Sponsored Post: Winning confidence and protecting cashflow - why Open Banking is here to stay in the travel sector

Open Banking delivers financial and processing benefits to merchants

Payment security is front of mind for travellers. Often, when it comes to high-value payments for big-ticket expenses like holidays, transferring large amounts of money can feel daunting. Common factors such as delayed payment confirmation and unrecognised third-party providers can risk putting travellers off making a booking. 

New research commissioned by American Express has spotlighted clear opportunities for travel businesses to improve. The findings showed 47% of consumers are concerned about the security of their card details when making larger purchases like family holidays. Almost a fifth (18%) also said they have abandoned a travel booking because of long-winded payment processes raising security concerns. 

So, the stakes are high. When a preferred payment method is not available, anxieties around payment security rise, and consumers begin to consider alternatives. 

The data also showed 24% of consumers have a preferred payment method for travel bookings, and if they were unable to use it, they’d switch to another provider offering a similar price – proof that payments can provide a competitive advantage. 

It is therefore critical merchants don’t just offer a range of payment options, but that they offer the right ones, that give travellers convenience and peace of mind. 

Open Banking is one of those options. Launching in the UK in 2018, it now powers instant bank to bank payments. 

Adoption is accelerating, and for the travel sector there’s a clear and compelling use case, with products like Pay with Bank transfer (PwBt), powered by American Express, offering consumers trusted, secure ways to book travel, and businesses instant reconciliation on purchases. 

Find out below how products like Pay with Bank transfer could benefit your business. 

Simplicity and peace of mind for consumers and merchants alike 

At a time when travellers are actively seeking their preferred payment option, confidence and trust in Open Banking is growing. 

30 million Open Banking payments are now made each month, demonstrating how consumers are becoming comfortable with this faster form of payment. 

This is applicable for those making high-value purchases like travel bookings, when consumers are naturally more considered. 

Open Banking payments give consumers visibility of their bank balance, and instant confirmation that payments have been made securely through their banking app. 

The result of this is questions like “has my payment gone through?” and “is my booking secure?” don’t even get asked.

It also brings similar benefits directly to travel merchants, with ease of reconciliation, instant settlement and a reduction in fees. 

This means Open Banking solutions streamline operations of travel merchants, giving them real-time visibility over their cashflow.

Household brands such as Golf Holidays Direct, Iglu and Trailfinders have benefited from implementing Pay with Bank transfer. 

Results speak for themselves

A spokesperson for Golf Holidays Direct, said: “Integrating Pay with Bank Transfer has significantly improved the efficiency and accuracy of our customer payment process. 

“Payments are now reconciled and assigned to bookings instantly, enhancing both internal workflows and the client experience, particularly for larger groups using our Manage My Booking portal. 

“Our accounts department has already enjoyed the substantial time back from no longer manually reconciling bank transfers.

“The payment journey is smoother and more transparent, and the reduced transaction costs support our financial efficiency. 

“The entire setup from scoping to implementation was delivered seamlessly, even within our bespoke technology environment.”

Holly Coventry, vice president, Open Banking at American Express, added: “By adopting Open Banking as a payment option, travel providers will receive payment quickly and reliably. 

“As uptake increases, we’ll continue to see options like Pay with Bank transfer become a more popular choice for making these big-ticket purchases. 

“This is only a positive for merchants, as it helps build trust with customers, and make purchases that are instantly reconcilable.”  

For more information, find out here.