Big Interview: Flexibility and simplicity are 'profoundly changing payment habits'

Alma, a French player in installment payments, is partnering with Namastay, a specialist in payment solutions for the hotel industry. According to Antoine de la Rivière, the company's CRO, technology is now helping to make installment payments a decisive factor in the travel sector, including for high-income earners.

Alma is a French company specialising in installment payments, founded in 2018. Our ambition is based on a clear conviction: to move installment payments away from traditional banking logic to offer a tool that is simple, that will create value for merchants, both small and large, online and in physical stores.

Our core business is to use this tool to help merchants of all kinds, and also, in the travel sector, to improve their conversion rates and facilitate access to higher value purchases, regardless of their customers' income levels.

Today, at Alma, we have over 23,000 partner merchants of all sizes. In the tourism sector, we work with major players like SNCF, PerfectStay, Campings.com, and Showroomprivé Voyages, but also across many other verticals and sub-verticals within tourism, including airlines with KLM, campsites, cruise lines, and hotels like Fontenille Collection, among others. Alma currently processes several billion transactions each year, and tourism represents just over 10% of our business, with above-average growth.

Alma has just announced a partnership with Namastay, a hotel booking specialist. What are the specific payment needs of this sector?

Traditional hotels are lagging behind other payment processes, at least in the digital realm. Aside from the major, highly digitised players, payment processes are often complex, inefficient, and sometimes disconnected from the booking experience, which can create friction and impact conversion rates. In this respect, a company like Namastay is bringing about a true revolution, enabling hotels to upgrade their digital experience to one that is seamless, secure, and aligned with e-commerce standards. Another major challenge lies in the sector's high level of intermediation, particularly through large booking platforms, which puts pressure on hoteliers' margins.

Therefore, these players are able to upgrade their operations with a solution like Namastay, which incorporates Alma's expertise. By facilitating direct booking, these solutions allow establishments to regain control over customer relationships, pricing policies, user experience, and data. There are thus numerous advantages to adopting a solution like Alma, within Namastay, for this industry.

Is the installment payment option offered by Alma in high demand in the hotel industry?

Installment payments are sometimes seen as a substitute for consumer credit, aimed at a specific customer base. But in reality, they primarily respond to a desire for flexibility and a seamless shopping experience.

For large purchases of several hundred or even several thousand euros, the issue of flexibility is relevant to everyone. When a purchase represents several hundred or even several thousand euros, the possibility of spreading out the payment without fees is viewed very positively by consumers, regardless of their profile or income level. And this reasoning applies to all sectors, including travel, where the amounts involved are often significant.

Why would that be more true today than it was 15 years ago?

Fifteen years ago, technology didn't allow for payment processes that were both flexible and instantaneous. Real-time processing is essential. Flexible payment, offered free of charge, is appealing for large purchases. However, if it requires filling out a form and takes ten minutes, this flexibility comes at the cost of a less seamless experience. The concept of flexibility has always existed. But the ability to make a decision in less than ten seconds, with very limited information, simply wasn't available. This combination of flexibility and simplicity has profoundly changed consumer habits and fostered the widespread adoption of installment payments.

Has this fluidity made this practice widespread, and does it now also exist in the high-end market?

The ability to improve this flexibility, without complicating the customer journey, explains its adoption today in sectors historically little associated with credit. Alma, for example, is now a leader in the ski and winter sports market, but also with major luxury brands such as Chaumet (LVMH group), Omega, and Messika.

In travel, as in other verticals, a new generation of consumers, very comfortable with digital uses, considers these solutions as a standard.

The search for flexibility and simplicity now transcends social categories and living standards.

Does this flexibility have an impact on hotel conversion rates or on basket values?

Installment payments work on several levels. First, they remove a psychological barrier at the point of purchase, thus facilitating conversion. Second, they allow for premiumisation by making higher-value services accessible. Installment payments also encourage pre-booking. Furthermore, they play a key role in customer loyalty. A smooth, transparent payment experience with no hidden fees significantly contributes to the overall perception of the service. Conversely, unexpected charges or a poor experience can permanently damage customer relationships. Offering a responsible and transparent solution is therefore essential for ensuring satisfaction and repeat business.