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Insights and Expertise

Embracing a world of cashless payments, with QR-based systems like PayPay
and mobile gaining popularity.
of travel payments Despite this, one survey (see https://bit.ly/4foSgCf) revealed

cash is still the most popular overseas payment method
globally. Almost three in five respondents worldwide said
they are likely to make payments in local currency on
their next trip abroad (58 percent). It’s likely that, while
APM use has surged in every region thanks to their
convenience, they’re only truly convenient for local users.
How APMs cause problems for tourists

While APMs have become more popular globally, limited
accessibility, unfamiliarity and technical issues can pose
challenges for tourists. For example, some mobile payment
apps are region-specific. WeChat Pay & Alipay dominate
in China but can be problematic for tourists who don’t
have Chinese bank accounts or phone numbers.
By Christopher Gilderson
PXP Financial Similarly, some digital wallets have limited international
integration. Take MercadoPago; while it is popular among
o much planning and anticipation goes into residents of Argentina and Mexico, it can be challenging
booking a holiday abroad, yet many people for tourists because the app often requires local bank
arrive at their destination to find their preferred accounts or cards issued in the region.
S payment methods aren’t accepted locally. This
article looks at how the preferred payment methods in the In regions where QR code payments are popular (like
world’s top holiday destinations have changed since the China, India, or Southeast Asia), tourists can face problems
Covid 19 pandemic, why APMs can cause problems for if the systems require local apps or bank accounts to scan
tourists, and the importance of accepting a wide range of or generate the QR codes.
payment methods in the travel sector.

Around the world, people are embracing alternative
and digital methods of payment, enjoying the speed, Global payment trends for travelers
convenience and security they provide.
As payment preferences evolve worldwide, distinct
Since the pandemic, preferred payment methods have regional preferences are emerging:
shifted significantly in many of the world's top holiday
destinations, driven by the desire for contactless • Europe: Contactless payments have surged,
with countries like Sweden leading the shift
transactions, digital convenience, and hygiene concerns.
toward cashless societies.
Four years on from the first lockdowns, many European • Asia: Mobile wallets such as WeChat Pay
countries have increased contactless payment limits and Alipay dominate in China, while Japan
to encourage the shift, and mobile payment methods has seen increased adoption of QR-based
have surged, particularly in cities like Paris, Rome and systems.
Barcelona, where these options allowed tourists to pay
seamlessly without handling cash. • United States: Digital platforms like Apple
Pay and Google Pay have gained popular-
In the United States, platforms like Apple Pay, Google ity, with many businesses moving toward
Pay and PayPal have seen a boom, with both tourists and cashless models.
locals opting for these instead of cash or cards. Many
tourist attractions, restaurants and stores in major cities • Australia: Contactless card payments and
have now moved to cashless models, citing safety and mobile wallets are now standard, especially
convenience. in major cities
Services like Klarna and Afterpay have also become more Understanding regional trends can help merchants
common, offering travelers flexible payment options, and merchant service providers be better prepared
especially for flights, accommodations and luxury when expanding globally.
experiences. Even in Japan, which was traditionally a
cash-heavy society, the pandemic accelerated the adoption

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