Asia-Pacific has grown into the world's largest market for cashless transactions. Find out what are the top APMs here.
Mobile payments are regulated payment transactions that are performed using a portable device like a smartwatch or smartphone. For instance, at a hotel, instead of a physical credit card or cash, guests can pay for a product or service using a mobile device.
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How are Mobile Payments Transforming the Hospitality Industry?
Hospitality is a service industry and with technology advancements in the hospitality industry, clients can have experiences that are seamless and personalized.
Mobile friendly Applications and Websites:
Several hotels are mobile-friendly now. Businesses are understanding that mobile websites and applications are apt for encouraging potential customers for booking rooms, checking availability, reading reviews and more. As with mobile apps for the hospitality industry, they are a great way of making it easy for guests to book reservations and stay informed about exclusive offers.
Sharing the Latest Information:
A Content Management System (CMS) in a hotel helps in ensuring that customers have access to real-time information. With these systems, users can input, modify and also delete data in minutes and control the information.
Relationship Management and Customer Connectivity:
Hotels are now using more advanced methods, such as social media, to stay connected with guests. They can now use social media platforms to learn about their customers’ stay and food experiences. The company can also respond to any customer comments, feedback or questions quickly through Facebook or Twitter pages.
Using Customer Behaviour for Improving Trend Predictions:
The interactions guests have within the hotel's mobile app provide valuable insights into their preferences, allowing hotels to better predict trending services.
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The Most Popular Mobile Payment Options
Mobile Wallets
You have likely heard about Google Pay and Apple Pay. These are the most popular mobile wallets, known as digital wallets or virtual wallets. They are based on Near Field Communication (NFC), which is a short-range wireless data transmission technology. This allows for exchanging data from a few inches away, for instance, when paying. Most of the smartphones and smart devices have a NFC chip, so they can be easily converted to a digital wallet at any point.
Online Payment Gateway
Online payment gateways are a type of contact between buyers and sellers. Guests can sign in to the service through their browser or email account and then add their credit card information either manually or pay with their favourite wallet like Apple Pay. Online gateways offer guests a convenient, contactless and secure option for making online payments.
QR (Quick Response) Code Payment
QR code is a matrix barcode containing optical information that can be read by compatible devices. The QR code system is a great way of replacing the need of entering the card information manually. It reduces errors and enhances payment security. You can easily generate the code, which the guests can scan even with an older phone that is not compatible with NFC. The QR code payment system is connected to the mobile wallet and soon after the guest’s phone scans the QR code, the purchase amount is charged automatically.
mPOS Payment
Mobile POS payment is a great solution if your hotel has several points of sale, like a reception, bar, restaurant etc. Implementing an mPOS payment system doesn't require a significant investment in hardware, it is enough to have an NFC-compatible smartphone or tablet that can be changed to a Point of Sale (POS) system using the right software.
GoZayaan integrated with XanPay to offer their consumers a way to pay with their local payment method. Read more on how XanPay has impacted GoZayaan's business.
5 Benefits of Mobile Payments in the Hospitality Space
1. Faster and Seamless Payment
People are increasingly relying on digital forms of payment, instead of cash. With the widespread use of smartphones, mobile payment solutions are becoming more prevalent. Users are steadily growing and there are nearly 7 billion smartphones in the world today. The combination of these two trends implements that mobile payment solutions are inevitable in your hotel.
Mobile contactless payment solutions are more convenient and also much faster than traditional payment methods. Your guests don’t have to worry about finding the nearby ATM or they don’t have to reach for their wallets. Instead, they can simply authenticate the online payment transaction with their smartphone, which is always handy.
2. Better Security in Transactions
It’s time to leave the traditional PIN codes behind as they can be forgotten, lost or guessed. On the other hand, paying with smart devices is completely secure and requires fingerprint authentication or facial recognition. This type of biometric authentication is more secure.
3. High Hygiene Standards
Post-pandemic, guests value high hygiene standards and solutions that are contactless more than ever before. Mobile payment helps with precisely that. It reduces the possibility of contact points, as the staff at reception doesn't have to handle cash or physical cards. With the help of contactless mobile payment solutions, you can provide more comfort when checking in and out.
4. Competitive Advantage with New Technology
Hotels that keep up with the latest trends can increase the interest and loyalty of valuable guests who demand new technologies that make their lives easier. When it comes to payments, customers usually don’t want to spend a lot of their time and look for fast and efficient options. Mobile payments are one of the fastest ways of safely making payments.
5. Making Payments Possible for the Unbanked
A large number of people globally—with a large concentration in developing regions—do not have access to traditional banking services, making them 'unbanked'. By offering mobile payments, hotels can reach a wider audience and attract a broader range of guests.
Learn how the payment trends are evolving in the travel industry.
Conclusion
Mobile payments have become the norm thanks to their convenience, which they offer to both businesses and customers. Mobile payments have become increasingly important in helping clients choose a hotel or a restaurant. As mobile payments become more prevalent, hotels that don't offer this option may miss out on potential guests and market share. For companies to take advantage of the new technology, they need to make sure that they prepare for an increase in business by creating a plan for dealing with the additional customers.
Asia-Pacific has grown into the world's largest market for cashless transactions. Find out what are the top APMs here.
Asia-Pacific has grown into the world's largest market for cashless transactions. Find out what are the top APMs here.