Adyen index: mobile payments strong for travel
Airline and accommodation bookings made up 15.5 per cent of mobile payments in the first quarter of this year, according to payments technology provider Adyen.
The sectors also had a 32 per cent share of global browser payments, according to Adyen’s latest Mobile Payments Index (MPI), which tracks browser-based mobile payments across the world.
In terms of average transaction value (ATV), the iPad leads the way among mobile devices with a shade more than US$365 for accommodation services and $325 for airlines. Next were Android tablets ($290 and $266 respectively), suggesting that consumers prefer larger screens when making higher-value purchases, says the report.
For accommodation services, 17 per cent of browser-based transactions were on mobile devices. Many of the fastest-growing startups in the sector, such as Booking.com or HotelTonight, are capturing market share through apps and optimised mobile browsers, says Adyen.
“Mobile devices are inherently personal and it’s important for the content of the apps to react to the needs of the consumer in real time,” says HotelTonight CEO Sam Shank. “The hotel deals we present to a booker vary depending on where that booker is located and other factors, so we can present more relevant results, and increase conversion.”
Airlines can also reach new heights with mobile payments, says Adyen. The research shows that 13 per cent of airline transactions are made from a mobile device.
After investing in mobile-optimised technology, European airline Transavia saw its mobile payment share reach 20 per cent – 65 per cent higher than the airline average.
“We are moving to a future where many loyal travel-industry customers will arrange their entire journey in-app, from initial booking to final checkout, with payments as a key step in that journey,” says Adyen CCO Roelant Prins.
Launched in 2013, the MPI is based on Adyen’s global mobile web-payment transaction data.
Adyen provides end-to-end infrastructure connecting merchants directly to MasterCard, Visa and 250 other payment methods globally. Headquartered in Amsterdam and San Francisco, the company has offices in the Americas, Europe, Asia and Australia, serving more than 4500 businesses. Clients include AirBNB, Booking.com, Crocs, Dropbox, Evernote, Facebook, KLM, Mango, Netflix, Spotify, Uber, Vodafone and Yelp.