Digital payment options like PayPal, Apple Pay, and Wise have added immense convenience to our daily lives and spending habits. For those who travel abroad, these payment options also offer qualities that not only make them convenient to use but are also essential for enjoyable travel experiences. From simplifying the process of booking plane tickets to providing worry-free, secure transactions, let’s explore the benefits digital payments offer international travelers.
In this article
Global Growth and Everyday Use
Globally, the use of digital wallets has been steadily growing. In 2022, just over 40% of the world’s population used this method of payment, and by 2026, it’s projected that over 60% will. This translates to wide use and acceptance for travelers in many corners of the globe, creating a reliable payment option that minimizes what travelers have to manage while they travel, like ensuring they have enough cash on hand in the right currencies.
Booking Essentials: Transport, Accommodations, and Tours
Digital payments enable seamless payments across borders and for a variety of travel needs. Payment options like PayPal allow travelers to make purchases across currencies without needing to exchange money manually or deal with slow processing times. Digital payment providers automate these activities for travelers, and they do so instantly.
Digital payment methods are available on booking platforms and online travel agencies (OTAs) like Booking.com and Airbnb, making it simple to book experiences, accommodations, and transport ahead of time. By using these payment options and platforms, it’s also possible to book additional tours and adventures mid-travel without having to re-enter all their payment information or navigate different currencies and payment options that may vary from region to region. Travelers also won’t have to wait for their payment to go through or worry about whether their payment method will be accepted because everything’s been booked, verified, and approved beforehand.
Digital payment options also offer another useful feature for financing trips: “Buy Now, Pay Later.” For instance, PayPal offers a pay-later feature that enables users to split their purchases into multiple installments. This provides more flexibility in using and accessing funds, giving travelers more budgeting options that don’t negatively impact their credit score.
Navigating Currency and Language Barriers
When traveling, it’s common to need different currencies, and digital payments help overcome this by allowing travelers to use a familiar payment option without having to worry about conversions. This can also navigate language barriers as the purchase costs and currencies can be easily checked through digital payment platforms. Plus, there’s the ability to skip payment interfaces in another language, thanks to their contactless payment capabilities. Additionally, digital payment options pair seamlessly with other digital tools like translation apps such as Google Translate and TripLingo. These can help travelers get through language barriers during the payment process so that both travelers and vendors can better communicate with one another.
Entertainment and Leisure on the Go
Even when people are on the go, entertainment options like music, audiobooks, ebooks, video games, and video streaming services still play an important role in helping them enjoy their time, whether it’s to stay entertained on buses, trains, and planes, or to rest and unwind after running around an exciting new destination all day. Through digital payments and VPNs, travelers can enjoy their familiar favorites anywhere they have an internet connection, whether that’s binge-watching a show on Crave or gaming at casinos that accept PayPal.
Security and Peace of Mind
Beyond the ability to stay entertained when traveling from one point to another and to book accommodations, digital payments also offer increased security and, with it, peace of mind. Through platforms like PayPal and Google Pay, travelers get additional security to prevent fraudulent activities. They encrypt data and tokenize transactions, enhancing the privacy of sensitive information. This makes it more difficult for malicious actors to access travelers’ personal information.
These platforms also enable security features like multi-factor authentication (MFA) and fraud detection monitoring. MFA requires users to provide additional credentials to authorize payments, providing travelers with another opportunity to protect their personal information from fraudulent activity. Fraud detection and monitoring carried out through AI algorithms and data analytics can identify questionable payments and notify users of suspicious activity. This enables travelers to act promptly if their personal information is compromised by reporting fraud or freezing their accounts.
The Global Digital Consumer: Trends and Behaviors
The convenience, ease of use, and peace of mind provided by digital payments have not only led to widespread adoption but also the rise of the “borderless consumer.” These are individuals seeking a seamless digital experience no matter where they are located. For such consumers, there’s a preference and expectation of being able to access and engage with their preferred payment methods, content options, travel details, and other information from anywhere in the world. Over 70% of travelers prefer booking online, and of all bookings made, 65% were made online; over 30% of these bookings were made through mobile devices. Travelers and travel and tourism providers also believe that the influence of AI, particularly generative tools like ChatGPT, will make travel planning, from itinerary building to booking, more reliant on digital platforms than ever.
Adopting digital payments, among other popular payment options across the globe, helps shape the seamless, borderless travel experience that travelers now expect. This means that for online travel agencies and other travel and tourism providers, this flexibility in their online experience is essential to their success if they want to remain relevant and competitive.
The Future of Travel Is Cashless
For travelers and travel and tourism providers, the increasing appeal of digital payment options, particularly when paired with other digital tools like OTAs, is shaping a future where travel will be cashless, efficient, and convenient. And who wouldn’t want that?
