Summer, sun & seamless transactions

Embracing the travel season with easy payments

August is here and we see some nations sizzle in scorching heat waves, while others dance in the rain. For a select few, a perfect summer straight out of a children’s storybook is adding an extra layer of delight to the vacation experiences of on-site tourists. Yet, regardless of the weather, one truth prevails: the travel season is upon us.

During all the exciting hustle and bustle of travel planning, there’s one constant rhythm—the art of spending. As we kickstart this grand adventure, travellers must juggle the beat of payments while navigating the globe. From savouring Paella in a bustling Spanish square, treating yourself to Gelato in a cosy Italian corner café, and even hopping into a New York cab for a ride. Every time you make a payment, it’s like playing a different tune on your payment playlist.

In this blog, I’m taking you on a journey to unravel the mysteries of paying up while we’re all chasing our wanderlust dreams. I’ll dive into the hurdles that both travellers and merchants tackle when the travel season hits its peak – incl. some smart solutions to knock those obstacles. Oh, and I also discover the most cashless-friendly spots and share my personal travel (payments) hacks. So, whether you’re planning your next escapade or just getting inspired, I’ve got your back.

When I start thinking about the payment roadblocks that tag along with travel journeys, I hit a crossroads: stick with the good ol’ cash or dive into the cashless realm.

Cash considerations:

In the realm of cash, a dilemma surfaces—one that hinges on the delicate balance between convenience and security. It’s pretty clear that lugging around a bunch of cash comes with its own set of risks. While regulations dictate that one must declare amounts exceeding 10,000 EUR on flights, the threshold for what we consider “safe” varies. Figuring out how much money to take on vacation is like solving a puzzle with many pieces. It’s about finding the right amount to cover your needs without feeling weighed down by a pile of euros. It’s definitely a bit of a balancing act.

Moreover, venturing into nations with different currencies adds complexity. Does one exchange currency in their home country? What is the prevailing exchange rate? Is there assurance in converting unspent foreign currency after the journey? Just picture this: you’re at a local store, trying to handle those unfamiliar currencies, and bam, time starts slipping away while you’re left feeling a bit puzzled. Speaking from a personal perspective, I find limited benefits in carrying substantial cash during my journeys. Instead, I opt to have a modest amount on hand solely to address minor expenses such as transportation.

Digital dilemmas:

Contrastingly, embracing digital payment methods presents its own set of challenges. Especially in less developed regions, not all establishments may embrace electronic transactions. Depending solely on digital payments can turn into a real hassle when the places you want to spend at aren’t on board with the whole electronic trend. And let’s talk security – it’s a genuine concern. Public Wi-Fi networks can be like open doors for cyberattacks, making you worry about your money. Every place might have its own digital payment thing going on, some of which just don’t jive with what you’re used to back home. Sneaky fees for doing stuff internationally or exchanging currency? Well, those could quietly eat into your vacation fund, making the whole trip a bit more budget-draining than you’d like.

In this financial tangle, travellers stand at a crossroads, striving to crack the payment puzzle. It’s a juggling act of travel plans, wallet ease, and security, all rolled into one decisive choice.

To play it safe as a traveller, it’s a smart move to be ready for any payment scenario, whether you’re at a store or on the move. Having a bit of local currency on hand is a good start. Mobile wallets like Apple Pay or Google Pay can be your saviour if you happen to forget your credit card back in your hotel room. And if taking your personal plastic isn’t your thing, prepaid travel cards step in. They’re like your budgeting buddy, letting you load a fixed amount onto the card. That way, you’re shielded from going overboard on spending and from exposing your financial details while on the move. These cards are accepted almost everywhere globally. Plus, they don’t come with credit checks, and there’s even a chance you could score some currency conversion perks.

It’s not just holidaymakers who wrestle with payment challenges; merchants also find themselves in a whirlwind of chaos at the point of sale (POS). Let’s start with the most obvious; language barriers and cultural differences. Serving customers from diverse backgrounds can sometimes lead to communication hiccups, especially when merchants lack the tools to bridge language gaps or cater to cultural expectations. And let’s not forget the queues—when tourist numbers surge, so do the lines at restaurants, attractions, and various other businesses. These extended wait times, including those at the checkout, can be a major turn-off, blurring the overall customer experience. When the crowds roll in, merchants might not have enough hands-on deck to handle the rush. This could mean longer lines, not-so-happy customers, and employees feeling like they’re burning out. Plus, if the right solutions aren’t in place, restocking the shelves straight away can be a real struggle.

More travellers can also attract more businesses vying to tap into the tourism upswing, thereby adding a new layer of competition for established merchants. This pressure to stand out further prompts merchants to embrace multiple payment methods to cater to the diverse preferences travellers bring with them. With the advent of digital payment options, the demand for reliable Wi-Fi connectivity becomes a pressing concern. Depending on the location and the volume of users sharing the same network, this could lead to payment delays or even outright failures.

Tackling these challenges isn’t rocket science – it’s all about planning smart, being flexible, and making sure customers are happy. Who comes to the rescue? A trustworthy payment partner who takes care of all things payments and more, so merchants can give their full attention to their business. Stepping up to a full-blown payment management system goes way beyond just handling transactions. It’s like giving merchants a superpower to control every bit of the payment process. Safe and quick transactions, whether in different currencies or through various payment methods, become a breeze. Even adding new value-added services, like staff and inventory management apps, is a snap thanks to easy API integration. No need to dive into complex backend development. It’s like everything’s tied together in a neat package, with data flowing smoothly. That way, merchants can tap into insights and make sharp business moves with confidence.

You might’ve heard the buzz around “Cashless Society” lately. Travellers like you can also jump on this trend when seeking a new adventure and a taste of a paperless lifestyle. So, let’s explore the top three countries where cash is taking a backseat. I just found the next dream destination on my bucket list.

#3 NORWAY

In the world of cashless pioneers, the Nordic countries are leading the way. Partly due to their deep trust in institutions like banks and a warm embrace of digital innovations, these nations are setting the stage. Norway, in particular, is sprinting toward a cashless future, with:

• A whopping 98% of Norwegians owning debit cards.
• Over 95% of the population using mobile payment apps.

#2 CHINA

China’s not just the land of the Great Wall; it’s also the epicentre of the mobile payment revolution. With more than three-quarters of the population waving goodbye to cash in favour of digital payments, China is a digital paradise. QR codes have played a massive role, thanks to user-friendly platforms like Alipay and WeChat Pay.

#1 SWEDEN

Sweden has gone all-in on the cashless game! The year 2023 saw Sweden make history by becoming the world’s first cashless economy. Their secret weapon? The “Swish” mobile payments app is adored by half of Sweden’s 10 million people. Fun fact: Swedish businesses can put up a sign saying “No Cash”, and that’s it. More than half of the country’s bank branches no longer handle cash.

1. Before you jet off, check out the payment options at your destination. Download the apps that matter, and you’re all set.
2. Use secure and private networks whenever possible to protect your financial information.
3. Keep an eye on those exchange rates.
4. Carry a mix of payment methods – from (a tiny amount of) cash to your trusty credit/debit card – just in case…
5. Big adventure in a distant land? Give your bank a heads-up so your transactions don’t get mistaken for sneaky business.
6. Upgrade your mobile wallet by adding your debit and credit cards.
7. Traveling buddies? Designate someone as the “spender” and grab the Splitwise app. It’s like your travel budget’s personal assistant, making sure everyone’s spending stays on point.

And don’t forget about PayPal. It’s not just for online shopping; it’s your superhero when you’re in a bind. I had this time when I was on the road and my car needed fuel. The car filled, next POS and guess what? The only thing the gas station could accept was good ol’ cash. Lucky for me, I found a stranger who had cash to spare, so I PayPal-ed them the money, and I was back on the road in no time. Crisis averted, all thanks to PayPal!