With “Euro summer” being more popular than ever on social media and with travellers deciding on their summer destination, the role of digital payments in enhancing the tourism experience is becoming increasingly apparent.
With music festivals, holiday travel and tourism, seasonal promotions, and open-air dining in full swing, contactless payments can offer tourists seamless, secure, and swift transactions, which is essential for merchants to meet the rising demands of the busy summer season.
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The role of contactless payments in tourism
Contactless payment methods have become the standard of how merchants process payments today. In terms of tourism, digital payments offer travellers a seamless and efficient way to pay for their summer holiday experiences. By eliminating the need for currency exchange and reducing the risks associated with carrying cash, contactless options perfectly align with the fast-paced nature of travel.
This convenience significantly enhances the tourist experience, allowing visitors to fully immerse themselves in their destinations without having to worry about having enough physical cash and having more time to fully enjoy themselves. There is also an added benefit for businesses as digital payments streamline operations and improve management during peak tourist seasons. These methods enable enhanced personalised services to consumers, which in turn ultimately boosts customer satisfaction and loyalty.
The growth of contactless payments in Europe
With over 82% of global consumers now embracing contactless payment methods, it’s clear that tourists are seeking more dynamic payment experiences. In 2024, digital payments in Europe saw significant adoption, with over 60% of consumers using online payment methods and more than 25% opting for in-store digital payments. While traditional card payments still dominate, accounting for over 60% of transaction volume in 2023, instant payments are gaining momentum. The widespread use of mobile wallets and wearables, such as prepayment bracelets at summer festivals, across Europe highlights this growing trend.
Streamlining travel experiences through payments
As consumers continue to adopt contactless payments and “tap-to-pay” options, the use of “tap-to-enter” and QR/barcode systems are gaining momentum. These technologies are enhancing the way hotels, museums, and other venues are accessed, offering a streamlined experience for travellers and tourists. The ease and speed of these “tap-to” methods are synonymous with an enhanced experience, particularly for the digitally savvy 25-45 age group, with Millennials leading the way in travel.
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By GlobalDataContactless methods are also growing increasingly popular for train and bus services across Europe. Major rail operators and bus companies now offer online booking options, enabling travellers to purchase tickets in advance and receive electronic tickets via email or mobile apps.
Also, more and more public transportation systems are implementing “tap-on, tap-off” when traveling via train, subway or bus, making exploring a city or region easier. Self-service kiosks at stations are also equipped with contactless technology, allowing passengers to select seats and print tickets without human assistance. This streamlines the process, ensuring fast and efficient travel throughout transportation networks.
Kiosks: Revolutionising retail transactions
Online and kiosk ticket sales not only improve the customer experience but also allow high-traffic locations like parks and museums to better manage staffing and inventory. These systems also present opportunities for upselling, such as offering special tours or exclusive access to certain areas. Tour operators that take bookings in person, with walk-up windows or high volumes of guests, are also using contactless card readers everywhere, allowing guests access to their desired experiences faster and more efficiently.
Unattended and self-checkout systems are also gaining momentum, particularly in venues like museums, parks, and theatres. These systems are being embraced by cities and countries to enhance accessibility for tourists where language barriers or signage may cause confusion or increase wait times in popular hotspots. Quick service restaurants and convenience stores are also implementing these methods to reduce queues during busy periods, ensuring a seamless experience for customers.
Best practices for preparing point-of-sale systems for seasonal spikes
During the summer months, merchants face the challenge of creating memorable experiences for tourists, especially when traditional tools like loyalty programmes and targeted offers may not be available for guests visiting the country for a short amount of time. Expanding the range of accepted payment methods and payment types available to customers is essential in improving the quality of their checkout experience, particularly when catering to international visitors, including those from high-spending demographics. The reliability and speed of transactions are crucial during these busy times.
Here are some best practices for merchants to consider when it comes to offering a more enhanced payment experience for visitors:
Invest in SoftPOS: This technology can transform NFC-enabled phones or tablets into a payment device, offering flexibility and reducing queues. It serves as both a primary and backup payment solution, enhancing the overall payment experience. This becomes particularly valuable during the summer, as it allows merchants to efficiently manage increased tourist traffic and minimise wait times, thus ensuring a smoother and more enjoyable experience for customers.
Promote “Word-of-Mouth” Recommendations: Attracting tourists can be challenging and costly, but word-of-mouth marketing can have a lasting impact. Encourage visitors to share their experiences by creating engaging spaces for selfies and providing hashtags for social media. Promote local experiences and consider implementing a “tell a friend”-programme, offering discounts for referrals.
As the tourism industry embraces digital advancements, contactless payments have become essential for enhancing the travel experience. For merchants, adopting these technologies offers a chance to meet the demands of tech-savvy travellers while innovating and personalising services. Moving forward, the ability to adapt and leverage digital payments will be crucial for success in the dynamic landscape of modern tourism.
José Luis Arias is Executive Vice President Europe, Middle East and Africa at Ingenico
