Top 10 Hotel Payment Options for 2025

This means your customers' expectations have grown substantially, and if your hotel isn't adapting to this changing behaviour, then you’re lagging.

Today's guests demand 3 things from you -

• diverse payment methods, 
• secure transactions and 
• hassle-free payment experience. 

If you've been doing this, you're on their good list. 

Let's talk about the top 10 hotel payment options you should know to provide a smooth payment experience for guests. 

Top 10 payment options that hoteliers should offer

From check-in to checkout, the right payment method can make all the difference.  

When hoteliers limit payment choices, it creates friction for guests that prevents them from booking your property. 

However, when you offer flexibility in payment methods, guests are more likely to make a reservation and spend more money on experiences.  

This makes your guests happy and, at the same time, raises your average booking value.  

That's why providing alternative payment choices is crucial for you so that they won’t go anywhere.

Some of the top payment systems are given below-  

1. Credit cards

The most common and old payment method that hoteliers have been offering for a while is credit cards. Some of the commonly used credit cards include Visa, MasterCard, American Express, Discover, etc.

When making payments using credit cards, people are likely to spend 2x money as compared to cash. 70% of people use credit cards more often than other payment methods.

If you're not accepting credit cards as your go to payment method for reservations, then you're losing a high percentage of travellers.

Generally, customers prefer to make reservations using credit cards because they provide a spending limit so they can manage bookings.

Best part? They get the flexibility to make payments as and when they want especially when they run out of cash.

Hoteliers can offer different types of credit cards to guests, which are as given below-

• Card present – The guest swipes the credit card physically at the hotel POS. 
• Card not present – Guest makes payments for online bookings through the hotel's site or third-party booking platform. The cardholder and the card are not present physically.
• Contactless – Guests make contactless payments (such as scanning a QR code, mobile wallets or placing the card on a reader) when booking a stay. For contactless payments, no PIN is required to mark the transaction as complete. 

2. Debit cards

Debit cards are the most straightforward payment option available to hoteliers. Guests simply make the payment for their stay, and the amount is deducted immediately from their bank account.

It's obvious that every guest uses a debit card, but not every one of them might have a credit card.

3. Bank transfers

Generally, guests don't prefer transferring payments through bank transfer. But the ones who don't have credit cards can go with this payment option, especially if that involves sending a large amount.

Unlike card-present transactions, bank transfers are considered the secure method of payment in hotels.

4. Buy Now, Pay Later (BNPL) 

Guests these days intend to choose hotels that offer a buy now, pay later payment option. This way, guests can reserve the room now but pay it later in 4-5 interest-free instalments. 

BNPL generally appeals to Gen Z travellers when they can't pay the full amount upfront, but they can lock their spot for future stays. 

This creates a competitive advantage for you to get more bookers in your favour.

When the hotel didn't ask for the card details of the traveller, the cancellation rate was around 30%. 

But when the hotel offered a prepayment booking option, the cancellation rate went down to 10%. 

Flexible payment options are always a game changer for hoteliers, but if used strategically, they can give – more bookings and more revenue. 

Note – BNPL is one of the emerging payment trends that hoteliers are adopting these days. It's a deal breaker for bringing more guests to your property because 35% of guests never want to pay the full amount at the time of booking. 

5. Loyalty points/reward points

Generally, hoteliers offer reward points to guests who used to travel frequently for business or leisure purposes.

The more points guest has, the more they can redeem to reduce their expenses and get other benefits packed with it - 

Room upgrades, late checkout facility, access to lounge and free dining experience.

Luxury hotels such as Hilton, Hyatt and Mariott provide guests with perks such as gift cards or discounts on premium services. That keeps guests coming back, and such loyalty programs are exclusive to existing guests.

6. Digital Wallets

Digital wallets are becoming mainstream as guests prefer booking a hotel room using their preferred wallet, such as Apple Pay, PayPal, Google Pay, Samsung Pay, etc.

These payment methods are available both in-person and online and offers enhanced security to guests through biometric scan and fingerprint authentication.

No debit card is required; a mobile app is enough to make payments with few taps and clicks. Usually, the younger generation chooses digital payments as they're more comfortable using these, and they love the convenience they provide.

In 2025 and beyond that, guests will use more of digital wallets not as a payment option anymore; they will use them to unlock their rooms by pointing their devices at smart locks. No more traditional room keys are required.

7. Online payment gateways

Online payment gateways, such as Stripe, PayPal, etc, allow hoteliers to accept payments from guests regardless of whether the booking is made on the hotel's website or third-party booking platform.

For accepting direct payments from guests, make sure to invest in a booking engine that has a secure payment gateway integration.

8. Cryptocurrencies

As digital technologies and payment methods are evolving, cryptocurrency is gaining huge momentum these days.

Till today, cryptocurrencies are not widely accepted everywhere, but still, many hotels and resorts have started using Bitcoin and Ethereum to attract young travellers and tech-savvy people.

Travel booking sites such as Travalana.com accept cryptocurrencies from travellers. 

Downside? The only challenge that hoteliers can face when offering this payment method is that its prices can fluctuate rapidly. Let’s say whatever price the guest has had to pay for the night stay changes eventually after a few hours. 

Palazzo Versace in Dubai, a 5-star property, offers world-class amenities to guests with a blend of impeccable service. This lavish property has been accepting payments in cryptocurrencies such as Bitcoin, Ethereum and BNB. 

Whatever guests want to pay, for instance, a spa treatment or a food dining experience, hotels want guests to use send payments in crypto mode.

9. Gift cards

Hotels can earn more revenue from guests by offering gifts cards in return for memorable stay experiences or spa treatments. By adding gift cards as a payment method, guests can purchase experiential gifts for their loved ones.

Hoteliers will not just accept gift card transactions; they will now track the gift card sales to track the purchasing patterns of travellers.

10. Regional payment methods

Though localized payment methods won't be accepted everywhere, these are accepted in specific regions. If you want to attract international travellers, then it requires an understanding of regional banking systems and partnering with local banks. 

Every traveller wants to choose the payment method they’re familiar with and if a hotel provides them flexible payment methods to make reservations. They're more likely to book a spot at your property.  

Think about it for a moment – if you’re a European traveller, you want to see the booking rates in Euros, not in dollars.  

Local currency = High conversions 

Here are a few of the localized payment methods which are as given below-

IDEAL is used in New Zealand, SEPA in European countries, SOFORT in Germany, Interacin Canada, Oxxo in Mexico and Prompt pay for making localized payments. 

Do you need to offer multiple payment options to guests?

Yes, it's always good to offer flexible payment options to guests. This not only gives them a choice to pay for hotel bookings in their local currency, but it's also a source of revenue generation for your hotel. This impacts your bottom line as well.

But if your property doesn't have flexible payment and booking options, then guests are more likely to choose your competitors over you.

The more diverse payment options you offer to your guest, the higher the chances of converting a potential guest into a booker.  

Here's how flexibility in payment methods can provide multiple benefits for your hospitality business -

• A smart booking engine allows hoteliers to accept payments in multiple currencies.

Make sure that your website should be integrated with a booking engine to get more direct bookings. This reduces your dependence of relying on bookings for OTAs.

Also, if your booking engine accepts reservations in multiple payments, such as localized payment cards and mobile wallets, it attracts travellers from local regions.

• Today, guests want to choose the payment method of their choice, so if there's friction in making reservations, then it prevents them from booking your property. Plus, they don't have enough time to wait for the card to be processed.
• Usage of traditional payment methods is prone to cyber-attacks, and misuse of such information makes guests disappointed. 
• Instead, there should be a secure payment gateway, and everything should be automated. 
• Adding newerpayment methods (BNPL) in your website booking enginecan attract younger generation guests especially Gen Z.It's important to tailor your payment methods for such guests aged 18-24 as they're in more need of booking now, paying later option as compared to guests of older generation.

As you can see from the table below, guests falling in the age of 18-25 prefer to book a property if they get a BNPL facility.

But it's not the same with guests aged 54+; they're more comfortable with paying through traditional credit cards and digital payments. 

• When you give guests the choice to pay on their own, then it leads to fewer errors and more settled transactions.

How can BOTSHOT help you implement payment systems for your hotel?

Over the years, online bookings have grown drastically, so this means you should prepare your hotel for implementing such payment systems and processes. 

Today's guests prefer convenience over anything, and if your hotel isn't digitally ready, then customers are going to take a toll on you. This results in lost travellers and low revenue share.

Here's how BOTSHOT can help you set up your online payments so you can serve travellers all around the corner - 

• Booking engine

What if your guests book a property online (through your website)?

But that's possible when you integrate your booking engine with secure payment gateways such as Google Pay, CC Avenue, ICICI mobile, etc.

Consider these payment gateways as an online terminal which streamlines your payment processes. 

Once the customer makes a reservation, the payment gateway will authorize their credit card details. 

These gateways will charge a certain percentage on each booking made. 

Best part? Managing online reservations has become easy, like a breeze, as you don't have to rely on third-party OTAs.

Less reliance on OTAs = More revenue share = More profits 

• PMS with the eFrontDesk

Our PredictoPMS comes with an eFront Desk, meaning guests can do contactless check-in, upload documents digitally, take the room keys and head over to the hotel room. This puts less pressure on front desk staff, and they can better focus on enhancing guest experience.  

With contactless check-in software, hoteliers like you can promote your offerings and do more upsells and cross-sells to increase your revenue.