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4 key travel payment methods you need to keep on your radar in 2025
By February, the travel industry hits full throttle, fuelled by a surge in bookings that kicked off on Sunshine Saturday, the first Saturday of January and a key moment for holiday bookings. As UK consumers plan their dream getaways inspired by the post-holiday season and winter blues, the question arises: is your travel business ready to thrive in this high-stakes season?
As booking momentum builds, so do consumer expectations, particularly when it comes to payments. A payment revolution is transforming the travel industry, driven by the demand for greater convenience, security and personalised options. When it comes to technology solutions, 34% of travel companies worldwide stated that they are planning to implement alternative payment methods (APMs) to their websites. To remain competitive in 2025, travel businesses must embrace APMs like digital wallets, Buy Now Pay Later, Pay by Link and local payment options.
In this article, you will discover why APMs are no longer optional for travel success in 2025 and beyond. Learn how these innovative solutions can help you deliver the seamless payment experiences today’s travellers expect and secure your place in the future of travel.
Key payment methods for 2025 in the travel industry
eWallets or digital wallets
Digital wallets like Apple Pay, Google Wallet and PayPal will be even more widely adopted as mobile wallet transactions are expected to reach $9.4 billion in 2025. Incorporating biometric security measures such as fingerprint or facial recognition adds a layer of protection and makes digital wallets an attractive option for travellers who want secure, one-click payments.
Travel companies should prioritise digital wallet options and ensure seamless integration for both online and in-person transactions to cater to travellers who rely on their smartphones for everything from booking to boarding.
Buy Now Pay Later (BNPL) services
In 2024, around 380 million people use BNPL globally, which is expected to grow to 670 million by 2028, which is a significant increase of 76% throughout the years. This rapid growth highlights the increasing appeal of BNPL, particularly in the travel industry, where 28% of travel companies are planning to add BNPL to their payment methods.
BNPL is especially attractive for high-cost purchases, such as long-haul trips or family holidays, offering customers greater flexibility. To leverage this trend, travel companies should carefully select BNPL solutions and monitor economic conditions to manage potential risks associated with instalments. By offering flexible payment solutions tailored to diverse customer demographics, businesses can enhance accessibility and boost booking appeal, tapping into the growing BNPL market.
Pay by link
Pay by link (PBL) is emerging as a versatile and increasingly popular payment method, especially for spontaneous or last-minute bookings in the travel industry. This method allows travel companies to send a secure payment link directly to a customer’s device via email, text message or messaging apps like WhatsApp, enabling customers to complete their transactions instantly. The main benefit of this feature is enhanced security and a significant reduction in chargebacks.
For travellers, PBL offers exceptional convenience, making it ideal for booking last-minute trips, upgrading accommodations or purchasing ancillary services like airport transfers and excursions. PBL is highly flexible and eliminates the need for customers to navigate a full booking platform or app. Instead, they receive a direct, secure link to complete their transaction in just a few clicks, making it especially appealing for travellers in a rush or those unfamiliar with complex online systems.
From a security standpoint, PBL solutions are designed to enhance security by leveraging PCI DSS-compliant platforms, tokenisation and encryption. Unlike MOTO (Mail Order Telephone Order) when payments are taken over the phone, PBL incorporates 3D Secure 2 (3DS2) protocols. This additional layer of security not only protects sensitive payment data but also strengthens merchant defences against chargeback disputes, offering peace of mind for the merchant and the consumer. It reduces chargebacks by shifting the responsibility for fraud from the merchant to the cardholder.
Local payment methods
In a globalised travel industry, accommodating regional payment preferences is crucial for boosting customer satisfaction and conversion rates. In the travel industry, cross border payments are very common because travellers frequently book services from international providers, requiring seamless and secure payment solutions across different currencies and regions. Local payment methods, such as MyBank in Italy, Belgium, Portugal and Spain allow travellers to pay using familiar platforms that align with their financial habits and regulatory environments.
The use of local payment methods is on the rise, with 66% of consumers worldwide indicating that they prefer to pay in their local currency using familiar payment methods. This trend is particularly pronounced in emerging markets, where unique payment infrastructures are more common. By integrating local payment methods into their payment strategies, travel businesses can open their doors to new markets and cater to a broader audience.
Benefits of alternative payment methods
Decreased cart abandonment
Looking at cart abandonment rates, 13% of consumers leave their carts when there aren’t enough preferred payment methods. Embracing alternative payment methods allows merchants to lower cart abandonment rates, increase conversions and drive higher sales.
By incorporating diverse payment options tailored to specific markets, travel businesses can provide a smoother and more personalised checkout experience. This not only reduces friction but also enhances customer satisfaction, ultimately driving higher sales and fostering loyalty in an increasingly competitive industry.
Minimised risk of fraud
Alternative payment methods are equipped with advanced security features that significantly reduce the risk of fraud while ensuring a seamless customer experience. Many of these methods incorporate biometric authentication, such as facial recognition, fingerprint scans or eye tracking, to provide robust protection against unauthorised access.
This approach aligns with Strong Customer Authentication (SCA) requirements for two-factor authentication (2FA) under the Payment Service Directive (PSD2), aimed at speeding up transactions while bolstering fraud prevention. Likewise, digital wallets use tokenisation to ensure robust security while preserving customer convenience.
Increased brand loyalty
Providing customers with their preferred payment methods is a powerful way to build trust and enhance loyalty. Recent data from Pymnts indicates that 70% of consumers find having their preferred payment method available highly influential when choosing an online store. By offering these options, businesses not only enhance the immediate customer experience but also boost customer lifetime value by encouraging repeat purchases and fostering long-term loyalty.
Offering the alternative payment options your target customers prefer, can attract a wider audience that values these choices. Offering alternative payment methods tailored to customer needs can transform casual buyers into loyal advocates, strengthening brand reputation and driving long-term success.
Looking ahead
In 2025, alternative payment methods will become essential tools for travel businesses to meet the demands of a fast-evolving market. Digital wallets, instalment plans, pay by link and local payment methods each offer unique benefits that can enhance security, provide flexible payment options and improve customer satisfaction.
For travel businesses, adopting these payment innovations means more than convenience. It’s about reducing booking abandonment rates, building trust with security-enhanced transactions and driving loyalty through personalised payment options. By aligning payment strategies with evolving consumer expectations, travel merchants can secure a competitive edge and thrive in an increasingly mobile-driven industry. The journey to success starts with reimagining how you connect with your customers, starting at checkout.
For more insights or assistance with alternative payment methods, get in touch with John Harris or learn more at https://www.emerchantpay.com/.