Payments: The Invisible Profit Killer in Modern Hospitality
Above, the variety of methods expected by customers is “particularly demanding” for hotels, says Sean Fu, senior vice president, Greater China, Global Payments (right)
By Sean Fu, 02 Apr 2026
Outdated payment infrastructure is robbing hotels of profits and a guest experience differentiator. Sean Fu, senior vice president, Greater China, Global Payments, offers three ways for hotels to be up-to-date
The global hotel industry generated close to $975 billion in revenue in 2024, with online travel sales projected to account for more than 75% of total hospitality revenue by 2029. Cross-border payment volumes have surged well past pre-pandemic levels, up 141% for Visa and 155% for Mastercard. Yet for many hotels, the infrastructure handling those payments is inadequate for the complexity this growth brings and the customer experience delivered.
The cost of standing still
Globally, hotels are spending an estimated $21 billion annually on payment processing. From 5% to 6% of hospitality revenue is lost to fraud, with card-not-present transactions the dominant mode for online bookings accounting for 65% of those losses. Chargebacks have risen by more than 30% year-on-year, and half of those are guest-initiated disputes rather than genuine fraud, with numerous reports of chargebacks being initiated in place of refund requests.
Reconciliation inefficiencies also cost the industry upwards of $1.5 billion a year, with hotelier finance staff losing seven hours per week on manual payment matching. Nearly a third report that manual reconciliation is actively delaying their growth.
Payment fragmentation – a growing challenge
What makes the payment landscape particularly demanding for hotels serving international guests is the variety of methods expected by their customers. A hotel in Hong Kong may need to accept traditional card payments alongside QR code wallets such as Alipay and WeChat Pay, contactless NFC transactions, bank-linked installment plans across multiple financial institutions and cross-border mobile payment methods. In the Hong Kong market alone, operators may need to support up to 28 distinct payment methods to meet guest expectations.
This fragmentation poses an increased risk of abandonment if not delivered seamlessly, impacting commercial performance. Research shows that 74% of travelers will abandon a booking if their preferred payment method is not available at checkout, and 91% expect to see prices displayed in their home currency. For hotels competing with online travel agencies that have already invested heavily in flexible checkout experiences, failing to meet these expectations means losing bookings at the final hurdle.
Three first steps
For hotel operators looking to solve the payments puzzle, market insights point to three areas that offer the most immediate return.
The first is payment consolidation where hotels consolidate service providers, negotiate lower card fees at the corporate level and automate reconciliation workflows to eliminate manual overhead.
In practice, this means moving away from managing multiple acquiring relationships and disconnected systems towards a unified infrastructure capable of handling card, contactless, QR code and digital wallet transactions through a single platform.
Cloud-based transaction reporting – already available from providers operating in markets such as Hong Kong – can replace manual processes that give hotel operators real-time visibility over settlement timelines and transaction data.
The second priority is tokenization. Network tokenization is where sensitive card credentials are replaced with secure digital tokens which are proving to be far more than a security measure. Visa reports 4% to 4.6% higher approval rates on tokenized transactions, while Mastercard cites an average 2.1% authorization lift.
Tokenized payments also see approximately 30% less fraud. For hotels that depend on repeat bookings and stored guest payment details, tokens offer the added benefit of automatically updating expired card credentials, reducing failed transactions and checkout friction. It is expected that by late 2026 network tokens will become the default for any platform storing cards – not just for security, but greater approval rates.
The third is embracing alternative payment methods such as Buy Now, Pay Later (BNPL). BNPL adoption across major OTAs has risen 50% year-on-year, with one in five US holiday travelers now using BNPL to book trips. Within our region, Australia has one of the highest BNPL adoption rates in the world, with 25% of consumers adopting this payment method at the online booking stage.
BNPL has been shown to increase average order values by up to 60%, making it not just a guest convenience but a genuine revenue driver. In Hong Kong, multi-bank installment plans spanning three to 36 months at rates as low as 0% are already available across six partner financial institutions, pointing to established demand for flexible payment options in the region. Indeed, hotels that don’t integrate regionally relevant providers risk higher drop-offs and losing share to hoteliers and OTAs offering BNPL.
The window is closing
The hospitality industry’s digital transformation has been underway for a number of years, with all elements of hotel operations disrupted by technological advancements that offer new frontiers to compete. Yet, back-of-house payments inefficiency continues to rob hotels of a key front-line differentiator that can dramatically enhance the customer experience they deliver.
Hotels that continue to treat payment infrastructure as a static cost centre, rather than a dynamic part of the guest experience, risk falling behind. Those that consolidate, tokenize and offer BNPL will be best placed to grow profitability and customer loyalty.
About Global Payments
Global Payments (NYSE: GPN) is a leading payment technology and software company that powers commerce for businesses of all sizes worldwide. It helps businesses grow with confidence by delivering innovative solutions that enable seamless payment acceptance, smarter operations and exceptional client experiences – online, in store and everywhere in between. With its global reach, local expertise and scale, Global Payments manages trillions in payments volume and billions of transactions across more than 175 countries. Headquartered in Atlanta, Georgia, Global Payments is a Fortune 500® company and a member of the S&P 500. Learn more at company.globalpayments.com.