The expanded partnership aims to modernise payment processes, enhancing efficiency in B2B transactions worldwide
Mastercard is expanding its partnership with Agoda in a move aimed at B2B payments in the travel and tourism sector. This collaboration seeks to address the long-standing challenges associated with B2B transactions, including legacy payment processes and the need for innovation beyond traditional card payments.
Agoda’s digital travel platform, available in 39 languages, offers deals on a global network of 3.9 million hotels and holiday properties, in addition to flights, airport transfers, and more. The company is part of Booking Holdings and employs over 6,700 staff in 31 markets, with a strong focus on adopting best-in-class technology.
The travel industry’s B2B payments landscape has often lagged behind consumer payments, relying on manual and time-consuming methods such as paper invoices. Recognising the need for modernization and greater efficiency in these payment systems, Mastercard and Agoda are taking steps to streamline transactions between digital travel platforms, hotels, airlines, suppliers, and vendors on a global scale.
Digital travel platforms now account for approximately 40% of global travel bookings, playing a crucial role in the growth of airlines, hotels, tour operators, railways, cruise lines, and other industry partners, according to the Pacific Asia Travel Association (PATA). This expanded partnership is coming at a time when the demand for B2B payments in the tourism industry is on the rise, with Agoda and Mastercard hoping to address that gap and drive this initiative forward.
Through the exclusive issuance of Mastercard virtual credit cards, Agoda will be able to make and receive B2B payments globally wherever Mastercard is accepted. The focus will also extend to enhancing the overall travel experience, including providing timely and personalised offers to Agoda customers using insights from Mastercard’s data. Joint marketing efforts are planned to further elevate customer satisfaction, and loyalty rewards will be offered when booking with Agoda using a Mastercard card.
Yunsok Chang, Executive Vice President, Market Development, Asia Pacific, Mastercard, expressed his enthusiasm for the partnership expansion, stating, “Mastercard has been longtime partners with Agoda and is proud to expand on this decade-long partnership that harnesses the power of collaboration to simplify B2B payments and fortify defenses against fraud, all while enhancing the customer experience and fostering greater loyalty.”
Mai-Linh Bui, Chief Financial Officer at Agoda, also conveyed her excitement, saying, “I am delighted to announce the expansion of our strategic partnership with Mastercard, and together, we are redefining the landscape of business-to-business (B2B) payments within the travel and tourism sector.”
