understanding the african travel payments ecosystem
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Understanding the African Travel Payments EcosystemExplaining recent changes, current trends, and the future of the industry
● Africa is the fastest growing travel market in the world ● Approximately 80% of Africans have mobile phones
The Current African Travel Industry Market
The Current African Travel Industry Market
● Data revenue for telecoms has grown 67% in South Africa, Kenya, and Nigeria in the past few years
● Approximately 80% of Africans do not have bank accounts
● In Africa, the number of mobile payment users in 2011 was 54.54 million and is expected to grow to 101.34 million users in 2016
The New Market Realities
1. Multiple Devices: Customers must be served from laptops, desktops, wearables and mobile devices.
2. Multiple Countries: Customers travel within their nation’s borders and beyond them, so they must be able to conduct cross-border payments.
3. Multiple Services: Travel operators can increase revenue by offering additional services like insurance, transportation, events, and experiences.
The New Market Realities
4. New Risks: As the industry expands, so do the security risks.
5. New Solutions: Advancements in technology make it quick, easier, and less expensive to serve customers and avoid risks.
Multiple Devices - challenge
Challenge:Customers must be served from laptops, desktops, wearables and mobile devices.
Often, customers may begin their research on one device and complete it on another.
African travel operators must provide services to customers across all of these devices.
Multiple Devices - solution
Solution:While travel merchants should offer online payment options as well as mobile payment options, you must also:
Design payment pages responsively for a seamless payment experience across all devices
Offer hosted payment pages and encryption for added stability and security
Accept non-traditional payment methods like ewallets and cryptocurrency
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Multiple Countries - challenge
Challenge:Customers not only travel within their nation’s borders, but beyond them, as well.
Travelers must be able to conduct cross-border payments to travel freely.
Multiple Countries - solution
Solution:Accept mobile-enhanced payments to help more travelers enjoy the benefits of being able to spend money internationally.
Use dynamic currency conversion so travelers can pay in their home currency and you can accept payments in your currency
Multiple Services - challenge
Challenge:Many travelers like to book full-service tourism deals.
Travel operators need to offer turnkey packages including additional services to their customers, such as:• Insurance • Transportation• Events• Experiences
Multiple Services - solution
Solution:Expanding your offering increases your average price and lets you better serve your customers.
An alternative to expansion of services is to partner with other merchants who offer complementary services to your own.
When doing so, aim to ensure a seamless payment process for the traveler.
New Risks - part 1
As the industry expands, so do the security risks. Here are ways to protect yourself:
• PCI Compliance: Use a payment service provider that has achieved PCI DSS Level 1 certification.
• Combat fraudAbout 75% of travel and tourism companies are victimized by online fraudsters.
Educate yourself about the risks and how to avoid them.
New Risks - part 2
• Enhance securityBest-in-class security is available for travel websites through a hosted payment page.
A hosted payment page allows you to focus on your core business and know that security is taken care of.
• Handle chargebacksLearn about the chargeback process and what you can do to help your business avoid them.
New Solutions - part 1
Technological advancements make it quicker and easier to serve customers and avoid risks. Here are some innovations to keep in mind:
• EMVChip cards offer added security to merchants and travelers.
• Digital CurrenciesCryptocurrencies like Bitcoin can help with in cross-border transactions.
New Solutions - part 2
• Mobile WalletsE-Wallets like Google Wallet or Apple Pay make the checkout process fast and easy .
• Responsive Payments PagesHosted payments pages that are responsive for different screen sizes offer higher security, reduce liability, and save money and time.
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