exact amount for the purchase without any inconvenience. Besides, it is far easier to access money and any important documents through a phone than stuffing them in a heavy wallet. Travellers can keep travel cards, hotel reward cards, and travel tickets saved in the digital wallet, further simplifying travel.
Easy accessibility
Having a mobile wallet will only require downloading an app and creating a user ID and password. Waiting time and payment time will be reduced significantly, and the need to enter details with every transaction will be swept away. With no more fumbling for wallets, daily transactions will be made more accessible.
Research shows that today, about 83% of travellers use their smartphone at every point of their journey. With the increasing number of global internet users, digitally savvy travellers will increase, and they will be more open to trying out the latest technology and prefer to use digital money. The demand for an easy payment method will therefore continue to grow, boosting the use of mobile wallets.
Mobile wallets bring many advantages which help travellers to enjoy a seamless experience. Providing such a seamless experience to travellers is the priority of all hoteliers making it another reason for hoteliers to incorporate mobile wallets systems. IDS solutions give the necessary assistance for all hoteliers in accomplishing this goal. Its mobile-centric applications are tailored for mobile app incorporation. IDS solutions can provide hoteliers with better support in adapting to the upcoming buzz of mobile wallet systems.
Author
Jacob K I
Vice President - Business Development
He is responsible for developing growth strategy focused both on financial gain and customer satisfaction. He is also responsible for conducting research to identify new markets and customer needs.