Mobile Payment: The Upward Trend For The Hospitality Industry

 

With huge benefits, mobile payment has changed the hospitality sectors. Mobile payments provide a faster transaction and enhance guests’ experience during their stay. 

Hotels gain favors from guests in terms of location, price and facilities. The success of the hospitality industry is often giving customers a convenience and comfort that is superior to those provided by your rivalries.

Technological innovations like mobile payment are feasible and accessible for all hotels to adopt convenience-based technologies, establishing competitive advantages. Mobile payments have gained popularity within the hospitality aspects. The mobile payment offers guests benefits while simultaneously enhancing guest experiences. Let’s take a look at mobile payment: the upward trend for the hospitality industry. 

Mobile payment definition

A report by SmartBrief and The Wall Street Journal shows that a half of travelers bring two different technology devices. Hotel guests expect to use technology at hotels regardless of conducting business, access entertainment, check-in, check-out, etc. For example, guests can choose three check-in options such as a traditional desk, self-service kiosk and a mobile device. About 40% of hotel guests check in using the iPad. Besides, travelers using self-serve tools for check-in is an example of mobile payment technology. Since guests become increasingly accustomed to using mobile devices, they prefer contactless transactions during their stay.

What about mobile payment definition? Mobile payment is a transaction carried out via the use of a mobile device such as a smartphone or a tablet. Regardless of technology in hospitality, mobile payment is convenient since customers see the inconvenience of traditional payments (credit cards). This mobile payment technology gives a convenient edge for those who always have a hectic schedule. As the large number of guests will arrive with some mobile devices, this type of mobile payment has quickly been used in the hospitality industry. 

How does mobile payment work within the hospitality industry?

The technology of mobile payment in the hospitality industry sounds complicated; however, the principles are quite simple. First of all, a terminal equipped for interaction-free payments is available. Hotel operators usually equip mobile payments at a point-of-sale (POS) station. The guest will place his or her mobile device within two inches of the terminal. 

Once people detect the device, the transaction process during their stay will take place. This mobile payment system will send information between two devices; it takes a few seconds to complete the payment process. When the transaction finishes, the system will provide guests a proof of identification through a fingerprint scan or by entering a PIN code. It depends on what mobile devices or terminal in question. The mobile payment process is approved, which enables the guest to validate the reservation and access the hotel room. 

Types of mobile payments in the hospitality industry 

Mobile payment technology has become one of the most emergent hospitality trends. So hospitality software development services have introduced lots of custom software in terms of mobile payment applications. The platforms of mobile payment offer flexibility, especially regarding implementation and usage. So what are some notable examples of mobile payment in the hotel operations and how it benefits hotels?

Dedicated mobile banking applications 

A large number of banks offer their customers several forms of mobile payment applications which are downloadable. Many mobile payment processes support interaction-free payments at property and have similar establishments. Hotel tech companies work with bank operators to provide customers with an easier approach of making payments while ensuring the safety of personal data. 

Google Pay - A notable type of mobile payment 

As a notable example of mobile payments, Google Pay has become a common trend for hospitality companies. Google Pay is quite different from others since it doesn’t require credit cards. Google Pay app sends an encrypted number attached to the payment card. The contactless payment will be processed if the number is right. Besides, people can use Google Pay to send and receive money. Many brick-and-mortar stores and restaurants have accepted Google Pay. So hotel tech companies can use Google Pay in the payment process. 

Paypal Transfer System - A great mobile payment technology 

Paypal Transfer System is another example of mobile payment technology.  Users who already have accounts will download a dedicated application for iOS and Android operating systems. There is no extra fee for any purchases. Customers can qualify for buyer account protection. When making any reservation, a Paypal account will transfer the funds, which is an advantage for those who don’t have bank accounts. 

Cyptocurrencies 

As being the most secure and anonymous mobile payment method, cryptocurrencies are unique owing to the high levels of end-to-end encryption.  This type of mobile payment is familiar with digital currencies regardless of Bitcoin and Ethereum. However, not all establishments in the hospitality industry recognize the mobile payment method as a valid form of payment. 

Why mobile payment method is becoming popular within the hospitality sector 

The advantages of mobile payment for users are obvious. Many leave home without their smartphones, so the ability to use another mobile device for payments is a great option. Customers state that taking phones out of the pocket is easier than searching for their wallet and cards in the bag. Mobile payment software reduces costs and drives extra revenue.

There is no doubt that mobile payment offers a secure and convenient approach to make payments within a few seconds. Many hospitality software development services specialize in mobile app development for payments. Here are some reasons why mobile payment software is more popular in the hospitality industry. 

Enhancing customer satisfaction 

Using mobile payment software helps enhance customer satisfaction. The latest technological facilities will support guests during their stay, so it  makes them feel cared for an entire journey. Quick and real-time support from the mobile payment process promotes convenience related to mobile payment methods. Satisfied guests will leave positive online reviews on booking platforms, leading to robust booking rates. Hospitality software development services are introducing mobile payment software for hotel operators to promote guests' experiences. 

Providing a quick and secure mobile payment 

Mobile payment methods are more secure and quick compared to traditional payment methods. In fact, mobile payment uses the same level of  encryption used by banks and financial organizations to enact transactions. Thus, guests can remain confident that their personal data will remain hidden all the time. So mobile payment helps provide a quick and secure mobile payment method for all people. When running a property, hotel operators work with hotel tech companies to establish a contactless payment process in their hotel. 

Part of loyalty programs 

Many hotels implement dedicated customer loyalty programs on their mobile payment software. It can be forms of points or similar end-user rewards. Some examples of mobile payment methods include discounts for those wanting to upgrade their rooms, check-in options, deals at restaurants, etc. Besides, travelers can sign up for local sightseeing tours without paying any extra charges. Hospitality software development services should consider mobile payment software as a part of dedicated loyalty programs. 

In 2013, Omni Hotels integrated hotel loyalty programs with a mobile wallet called Google Wallet and Apple Passbook. It incentivizes customers to use mobile wallets with accumulated discounts such as spa services and restaurants. So hotel operations have received positive feedback from customers. 

The importance of hygiene 

The outbreak of covid-19 makes hygiene concepts more important to travelers more than ever before. Hotels use mobile payment to ensure a much higher level of cleanliness and make guests feel comfortable in the check-in process. Adopting mobile payment  illustrates that the hotels are preparing to deal with industry challenges during the modern times. Mobile app development companies are introducing mobile apps to enhance hygiene in the hospitality industry.  Thus, promoting hygiene is one of the large advantages of mobile payment.