What's new in fintech for travel?: Phocuswright

Fintech is changing the way travel is purchased and settled. Simply defined, fintech is a software application that involves financial services such as payments, loans, settlement and/or insurance. In the travel industry, fintech continues to evolve with new players and services. This article is a preview of Fintech in Travel: What's New?, a follow up to The Fintech and Payment Revolution in Travel, published in July 2022.

The fintech market is broad and encompasses everything from crowdfunding platforms to consumer banking. While many of these services are applicable to travel, there are industry-specific pain points that relate to accepting multiple forms of payment and providing flexibility to travelers. The Venn diagram below shows both general and unique travel industry fintech solutions and where they intersect (see Figure 1).

As general fintech trends continue to impact our daily lives, the specific travel industry challenges that have garnered the most attention are around accepting multiple forms of payment, providing flexibility for refunds, and driving more spend management control for businesses.

General fintech trends

Other fintech trends are also emerging. In an EY study entitled The rise of PayTech — seven forces shaping the future of payments, the global professional services company lists seven areas that are having significant influence over today’s payments ecosystem:

Open banking
Real-time payments rails (RTP)
Cross-Border Payments
Buy Now Pay Later (BNPL)
Digital Wallets and Super Apps
Embedded Payments
Digital Currencies and CBDCs

The full report provides:

An update on Hopper and Navan
Fintech initiatives in travel
In-depth breakdown of general fintech trends
Technologies at the heart of fintech in travel
Consumer concerns about payments
Clear trends to watch
and more

Get the full report here.

Video: The Path Forward with Hopper's CEO Fred Lalonde at The Phocuswright Conference 2023

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