The Adyen Mobile Payments Index reveals huge growth opportunities for travel merchants willing to invest in mobile payments. This report draws on Adyen’s data and real-life examples to provide practical advice for merchants looking to grow market share with mobile payments. Topics: Mobile Commerce Industry: Travel & Leisure

1. Mobile Payments
Index 2016
Travel edition

2. Mobile
The next opportunity
for travel
The Adyen Mobile Payments Index reveals huge growth opportunities
for travel merchants willing to invest in mobile payments.
This report draws on Adyen’s data and real-life examples to provide
practical advice for merchants looking to grow market share with
mobile payments.

3. The global context
In Q1 of 2016, 32% of global online payments on the Adyen
payments platform were made on a mobile device.
The iPhone and Android phones are increasing their share in
tandem, while the tablet decline is driven by the iPad, which
dropped to under 8% of mobile payment share for the first time,
with Android tablets flat lining at just over 2% over the past two
quarters. (See graph on following page).
5%
10%
15%
20%
25%
Q2 Q3 Q4 Q1
Smartphone
2015 2016
Tablet
Global split of mobile payments - Smartphone vs tablet

4. In terms of average transaction value, desktop and iPad are in the
joint lead.
Global
share of mobile
by device type
iPhone continues to soar and Android grows steadily, while iPad
continues to decline.
0%
5%
10%
15%
Q2 Q3 Q4 Q1
iPad
2015 2016
Android Tablet
WindowsMobile
Android Mobile
iPhone
Global device type usage per quarter
€0
€50
€100
€150
€ 44
€ 72
€ 95
€ 115 € 115
Global average transaction value per device type, Q1 2016
Android Mobile iPhone Android Tablet iPad Desktop

5. Travel
Early movers are
reaping rewards
2016 is going to be a big year for mobile travel payments; globally
mobile travel bookings are predicted to rise by 22%*
.
However, despite the growing influence of mobile in the travel
industry, Adyen’s data reveals that the current share of mobile
payments remains relatively low, at 15.5%.
Mobile share for acommodation services is 17%, with an even split
between device types. Airline share is 13%, which is driven by tablet.
* Euromonitor November 2015, The State of Mobile Booking 2016 (Skift Report)
0%
5%
10%
15%
% share of travel mobile payments, Q1 2016
Smartphone Tablet Smartphone Tablet
Accomodation Airlines

6. Mobile is already well integrated into the passenger experience. Travelers
can check in and store boarding passes on their smartphones, check flight
status and even chat with customer support. However, when it comes to
actually buying a ticket on a mobile device, there is a lot of room to grow.
While 13% might seem small compared to the global share of 32%, it is a
high percentage when considering the typically high transaction value of an
airline ticket. Further, as mobile increasingly becomes a central part of the
passenger journey, this share is bound to grow.
Airlines
Reaching new heights with
mobile payments

7. Airlines
share of mobile
by device type
Given the typically higher transaction value of iOS users, it is no
surprise that iPad is driving mobile payments for airlines.
It also suggests that passengers still favor larger screens when
making high value purchases.
0%
5%
10%
15%
20%
25%
Global vs Airlines
Smartphone Tablet Smartphone Tablet
Global Airlines
Airlines: Mobile usage split by device type
€0
€50
€100
€150
€200
€250
€300
€350
€ 184
€ 228
€ 241
€ 267
€ 295
Average transaction value per device type, Q1 2016
Android Mobile iPhone Android Tablet Desktop iPad
0% 2% 4% 6% 8% 10%
iPad
iPhone
Android Tablet
Android Mobile

8. Industry leaders are beginning to make inroads: KLM successfully
introduced payments to its customer support on social media,
allowing passengers to complete a purchase from Twitter, thereby
making the process extremely mobile friendly. Transavia has also
embraced mobile optimization:
“To make the mobile experience easier for our
customers we designed a scalable website, and were
the first to launch Whatsapp as a service channel.
Thanks to this investment, mobile now accounts for
20% of our payments.
Brit Haarmans
Senior Product Manager
Industry insight

9. When optimizing payments for mobile devices, it is important to
consider the passenger on the move and enable a quick and easy
payment flow, as demonstrated by SAS Airlines and Vueling:
“We have also optimized our mobile payment
experience by storing preferred payment methods
to enable instant booking. We also support e-wallets
and payment methods that allow for an easy,
one-click checkout.”
Charlotta Frohm
Business Developer, Customer Payment Solutions
“Implementing mobile payment solutions like Apple
Pay and Android Pay enables passengers to checkout
with a single touch.”
Javier Alvarez Sanchez
IT Manager
Industry insight

10. New developments will even enable passengers to make point of
sale purchases on-board with their phones. This will enable airlines
to centralize all transactions, from flight booking, to seat-upgrades
to on-board purchases and view passenger payment history in
one place.
“The next innovation we would like to see in mobile
payments is in-app payment on-board. This would
allow passengers to pay for food and drink on-board
with their mobile, and receive a digital receipt. That
would be a revolution if we enable it in an offline
environment.”
Brit Haarmans
Senior Product Manager
Industry insight

11. There are many exciting opportunities for accommodation services. Guests
can now browse, book, check-in and even order room service via their
smartphones. Therefore the scope for building loyalty and up-selling is
significant.
Companies like HotelTonight and booking.com are already leading the
way with a mobile first strategy. And, in order to keep up, 24%*
of hotels
state they are prioritizing mobile payments this year. Consequently, we can
expect the share of mobile payments to increase significantly.
Still, with a current share of 17%, there remains a huge opportunity for
hotels and booking sites to differentiate themselves by providing a fully
integrated mobile experience to guests.
*hospitalitytechnology.edgl.com
Accommodation
The new generation is
leading with mobile

12. Accommodation
share of mobile
by device type
In terms of transaction value, iPad is in the lead, followed closely by
desktop. This suggests that there is still room for further optimizing
the experience for small screens.
Although smartphone dominates globally, when it comes to booking
accommodation, tablet retains its market share. This is likely to
change as the payment flow for smaller screens improves.
0%
5%
10%
15%
20%
25%
Global vs Accommodation
Smartphone Tablet Smartphone Tablet
Global Accomodation
€0
€50
€100
€150
€200
€250
€300
€350
€ 200
€ 254 € 262
€ 329 € 331
Average transaction value per device type, Q1 2016
Android Mobile iPhone Android Tablet Desktop iPad
0% 2% 4% 6% 8%
iPad
iPhone
Android Mobile
Android Tablet
Accommodation: Mobile usage split by device type

13. Industry insight
When designing the mobile experience, it is important to
accommodate the needs of the traveler on the move.
HotelTonight recommends the following considerations:
Simplicity — instead of showing you every hotel, we show
you the top rated hotels with the very best deals. This saves
time, and is more accommodating to smaller screen sizes.
Speed — mobile bookers are on the go, and usually
in the midst of doing something else. Our motto is to
get you out of the app and on with the rest of your
night as soon as possible. We obsess over tap counts,
making it possible to book a hotel room in three taps
and a swipe.
Contextual Awareness — mobile devices are inherently
personal and it’s important for the content of the apps
to react to the needs of the consumer in real time. The
hotel deals we present to a booker vary depending
on where that booker is located and other factors.
This personalization increases conversion while
simultaneously improving our customer satisfaction.
Sam Shank
CEO

14. Mobile contributes to a wider omnichannel proposition which puts
the customer experience front and centre.
Recognizing guests across sales channels eliminates the need for
them to re-enter payment details when making payments from a
different channel or location.
“With Adyen we can serve a repeat customer who
comes to our hotel every week, and ask for their
card details only once. So we provide a flawless
experience. “
Lennert de Jong
Director of Distribution and Business Development
Industry insight

15. About the Adyen Mobile Payments Index
Since June 2013, the Adyen Mobile Payment Index has tracked
the rapid evolution of mobile as a payment channel, providing
insight into mobile payment trends for different devices and
market sectors, across selected geographies and payment
methods. The Mobile Payments Index is based on Adyen’s global
mobile web payment transaction data, and does not track in-app
mobile payments.
To get in touch, email travelpayments@adyen.com
About Adyen
Adyen is a technology company that provides businesses with
a single solution to accept payments anywhere in the world.
The only provider of a modern end-to-end infrastructure
connecting merchants directly to Visa, MasterCard, and 250 other
payment methods globally, Adyen delivers frictionless payments
across online, mobile, and in-store. Adyen is headquartered in
Amsterdam and San Francisco, with offices across North America,
South America, Europe, Asia and Australia.
We work with some of the world’s biggest travel companies :

16. www.adyen.com