Cashless transactions defining way forward for travel
Worldwide, cashless transactions are quickly taking over as people’s preferred method of payment. Travelers from all over the world, especially from rising economies like India, have exhibited a significant increase in their spending on vacations as a result of the post-pandemic world experiencing a boom in what is dubbed “revenge travel.” Cashless transactions have replaced the custom of exchanging local currency before travelling abroad, which was once the norm.
People have grown accustomed to making purchases online because of the strict lockdowns during COVID. The necessity to transition to cashless payments has increased as a result of this behavioural change. The travel sector has recently adapted to the preferred payment methods, which are digital wallets and UPI rather than credit cards and debit cards.
“Suddenly, every business—from the neighbourhood grocery store to the last mile service provider—accepted all those forms of payment. It was pleasing to observe how the market and the consumer were cooperating, with the market fulfilling consumer expectations as a result of behavioural changes,” according to Sukhmani of Oyo. Cashless transactions made possible by UPI and QR codes are not only practical but also make it simple to see the payment history and have access to a number of other services with a single click.
“Everything that was lacking in the cash environment, such as maintaining the whole repository and keeping track of the payment history, is now available on a mobile app. That, in my opinion, altered how consumers began to make payments,” said Amit. Although the pandemic severely disrupted and dislocated the travel sector, it also highlighted numerous customer annoyances. Aditya from Cleartrip explained how the organisation was able to turn some of the difficulties into possibilities.
“Customers wanted prompt reimbursements and flexible alternatives for changes and cancellations during the pandemic. And we’ve taken advantage of that chance by offering consumers options to deal with these problems,” he said. Organizations are working hard to provide a seamless experience as consumers grow more accustomed to contactless or cashless payments. They are also aware of the significance of continuously modifying processes to satisfy customer requests.