Mobile payment is not just a convenient option for guests, but a competitive advantage for hotels that want to offer a seamless and personalized experience. In this article, we will explore how hotels can create a mobile payment experience that is secure, fast, and easy for guests, and what benefits it can bring to both guests and hoteliers.
Mobile payment is the process of using a smartphone or other mobile device to pay for goods or services, either online or in-person, without the need for cash or cards. It is becoming increasingly popular among consumers, especially millennials and Gen Z, who value convenience, speed, and security. According to a report by Juniper Research, mobile payment transactions are expected to reach $3.7 trillion by 2024, up from $1.8 trillion in 2019. For hotels, mobile payment can offer several advantages such as reducing friction and increasing revenue and loyalty by enabling guests to make impulse purchases or join loyalty programs with a few taps on their phones. Furthermore, it can improve operational efficiency and cost savings by reducing the need for staff, hardware, and paper receipts while streamlining the payment process. Additionally, it can enhance security and compliance by using encryption, tokenization, and biometric authentication to protect guest data and prevent fraud.
The key factors to take into account would be: 1. Location of the Hotel 2. Where are the guests coming from 3. General age group of the guests 4. Average cost of staying per pax Mobile payments can offer customer advantages such as third party payment window discounts and real time check out without any hassle such as the ones offered at airports. Wrt. the Hotels, the benefits would include saving on front desk manpower, no lag in deposits, realtime account settlement, increased reach, availability of insights such as age group to target and access to knowledge spending capacity of different groups. Hotels can further sell this information to market players, if permitted under the privacy regime.
Why mobile payment? Time is money!!! less time to proceed with payment more you can continue with operations. less staff involvement with cash is a good thing because is faster compared to counting bank or coins notes or coins. It is a solution to avoid any mistakes, delays and it is free of germs. Scanning a QR code takes a few seconds and the payment is done. The staff just prints the receipt and is done to continue their activity and the clients as well. No time is lost because the cashier does not have the small change needed for the transaction! or anything else. Again, Time is money. Less time spent counting money more transactions can be done with mobile payment.
Guests tap to pay by mobile at home but when they come to your hotel why do they.... Need to type in their card and be exposed to potential fraud? Need to be redirected to another site to authenticate? Cannot instantly confirm the reservation?
When selecting a mobile payment solution for hotels, compatibility, functionality, user-friendliness, and security should all be taken into account. The solution should be compatible with existing systems, such as PMS and POS, and offer features that improve the guest experience. It should also be easy to use for both guests and staff, with a simple interface, fast performance, and clear instructions. Security-wise, the solution should comply with the highest standards of security and privacy, using encryption, tokenization, and biometric authentication to protect guest data.
It's about your guests.... Where is the majority of your guests from? How do they pay at home? Which payment gateway is available in your country that provides the payment method most used by your guests? Transaction fees - choose a solution that helps increase guest booking conversion rate rather than simply comparing fees. Pro Tip: Does the solution offer wallets like Apple and Google Pay.
Once a hotel has chosen a mobile payment solution, it needs to implement it effectively to ensure a smooth and successful transition. This includes planning by setting goals and objectives, assigning roles and responsibilities, allocating resources and budget, and defining timelines and milestones. Testing is also necessary to ensure that the solution works properly and meets the expectations of guests and staff. Training staff on how to use the mobile payment solution is important, as is providing manuals, guides, and tutorials for guests. Launching the solution gradually and strategically is key, as is communicating its benefits and features. Finally, monitoring performance, collecting data and feedback from guests and staff, and using it to optimize the mobile payment solution are essential steps.
Despite the benefits and opportunities of mobile payment, there are also some challenges and barriers that hotels need to overcome. For example, guest adoption may be low due to lack of awareness, trust, or familiarity. In this case, hotels should educate guests about the advantages and security of mobile payment, offer incentives or rewards for using it, and provide alternative payment options. Additionally, staff resistance may be present due to lack of skills, knowledge, or confidence. Hotels should train and empower staff on how to use mobile payment and reassure them that their jobs are not in danger. Lastly, technical issues such as connectivity, compatibility, or reliability may arise. Hotels should ensure they have a reliable and secure network, system, and device for mobile payment and provide support and assistance for guests and staff in case of any errors.
To make guests aware is simple... Ensure your booking engine is mobile-friendly. Most guests are viewing your site on a mobile device. Ensure the pay-by-mobile options are exposed at the time of payment such as wallets, Apple and Google Pay. Pro Tip...a good payment gateway will collect the guest's payment details such as card number but not charge them until payment is required...such as at the property.
Mobile payment is not just a transactional tool, but a strategic asset for hotels that want to create a seamless and personalized experience for guests. Hotels can leverage the potential of mobile payment by unifying and integrating the guest journey from booking to check-in, stay, check-out, and post-stay. They can also offer a customized and differentiated experience by tailoring their services, offers, and communications to the guest profile, behavior, and feedback. Additionally, mobile payment enables hotels to innovate and experiment with new services and features such as voice or chatbot payment, biometric or facial recognition payment, or blockchain or cryptocurrency payment. This allows them to stay ahead of the competition and changing guest expectations while creating a unique and memorable experience .
Guests often choose to book and pay via OTA as their details are saved and offer a one-click checkout. Many of them use Stripe to manage payments. Stripe is also accessible to hotels of any size and often already is integrated with your current booking engine.