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FinTech BoostUP > Trending News > Top PayTech News: Digital Payments Updates > Airwallex and Skift Research Highlights Payment System Challenges for Travel Executives

Airwallex and Skift Research Highlights Payment System Challenges for Travel Executives

By FinTech BoostUP
Posted On 9 July 2024
2 minutes read
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New research from Airwallex and Skift reveals that 66 percent of travel executives believe inefficient payment systems are harming their profits. With 70 percent finding cross-border customer payments more challenging due to new payment methods, and these transactions making up at least a quarter of their revenues, upgrading payment technology has become a key focus, with 90 percent planning to prioritize it over the next 12 months.

Jack Zhang, Co-founder and CEO at Airwallex, noted, “As global travel booms, efficient cross-border payments are crucial. Our study shows outdated payment processes are eroding profits. Modernizing financial operations with scalable solutions is essential for reducing costs and enhancing competitiveness.”

The survey of 473 travel executives across seven global markets highlights the shift in customer payment preferences post-COVID-19 and the complexities of managing diverse payment methods. With nearly 40 percent of revenues coming from international transactions, handling various payment types and managing foreign exchange fees are significant challenges.

Rafat Ali, CEO and Founder of Skift, added, “Our survey uncovers why unified payment systems are critical in meeting today’s traveller expectations. The report aims to help travel companies build more efficient, profitable businesses through modernized financial operations.”

Key Findings:

  • Shifting Payment Preferences: Local payment methods and peer-to-peer apps are increasingly used, especially in Asia.
  • Complex Cross-Border Transactions: 75 percent of companies earn over a quarter of their revenue from cross-border payments, with 67 percent finding them complicated due to volatile FX rates.
  • Operational Challenges: Inefficient payment systems impact profit margins, with nine in 10 reporting at least a 2 percent erosion.
  • Priority on Upgrades: 90 percent of executives plan to upgrade payment systems, with 80 percent interested in an all-in-one platform.

For the full report and recommendations, read here.