The decision to book travel or walk away increasingly happens at the checkout screen. A joint report from PYMNTS Intelligence and Marqeta, based on a survey of 30 U.S. firms, examines how digital wallets and other embedded finance tools are shaping revenue, customer engagement and operational performance across the industry.
Embedded Finance Moves to the Center of Travel Commerce
Embedded finance has moved from a supporting role to core infrastructure. The report shows that 93% of travel companies now offer at least one embedded finance capability, with digital wallets among the most common. As the data shows, firms tie these tools to higher conversion rates and fewer abandoned bookings, along with gains in efficiency and faster product rollout.
The shift reflects how travel platforms are being built. Search, booking, payments and loyalty are being woven into a single flow. Keeping the customer inside that flow reduces friction and creates more opportunities to capture spend.
Depth Matters More Than Expansion
The next stage is not about adding more features. It is about improving the ones already in place. The report finds that 65% of firms offering digital wallets are highly interested in enhancing those capabilities rather than introducing new ones.
This approach produces more usable data and clearer insight into customer behavior. Nearly 6 in 10 companies that PYMNTS surveyed say access to better customer data is a primary reason to invest further in embedded finance, while a similar share cites competitive advantage. The returns are visible.
The impact is significant, as 57% of firms report higher checkout rates, and 70% of those with wallets point to improved efficiency and lower churn.
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Providers are making targeted improvements. They are refining wallet interfaces, tightening loyalty integration and smoothing checkout steps. The objective is to remove hesitation at the point of payment and to encourage repeat use.
What Travelers Expect From Wallets
Consumer expectations are shaping these decisions. Travelers want payments to be immediate and unobtrusive, with rewards applied automatically and credentials stored securely. Wallets that connect booking, payment and loyalty functions meet those expectations.
The report indicates that wallets perform best when they extend across the travel life cycle. They are used during search and booking, but also during the trip and after it ends. That continuity supports repeat engagement and reduces the need for customers to reenter payment details or navigate outside the platform.
There is also a commercial effect. Embedded wallets give travel firms a clearer view of customer preferences and purchasing patterns. That information can be used to tailor offers and refine pricing, which in turn supports revenue growth.
Partnerships, Infrastructure Shape Execution
Execution depends on partners. Travel firms are looking for providers that can integrate easily, support customization and deliver strong fraud protection. The report notes that 79% of firms prioritize advanced risk capabilities when selecting vendors.
Half of the firms surveyed say that strong cross-functional collaboration with partners is a measure of success. That reflects the complexity of embedded finance, which requires coordination across technology, compliance and operations.
The direction is settled. Digital wallets are becoming part of the underlying architecture of travel commerce. Firms that refine these tools, rather than expand them indiscriminately, are better positioned to convert demand into completed bookings and sustained customer relationships.
At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.
