The untouchable wallet era: How digital currency is changing the travel industry

Digital payments have transformed almost every sector, from the tourist experience to facility booking to gift-giving behaviors. Tourists no longer need to stress about converting their national currency into a foreign one, carrying a stuffed wallet serving as a magnet for thieves, or waiting in interminable queues to process transactions. It now takes a quick BTC price examination on a reputable platform like Binance, a crypto wallet installation, and an order submission to your favorite exchange to benefit from everything digital currencies have brought. Should tourists want to pay with digital money, they can get a crypto exchange app and send an order to fill their wallets with widespread cryptocurrencies like Bitcoin, accepted for many services and products ranging from restaurant meals to airline tickets.

Numerous countries have adopted Bitcoin as legal tender, from the EU nations to Canada to Australia, and the list can go on. Similarly, the range of offerings one can pay for with digital wallets varies significantly. While the digital currency has undoubtedly changed dynamics in the industry and harbingered a new era for businesses and regular travelers, one question lies on the lips of many: what exactly can it offer the travel industry?

Perks of employing digital money in travel businesses

The proliferation of Bitcoin and the hoard of digital currencies as a modern method of paying for services and products have either made businesses reluctant and skeptical regarding the threats beneath the surface or enthusiastic and vigilant to tackle the new payment trend and catapult themselves on top of their game. Crypto promised to make travel more accessible, easier, and convenient for travelers regardless of their country, as payments can transcend borders without many implications, such as enormous bank transaction fees and day delays.

All the appeal of digital money payments has pushed governments to create their own digital coins, letting aside a solid will to overtake cryptocurrency in terms of penetration rates. As was expected, the tourism industry didn’t remain in the dark watching the players enter new roles but are now betting on developing their digital currency, which would serve as a unique means of buying and financing the sector’s offerings.

There are numerous advantages to financing with crypto that businesses agree on, such as being a legal and secure method since every move is password-blocked. Additionally, the system is built on trust since data can’t be accessed, modified, or used for any purpose by governments, banks, and other financial institutions.

Furthermore, third parties like banks and government bodies are no longer used since blockchain conducts all that work, serving as a solution to reduce business taxation obligations.

Why would tourists choose to use crypto when bank-issued currencies serve every purpose?

For a long time, tourists have only relied on their physical money until nations have slowly become cashless. There are still places where you can pay with cash, but the trend is losing ground to digital payments. With crypto, you don’t have to worry about finding currency exchanges or dealing with high fees. You’ll likely find a Bitcoin ATM in any region you visit to change your desired amount of cash into BTC. The money is then sent to your digital wallet in seconds at the current market rate, and you can go on to use it.

Besides the facilitation of quick and effortless payments, transactions, and exchanges, there are several other essential motives behind Bitcoin traveler’s choice to use this payment method, including:

• The system makes transactions pseudonymous, as your identity and Bitcoin address can’t be associated. However, while transactions can’t be tracked back to you through your name, you will have the address registered on the ledger as all transactions stay public there, meaning your transaction history and address are visible.
• With the growing prevalence of crypto, numerous companies offer discounts and all sorts of incentives to profit from the cheaper way of transacting compared to the fees charged by card processors. This can be a profitable approach for both parties involved.
• You remove the need to deal with foreign exchanges every time you cross a country’s borders and enjoy the freedom of keeping all of your travel money in a digital wallet.
• Journeying with your bank isn’t risk- or threat-free. Carrying wealth in a digital wallet makes you less susceptible to theft losses and makes transaction data impossible to modify.
• Worldwide accessibility means the freedom to access funds and make payments from anywhere without paying astronomical fees or currency restrictions.

The travel sector’s position on digital currency regarding cross-border payments

The scenario of crypto and blockchain technology radically transforming the tourism and travel industry is more feasible than ever, given how much traction they have gained and the many real cases arising and being explored. Mani hotels and booking platforms now take crypto, ranging from the Soneva in Thailand and the Maldives to Palazzo Versace Dubai to The Pavilions Hotels & Resorts.

According to a study from Global Data, a data analysis and forecasting company, Cryptocurrencies in Travel and Tourism, among the numerous factors behind the embracement of crypto payments are speed and efficiency, improved fraud prevention, and better loyalty programs. Crypto wipes out delays, fluctuations, and third parties like clearing houses, payment processors, and banks. Additionally, minimizing the involved transaction fees and enabling P2P blockchain transactions translates to minimized hotel expenses and financial economies for tourists.

Furthermore, the recent data breaches and cyber attacks encountered by large hotel giants like Marriott International draw attention to the importance of removing every single point of failure in systems that store data. In light of the growing attention to cybersecurity, blockchain is the right solution, as it distributes data across a node network and removes any chance of a breach.

However, many other chains of hotels and accommodations, such as the smaller or local ones, remain somewhat reluctant to accept and integrate the new payment method into their systems. According to the same GlobalData analysis, the sector’s volatility compared to traditional fiat money, regulatory uncertainty, security concerns, and the newness of blockchain technology are the culprits behind the limited acceptance rates.

Last words

Crypto empowers travelers to purchase almost anything that central bank money can, so it stands to reason that its appeal draws more and more interest. Despite the advantages, there seems to be a long way to go until this payment method becomes mainstream and ubiquitous, and the benefits for both businesses and customers outweigh the drawbacks.