By Philipp Buschmann, Co-Founder and CEO of AAZZUR
In the world of travel, convenience is king. From the moment we start dreaming about our next vacation to the time we finally sink into that beachside lounge chair, we want everything to flow smoothly. But the process of booking travel can sometimes feel like a series of hurdles: finding the right flights, choosing accommodation, planning activities, and—of course—paying for it all.
Enter embedded finance, a behind-the-scenes powerhouse quietly transforming the travel industry, making our journeys easier, more flexible, and more enjoyable. You may not realise it, but embedded finance is working in the background from the moment you start browsing for flights to the last tap of your card when buying souvenirs.
Making Travel Affordable and Accessible
One of the biggest shifts we’ve seen in travel thanks to embedded finance is how it’s made it more affordable and accessible to a broader range of people. Traditional travel often involved paying for everything upfront, making large trips a financial burden that many couldn’t shoulder. However, embedded finance has changed that with the rise of flexible payment options directly integrated into the booking experience.
You’ve probably encountered this when booking a flight or a hotel and seeing an option to “buy now, pay later.” With these options, travellers can spread the cost of their trip over several months, paying in manageable instalments rather than in one lump sum. This isn’t just a convenience—it’s a game-changer. Families who might have had to save for months before a vacation can now take that trip sooner, spreading the cost over time without stress. Travel has become more democratised because of this.
And it’s not just about convenience. Companies, like Hopper, offer pay freezes and instalment payments through partnerships with Affirm for instance. For a small fee, customers can make flight and hotel booking much more affordable and hassle-free. There’s no need to apply for loans or deal with third-party credit providers. Everything is handled seamlessly while you’re booking your flight or accommodation. You can choose a payment plan with a few clicks, and then you’re back to daydreaming about your upcoming trip.
Smoothing Out the Travel Experience
Embedded finance isn’t just about making travel more affordable – it’s also about simplifying the entire experience. Remember when travel meant juggling multiple currencies, managing cash, or trying to figure out the best way to pay for things while abroad? Those days are fading away as embedded finance continues to improve how we spend money during our travels.
Take travel cards, for example. These modern travel tools are embedded with technology that allows you to automatically pay in local currencies with low fees, or even avoid foreign transaction fees altogether. You simply swipe your card or tap your phone, and everything happens behind the scenes, saving you from the headache of exchange rates and extra charges. American Express are a notable company that leverages consumer loyalty with personalised perks like airport lounges and free upgrades, that makes travel feel premium rather than painful.
Even better, these cards are often linked with other services like travel insurance or automatic budgeting tools that help you stay on top of your expenses while you’re on the road. You don’t have to think about it—your travel finances are handled automatically, leaving you free to enjoy your adventure.
Enhancing Customer Loyalty
Another way embedded finance is transforming the travel industry is through loyalty programs. Think about those points you rack up when you book through certain platforms or use specific credit cards. Embedded finance makes these loyalty programs smarter and more integrated into the overall travel experience.
For instance, some airlines have partnered with financial services to embed loyalty rewards directly into their payment systems. Air France did this with Fly-Now-Pay-Later, enabling passengers to spread the costs of each ticket. Furthermore, instead of simply accumulating points on flights, you can earn rewards while you’re shopping, dining, or booking accommodation through partnered services—all without lifting a finger. In some cases, you can even redeem those rewards in real-time during your trip, whether it’s upgrading a seat or splurging on a special dinner. This system turns loyalty programs into something more dynamic and useful, adding real value to your travel in a way that wasn’t possible before.
Hassle-Free Business
While embedded finance has clear benefits for travellers, it’s also been an eye-opener for the companies that make travel possible. Travel agencies, airlines, and accommodation providers are now using financial technology to streamline their operations.
For example, Railsr partnered with WanderWise Travel who were looking to specialise their tailored holiday packages. They wanted to improve customer engagement and enhance their relationship with more flexible options. In response, WanderWise upgraded their BNPL infrastructure, integrated insurance at the point of purchase and created co-branded travel cards so customers could still experience flexible payments abroad rather than just when booking. This direct connection also speeds up transactions, helping businesses receive payments more quickly and reduce delays in confirming bookings.
Additionally, many travel companies are embedding tools like insurance and lending products into their platforms. This is a win-win—companies can offer travellers everything they need in one place, and travellers get a frictionless, one-stop-shop experience when booking trips.
What’s Next?
As embedded finance continues to evolve, the travel industry will likely keep finding new ways to make our journeys smoother, more affordable, and more tailored to our personal preferences. Soon, we might see even more seamless integration between financial tools and travel experiences, from using digital wallets to pay for everything on your trip to leveraging AI-driven insights to help you plan and finance the perfect holiday.
In the end, embedded finance isn’t just about making payments more convenient—it’s about creating a world where travel is more accessible, enjoyable, and connected. And as these technologies continue to improve, they’ll keep transforming the way we see and experience the world.
About Philipp Buschmann, Co-Founder and CEO at AAZZUR
Philipp Buschmann is co-Founder and CEO at AAZZUR, a one-stop-shop for smart embedded finance experience. Recognised as a rising star in the FinTech space, AAZZUR’s mission is to build profitable banking whilst at the same time empowering consumers to have access to better informed financial choices.
Philipp is a serial entrepreneur with extensive experience of working in Challenger Banking, Financial Services, IT and Energy across the world. He took one of his businesses public – Ignis Petroleum was publicly listed in the US and Germany.
Having started as a developer in Financial Services, Philipp has first-hand experience of the banking revolution from both a technology and financial perspective. His interest in behavioural economics helped inspire AAZZUR’s revolutionary work on customer centricity in banking.
Philipp holds an MBA from the London Business School. He is passionate about entrepreneurship and loves exchanging ideas, insights and discussing FinTech’s future. He has spoken at major Fintech events including Money 20/20, MoneyLive, Finovate, Fintech Matters, and the Future of Retail Banking.
