The travel industry faces a unique set of challenges. High booking values, frequent cancellations and customer demand for flexibility mean that traditional payment systems are no longer enough.
At Raimac, we believe there is a better way.
What are Programmable Payments?
A programmable payment is a digital payment with instructions built in. Rather than being a fixed one-off instruction, it can carry simple rules such as:
- Take a 20% deposit today and collect the balance in instalments before departure
- Release funds to the hotel only when the guest arrives
- Spread the cost of a holiday around the traveller’s payday cycle
These instructions travel with the payment across existing rails such as Visa, Mastercard and Open Banking. No new infrastructure is required and there is no consumer credit risk.
Why Travel Needs Them
Travel is unlike most industries:
- Average booking values are high, driving up abandonment rates at checkout
- Refunds and cancellations are common, often leading to disputes
- Travellers budget carefully for holidays, making flexibility in payments increasingly important
Programmable payments help solve these challenges by:
- Increasing conversions with flexible deposit and balance schedules
- Reducing risk by tying payment release to real-world events such as check-in
- Building trust with transparent plans and no hidden fees
- Lowering operational costs through automated collections and reconciliation
Real-World Use Cases
- Package Holidays: Secure with a deposit, balance taken in instalments before travel
- Flights: Initial payment on booking, balance collected before departure
- Accommodation: Deposit on booking, balance only taken at check-in
- Tours & Events: Payments triggered only once the service has been delivered
Why Raimac
Raimac makes programmable payments possible through technology that is:
- Simple to Connect: Easy software integration alongside existing OTA and travel systems
- Provider Controlled: Travel companies set the rules, customers configure within them
- No Credit Risk: Flexible instalments without debt
- Proven: Already working with payment providers such as ISX and Cashflows, with wider applications across industries
The Bigger Picture
For most people, a holiday is the largest discretionary purchase of the year. Flexible, fair payment options can make the difference between a completed booking and an abandoned cart. They can also ease financial stress by aligning costs with how people actually budget.
Programmable payments give online travel agents and travel providers the ability to meet rising expectations, improve cash flow, and reduce operational risk. At Raimac, we are building the infrastructure that makes this possible today.
