Travel managers have to now have an ability to dip into multiple business areas. The Corporate Manslaughter Act thrusted duty of care into the spotlight; GDPR is making everyone assess data privacy and new entrants, new markets and the PSD2 directive mean an increased focus on payments.
In a way the changes in how we pay have been there for years; Wendy Ward VP, marketing and communications of UATP believes it was the launch of PayPal that revolutionised the sector and that was founded back in 1998. When you consider that people in developing countries and younger generations aren't using cash, and how companies like Uber make pay so easy, it won't be long until 'invisible payments' will be the norm.
There's then the question of cost. UATP CEO Ralph Kaiser told the ACTE/CAPA audience: "Travel buyers have to consider that the regulatory environment and rebates might not be there forever. They can implement virtual or blockchain, but the supplier might charge more."
So, buyers need to carefully consider what avenue to go down. "Think about whether all forms are needed, it's a balance game," Ward told delegates. "Talk to procurement, HR etc and find the pain points [with travellers in mind] - then go to the supplier with what you need."
New payment methods can also transform back office processes and provide instant settlement, but this means different set-ups and business models. As Paul Raymond of Conferma explained at Business Travel Summit Amsterdam, "Airbnb and Uber don't have payment costs so can focus on customer service."
For the more traditional suppliers, the new PSD2 regulation is creating new challenges. TMCs and card providers at the GTMC conference in the UK say some elements of PSD2 legislation are difficult to implement under current processes.
For example, from July 2019 the person using a card will have to authenticate a payment by proving two of three things: a pin, mobile/card and/or a fingerprint/behavioural data such as entering a code sent by SMS to their phone. If a TMC batch-processes transactions at midnight, will the traveller receive the authentication SMS at midnight, when it might be too late?
In another example, if the trip is organised by a booker, the fingerprint would not be the same as the traveller. Claude Walter of AirPlus, speaking at the Amsterdam Summit, says B2B payments "don't technically need the new authentication procedure, but if it's required then I'm not sure if corporate and lodge cards can happen".
There's a lot for all parts of the travel industry to consider as the pace picks up. Sweden could be cashless in the next four years; the majority of its banks don't even keep cash on hand. And 2015 was the first year there were more debit transactions than cash in the Netherlands.
It's another area for not just the travel sector to consider, but everyone.