Fueled by concerns over fraud, global travelers are increasingly worried about the security of their payments.
Research from Outpayce from Amadeus found that more than 70% of surveyed travelers prefer to book with travel companies known for their payment security processes.
The survey also asked whether respondents would accept a discount to book with a travel company that had poor cybersecurity. Two-thirds of respondents said they would not book with a provider lacking adequate payment protection—even if offered a 5% discount. On average, respondents said it would take a 38% discount to persuade them to take the risk.
According to Outpayce, payment fraud has affected more than half of travelers worldwide. This trend is particularly evident in countries like Brazil, where 89% of respondents reported being victims of fraud. Overall, 64% believe payment fraud has been increasing.
Cross-Border Concerns
The cross-border nature of the global travel industry is also a key factor in security concerns. Nearly 40% of travel executives report that half of their revenues come from international customer payments, according to data from Airwallex and Skift.
With cross-border payments, the physical distance between criminals and their victims significantly reduces the chances of criminals being caught, leaving victims with limited options for recourse after being defrauded. The challenge for travel companies is to prevent fraudulent payments without introducing additional friction to the customer experience.
Alternative Payment Options
JetBlue made a splash earlier this year when it became the first airline to accept Venmo as a payment option. But most airlines already accept some form of alternative payment methods. Nearly a third have implemented buy now, pay later (BNPL) services, while a similar number offer online bank transfers and offer pay-by-link.
These features are often region-specific. More than a third of the airlines operating in Latin America, where BNPL programs are very popular, are investing in installment payment capabilities. This is a higher share than their European and Asian counterparts.
