In today's dynamic travel landscape, embracing digital payments isn't just an option—it's a necessity. However one payment method that is slowly gaining some traction is open banking, also known as “Pay by Bank”.

With Open Banking, merchants receive payments swiftly, securely, and at a fraction of the cost associated with traditional methods, all while consumers utilise their trusted banking apps.

But, why are Open Banking payments beneficial for the travel industry?

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The travel sector is fiercely competitive, demanding top-tier experiences across every touchpoint, including payments. Yet, for many travel service providers, payments remain a pain point characterised by exorbitant card fees, sluggish settlement processes, and cumbersome experiences. Here's a few ways that Open Banking can transform the travel industry and elevate customer satisfaction:

- Reduced Transaction Costs: In a post-pandemic era where cost-cutting is paramount, Open Banking emerges as a cost-effective solution. By sidestepping hefty card fees, travel businesses can save up to 80% on processing costs, facilitating substantial savings in an increasingly challenging landscape. One travel agent who processes £1.8 million a year in payments recently switched over to Boodil and has saved over £17,500 per year on payment fees, simply by switching to the Boodil pay by bank solution.

- Boosted Cash Flow with Instant Settlement: Say goodbye to the days of waiting for payments to trickle in. With Open Banking, funds land in merchants' accounts within seconds, empowering businesses to maintain optimal cash flow and gain real-time insights for streamlined reconciliation.

- Enhanced Conversion Rates with Seamless Experiences: Time is of the essence in today's fast-paced world. Open Banking streamlines the payment journey, eliminating friction points like manual data entry and lengthy refund processes. By offering swift, secure payments, travel businesses can capture customer loyalty and drive repeat bookings.

- Eliminate Chargeback Fraud: Open Banking eliminates the risk of chargeback fraud. Without authentication, customers cannot complete the transaction with open banking payments. This eliminates the risk and ensures the customers themselves are carrying out the transaction. With this in mind, chargebacks and disputes are controlled, as customers will need to be present at the time of each transaction

The Momentum of Open Banking

The momentum behind Open Banking is undeniable. In July of this year alone, Open Banking payments soared to an all-time high, with over 11.4 million transactions processed. The surge in active payment users, totalling 4.2 million, underscores the growing popularity and efficacy of Open Banking across diverse sectors.

With Open Banking witnessing a staggering 104% growth in just one year, the time is ripe for travel service providers to embrace this transformative technology. By harnessing Open Banking's operational efficiencies, cost savings, and enhanced customer experiences, travel businesses can position themselves for sustained success in an ever-evolving industry landscape.

In a digital age where innovation reigns supreme, Open Banking emerges as a beacon of progress for the travel industry. As early adopters reap the rewards of improved operations and heightened customer satisfaction, forward-thinking travel service providers stand poised to unlock unparalleled opportunities for growth and resilience.

If you are within the travel space and want to find out more about open banking or how Boodil’s payment platform enabling merchants to send out payment links and for customers to seamlessly check out via open banking, then get in touch with us here, or at: info@boodil.com

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