However, Apple Pay has defied this trend for mobile payments, completely spearheading the shift towards contactless and mobile transactions.
With an estimated 604 million users globally in 2024, Apple Pay is rapidly gaining traction, particularly in regions with historically strong card penetration. While the US has long led the way for Apple Pay adoption, Europe has remained close by with the UK, a traditionally card-driven market, reportedly having 64% of consumers using Apple Pay for in-person transactions and 27% for online payments. Germany, while historically more reliant on cash and bank transfers, is also experiencing strong growth, with mobile payments increasing by an average of 13% annually.
This contrast in markets highlights the growing appeal and acceptance of mobile payments and wallet technology. The convenience of a simple tap, replacing clunky forms and card swipes, has redefined frictionless for millions. This has forced a shift in the industry and changed how hoteliers engage with their guests.
Why is Hospitality Uniquely Positioned to Benefit from Apple Pay and Mobile Payments?
European hoteliers are embracing Apple Pay to cater to international tourists and the industry shift towards digital payments. As travellers globally demand secure and frictionless payment experiences, the ability for hoteliers to offer widely accepted methods like Apple Pay is critical. Some studies suggest that 2 out of 3 consumers prefer to book online with businesses that accept their preferred mobile wallet.
Hotels that fail to cater to their guests’ preferences risk losing bookings to OTAs and competitors, leading to a decline in the hotel’s key performance metrics, such as the revenue per available room (RevPAR).
Beyond the revenue opportunity, the integration of Apple Pay can enhance guests’ satisfaction, leading to repeat business and positive reviews, which, in today’s competitive environment, can be a significant differentiator for the hotel’s long-term success.
Guestline’s award-winning payment gateway offers Apple Pay, which provides hoteliers with the opportunity to offer their guests the convenience of wallet payments both online and in-person at their hotels.
Hoteliers on the Guestline platform are seeing increased conversion rates, especially those who actively advertise their acceptance of Apple Pay. Building on this success, we are developing the Google Pay integration to expand the payment options available to our hoteliers. These wallets set a new standard in payment technology with key features:
Tokenisation Safeguards the Guests Data
Apple Pay’s technology leverages tokenisation, replacing the actual card number with a unique digital token for each transaction. This safeguards guest payment details, eliminating the need for manual entry of sensitive information like PAN numbers, expiry dates, or CVC codes. Even if a token is intercepted, card details remain secure, protecting hotels from reputational damage in the event of a data breach.
Chargeback Reduction
Apple Pay seamlessly incorporates robust authentication measures with multi-factor authentication methods like Face ID or Touch ID, adding another layer of security and significantly reducing the risk of unauthorised charges before they occur. This significantly helps reduce chargebacks.
Higher Authorisation Rates
Apple Pay boasts significantly higher authorisation rates thanks to its streamlined design. Biometric authentication, real-time authorisation, and pre-saved card details create a quicker, more secure checkout, minimising errors and declines. This benefits both guests and hoteliers, providing a seamless experience and increasing conversion rates.
Increased Average Spend
Apple Pay customers tend to spend more on average, reflecting a younger and higher-income demographic with a greater propensity for spending. This can be a valuable benefit for hotels seeking to increase revenue.
Ease of Implementation with Guestline Integrated PMS
Hotels using Guestline PMS with integrated GuestPay payments can easily implement Apple Pay with minimal technical effort, making it a fast and straightforward path to offer a more secure and convenient checkout experience for their guests.
The Dominance of Mobile-Only Booking Journeys
With the increasing popularity of mobile-first booking journeys, it’s no surprise that Apple Pay is leading the charge. It offers unparalleled simplicity and convenience through a tap or a few keystrokes, allowing hotel guests to have their preferred card readily available on their device. Guestline’s own data reveal that 70% of bookings are mobile-driven, and according to McKinsey, mobile wallets are projected to surpass credit cards in overall purchasing share within the next few years. This is a trend that hoteliers cannot ignore!
What Else the Future Holds?
The Apple Pay revolution is sweeping through the hospitality industry, and hotels that fail to adapt risk being left behind. Three key factors are driving this change:
Apple Pay Goes Beyond Payments: New Features and Opportunities
Apple’s iOS 15 has introduced new features that will further drive Apple Pay adoption in hospitality. Just like storing boarding passes in mobile wallets is now commonplace, Apple now allows users to store key cards and check-in directly through Apple Wallet. This provides a streamlined digital guest experience and operational efficiency for hotels.
The Rise of Digital Identity
Europe’s move towards a unified digital identity framework, requiring private wallets to link with a new European digital identity wallet, creates a potential opportunity for solutions like Apple Pay. By allowing Apple Wallet to hold various ID documents, this could streamline self-check-in processes and drive further innovation in the hospitality sector.
Tap To Pay – Merchant iPhone to Accept Payments
Tap-to-pay will be the most important payment method for hotel organisations in 2024. According to Global Payments, 65% of hospitality businesses say they plan to prioritise this payment method.
It is clear that Apple Pay presents a compelling opportunity for growth for hoteliers. The decision to adopt Apple Pay is no longer a question of “if,” but rather “when” and “how.”
About Guestline
Guestline (an Access Company) provides the hospitality industry with innovative property management, guest engagement, payment and distribution software.
Since 2003, Guestline’s cloud-based solutions equip any sized hotel or group with everything to successfully run the business and generate more revenue – from intuitive PMS and booking software to fully unified channel management and payment solutions.
Guestline’s feature-rich portfolio includes PMS, CRS, Conference & Banqueting, Channel Manager, EPoS, Internet Booking Engine, GuestPay Payments and GuestStay Guest Experience. With over 500 integrations, Guestline offers its 3,000 clients a flexible, cost-effective, multi-functional system that allows them to stand out in an increasingly competitive marketplace.
Discover more at guestline.com
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