Virtual payments are no longer a nice-to-have in the travel industry. Over the past couple of years it has developed into a beneficial business strategy — and it goes far beyond convenience. From decreased costs to higher security, virtual payments carry endless potential for your travel business.
It’s easy to feel that the payment development has been relatively stagnant in the travel industry. Although there rarely is fire without smoke, some improvements have been made the past couple of years where an increasing number of companies have embraced new payment methods.
On top of that, new interesting alternatives have emerged and caught the attention of travel businesses. An example of this is virtual payments. After being utilized in other industries it’s finally gained popularity among travel companies and agencies.
So, why is that? What are the real benefits of using virtual payments? We have listed four main arguments on why making the move to a virtual payment system.
1. Highly secure
Eliminate the risk of payment fraud entirely. Virtual payments utilise a single-use number that can only be used for a designated amount and purpose, such as a travel event. Furthermore, a transaction via virtual payment doesn’t necessitate the transfer of sensitive banking information, as is the case with checks and electronic fund transfers.
2. Reduced costs
Cut back costs associated with payment processing. Virtual payment transactions reduce or eliminate card surcharges and cross-currency transaction fees. Thanks to higher security and automatic data matching, virtual payments also save hours of administration — time once spent processing and tracking down payments, and filing reports.
3. Simplified reconciliation
Make reconciling payment data painless for all involved. Since each virtual payment card number is automatically matched to a specific transaction, manually tracking down and comparing travel spending data between bank accounts and card statements is now a headache of the past. And everybody’s time can be put to more productive use.
4. Better cash flow
Secure payments faster. When payment processing and administration decreases, funds can be passed between parties more quickly. Virtual payments pave a smooth pathway resulting in improved cash flow, stronger businesses and better relationships between businesses and their customers.
Virtual payments are here to stay. Looking at the big picture, the greater visibility, security and efficiency that virtual payments bring to the travel industry can free up a significant amount of time.
Interested to learn more about how virtual payments will shape the industry? Download our guide “How virtual payments can revolutionize the travel industry”.