Sector pays its way - Ed’s letter

It’s been a big week for payments here at HOSPA, with webinars and round tables highlighting the issues and opportunities available to the sector. We heard horrifying stories about the money lost every year through dropped payments and hopes that better technology and more data centres - rather than a return to payment with shells and coloured stones - would provide a solution.

It’s not just about one transaction. Payments lead to bigger things. Lauren Lanik, relationship director, Barclaycard Payments, told attendees that, before making changes, the first point of call had to be understanding the wider operational picture rather than focusing solely on technology.

She said: “This wasn't just a POS or payments implementation, it was about designing something that would work in perfect harmony and I think once you really understand that, that brought everything together and meant that I could deliver the solution at scale and roll out at pace in a structured way.”

Increasingly, Pay by Bank is emerging as a solution, particularly for high-value transactions such as weddings, meetings, events and group bookings. Executives from Prommt and Markree Castle discussed how open banking technology was changing the way hospitality businesses take payments. Pay by Bank enables customers to make secure account-to-account transfers directly from their bank account to a merchant.

As Ian Murray, VP, Client Growth, Prommt, explained: "Pay-by-bank or open banking is, essentially a payment method which facilitates an account-to-account bank transfer between a customer and the merchant they're paying for.”

This creation of a direct relationship with the consumer has the potential to be part of the loyalty journey we’re all looking to drive. Giving the guest reliability - and what they want - is both reassuring and shows that you’re listening.

Earlier this year Minor Hotels was the latest hotel company to partner with Klarna to bring flexible payments to travellers booking across Europe. Travellers will be able to choose how they pay at checkout; either in full or splitting the cost into three interest-free payments.

Raji Behal, head of Southern and Western Europe, UK and Ireland at Klarna, said: “The journey should feel effortless from the very first click. Our partnership with Minor Hotels means guests can focus on the excitement of planning their trip, with payment options that fit around them, whether that’s paying immediately or spreading the cost over three interest-free instalments.”

Yes, this is a way to address cost-of-living issues, but it also shows that hotels are trying to create solutions for guests. The essence of hospitality.