Trip.com and Checkout.com have joined forces to introduce local acquiring and digital card payment services in selected international markets.
The collaboration with Checkout.com will kick off with digital card payments in the UK, Japan, and Saudi Arabia. Plans include a step-by-step expansion into North America, Europe, Australia, and New Zealand.
A key aspect of this partnership is Checkout.com’s local acquiring infrastructure. This setup aims to enhance payment acceptance rates and lower operational expenses in each targeted market. Local acquiring often leads to higher authorization success rates compared to cross-border transactions, a critical factor for managing global transactions.
Trip.com has already implemented Standalone 3DS, an authentication method that is decoupled from the payment authorization process. This approach enhances security and authentication efficiency while maintaining a smooth booking experience. Moving forward, the company intends to explore other Checkout.com features such as Vault for secure card storage, Identity Verification, and issuing solutions.
In addition to credit cards, both parties are planning to integrate local payment methods like e-wallets and bank transfers, catering to diverse consumer preferences across different markets where Trip.com operates.
Context of Expansion
This partnership underscores the evolving landscape in the travel payments sector. Platforms for international travellers need to address a complex array of payment choices, regulatory standards, and currency issues. Optimizing acceptance rates and embracing local payment methods are crucial as these platforms enter regions with unique payment ecosystems, such as Japan (with significant e-wallet usage) and Saudi Arabia (where the payments landscape has seen rapid evolution).
Checkout.com’s role in this partnership is positioned as a strategic provider of flexible payment infrastructure for Trip.com’s growth. A representative from Trip.com Group highlighted that the ability to customize payment strategies based on local requirements was a major factor in choosing Checkout.com’s scalable technology.
