Monday, 12 March 2018

Cashless payment: The future in tourism sector?


Credit: ra2studio – Shutterstock.com

New technologies always try to enhance customer’s experience with more efficient, faster and easier processes. One of them is cashless solution which is growing more and more since few years ago especially in tourism sector. Everything is done by many companies to create a centralized tool to pay, to chat, to order. Tourism and event sectors offers a lot of opportunities to develop technologies like cashless.

This article speaks about one French start-up called PayinTech who developed a new payment method including new technology in order to give a better and more secure solution to pay. Their concept is mainly based around one bracelet that people have during a business event, their vacation in a hotel or even during a sport event such as football game. They can directly pay with their bracelet by putting it in front of a terminal or a scanner. They have the freedom to put the amount of money they want and they don’t need to bring cash.

PayinTech is one of the first companies who believed in this product and they launched it in 2013. Today, they already have important customers in the tourism and hotel sectors such as the famous HellFfest festival, Val-d’Isère ski resort, Pierre & Vacances and Center Parcs. One month ago, they revealed that a second fundraising campaign was done and they gathered more than 4 million euros. It’s a great success for this start-up because since the first fundraising campaign in 2017, they doubled the size of the company. Even if this process has been approved by many companies, some consumers have a little negative review about it. For example, you have decided to put 20€ on the bracelet for your football game (to buy beers, chips or jersey in the shop) but at the end, it remains 10€. What would you do? Spend your 10€ or ask to give you back your 10€. Most of the time, you will buy another product to finish your credit on your bracelet. Some consumer thinks that this type of payment would tend to push for consumption.

However this new method of payment can be very useful especially in the tourism sector for example in aquatic parks, camping or resorts. Customers will have an easiest solution to pay and they can feel more comfortable without thinking of going back to take their money. The main objective is to simplify customer’s experience. As PayinTech already created, they can also centralized different features on your bracelet. If you spend your vacation in a resort, you can gather your room key, money and it will be easier for check in and check out. More and more sector could use this concept in the future. MICE is one attractive market because this method can be implemented in order to reduce the waiting time during registration or food point.

This solution could be useful both for companies and customers. As we saw previously, the main characteristics for users are ease of use and security. Moreover, it will help companies to improve the customer experience by delivering them a better service and also by collecting data about their behaviour. As it can be linked with management software, it can be very beneficial for companies.

Would you use this type of payment?

Antoine Gagneux and Laura Baptiste

Cuny D. (2018, February 12). Paiement cashless: la startup PayinTech lève 4,5 millions d'euros. Retrieved from https://www.latribune.fr/entreprises-finance/banques-finance/paiement-cashless-la-startup-payintech-leve-4-5-millions-d-euros-768155.html

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