Mastercard deepens ties with Booking.com for enhanced travel benefits

Friday, January 26, 2024

Mastercard has unveiled enhancements to its ongoing collaboration with Booking.com, aimed at streamlining B2B travel payments and eliminating payment friction for travel partners. The partnership focuses on expediting the adoption of Mastercard Virtual Cards, offering increased flexibility, security, and convenience for travel partners.

The Virtual Cards, highlighted in a company press release, promise heightened transaction visibility through automated reconciliation, improved business payment efficiency, and a 30-fold reduction in fraud risk compared to traditional payment cards. Notably, they establish traceable links between bookings and payments to third-party suppliers. Additionally, travel agencies and suppliers can effortlessly monitor and reconcile payments, benefiting from Virtual Card features like flexible pricing, financing options, and card payment guarantees, ensuring a more secure payment experience for all stakeholders.

Beyond payments, the collaboration strives to deliver payment innovation and enhance the digital experience for Booking.com’s users and travel partners. Furthermore, it supports Booking.com’s Pay by Booking model, aiming to streamline travel payments, enhance efficiency, and bolster security. This initiative facilitates tracking and reconciliation of payments, leveraging the advantages of Virtual Cards.

The partnership envisions the creation of novel financial services for travel partners by utilizing card rails and other avenues for frictionless payments. Additionally, it aims to provide valuable data insights to support partners’ business strategies and cater to the evolving needs of travelers. Ultimately, the collaboration seeks to support the expansion of Booking.com’s marketplace by investing in innovation to address diverse travel verticals, such as air, car rental, and experiences.

Mastercard expressed confidence that this collaboration would simplify the buying and selling of travel-related products and services on Booking.com, contributing to the seamless functioning of the travel ecosystem throughout Europe.

In a related development, Booking.com previously partnered with Affirm in September 2023, offering improved and flexible payment options for travelers. Additionally, Booking.com announced advancements, including a new AI trip planner, earlier in the same year, showcasing the company’s commitment to leveraging technology, particularly in the Chinese market, to enhance the travel planning experience globally.

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