Early movers in mobile payments are already reaping rewards
In its latest Mobile Payments Index, which tracks browser-based mobile payment across the world, payments technology provider Adyen has investigated travel industry data across the airline and accommodation verticals, and found that their share of mobile payments was 15.5% in Q1 2016. When compared to the overall global browser-based share of 32%, the findings highlight significant growth opportunities for travel businesses willing to invest in the mobile customer experience.
In addition, the Index finds that, in terms of Average Transaction Value (ATV) the iPad leads the way among mobile device types, with just over €330 for accommodation services and €295 for airlines. Following the iPad were Android tablets, which recorded €262 and €241 respectively, suggesting that consumers still prefer larger screens when making higher amount purchases.
The new generation of Accommodation Services is leading with mobile
According to Adyen MPI data, accommodation services are seeing 17% of browser-based transactions on mobile. However, it is no coincidence that many of the fastest-growing accommodation services startups, such as Booking.com or HotelTonight, are capturing market share through in-app and optimized mobile browser-based experience, highlighting the opportunity for established players such as hotel chains to differentiate by providing a frictionless mobile experience.
“Mobile devices are inherently personal and it’s important for the content of the apps to react to the needs of the consumer in real time,” said Sam Shank, CEO, HotelTonight. “The hotel deals we present to a booker vary depending on where that booker is located and other factors, so we can present more relevant results, and increase conversion.”
Airlines can climb to new heights with mobile payments
The research shows 13% of transactions for airlines are currently made from a mobile device. However, airlines that are investing in mobile are seeing a far greater share of payments on a mobile device. As an example, European airline Transavia is seeing a mobile payment share at 20%, 65% higher than the airline average, after investing in a mobile-optimized experience. As passengers become increasingly accustomed to interacting with airlines on their phones, and airlines offer services such as smartphone-based check-in and customer service on social media, the opportunity is ripe for innovative players to significantly increase their mobile payment share.
“We are moving to a future where many loyal travel industry customers will make their entire journey in-app, from initial booking to final checkout, with payments as a key step in that journey,” said Roelant Prins, CCO, Adyen. “Beyond in-app, travel merchants that invest in optimized experiences for web browsers across key device types are already seeing their mobile transaction volume increase significantly.”
About the Adyen Mobile Payments Index
Since June 2013, the Adyen Mobile Payment Index has tracked the rapid evolution of mobile as a payment channel, providing insight into mobile payment trends for different devices and market sectors, across selected geographies and payment methods. The Mobile Payments Index is based on Adyen’s global mobile web payment transaction data, and does not track in-app mobile payments.
Adyen (AMS: ADYEN) is the payments platform of choice for many of the world’s leading companies, providing a modern end-to-end infrastructure connecting directly to Visa, Mastercard, and consumers' globally preferred payment methods. Adyen delivers frictionless payments across online, mobile, and in-store channels. With offices across the world, Adyen serves customers including Facebook, Uber, Spotify, Microsoft, Casper, Bonobos and L'Oréal.