Expedia partners with Masterpass for mobile payments growth
Online travel giant Expedia is partnering with MasterCard’s mobile wallet and buy button service Masterpass, letting customers pay with the service on its sites, including Orbitz and Travelocity. This could be a big win for both platforms: Masterpass will get access to a huge new market, and Expedia users will find mobile transactions much easier.
The benefit of services like Masterpass is that they remove Ecommerce “pain points”. Purchase conversion rates on mobile phones have remained low over the past few years because paying for services on mobile just isn’t that easy. The friction of entering card details and being driven to new payment portals is frustrating to mobile browsers, and Masterpass makes it far easier: you just press a button. By storing payment details in an online wallet, Masterpass allows online shoppers the same kind of convenience they get on dedicated Ecommerce sites like Amazon.
While Expedia will be hoping that this drives mobile payments higher, Masterpass also stands to profit from the partnership. The travel sector is slowly entering the world of mobile commerce: in the second quarter of 2016, 27% of all travel bookings were made on mobile browsers, representing a 13% rise from the previous year. Expedia’s massive business, which processed $26.1 billion in the first quarter of 2017, could be a lucrative market for MasterCard.
Dominion holds Expedia and MasterCard in its Global Trends Ecommerce Fund.
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