Klook takes off with payments optimization and revenue boost

When Klook first started in 2014, the priority was getting the business off the ground. Only when their business started gaining traction, did their focus shift to payments and the exponential growth they can achieve with Adyen.

Another challenge Klook faced was keeping up with changing customer expectations. "As customer behavior changed and demand shifted from international to domestic travel, there was an increased emphasis on local payment methods," says Michelle. Klook needed to offer more alternate payment methods beyond major credit cards.

One (integration) and done

Payments are complex, with a fragmented ecosystem that involves multiple parties. This fragmentation creates complexity that costs Klook both time and money. However, with one integration to Adyen's single platform, Klook is able to consolidate their end-to-end payments flow into a single solution, enabling them to boost both operational efficiency and the customer experience they can provide.

Offering a multitude of internationally recognized and local payment methods

With a single integration, Klook can unlock both internationally recognized payment methods like major credit cards as well as alternate payment methods like EFTPOS.

According to Adyen's consumer research, 55% of consumers will abandon their online cart or leave the store if they are unable to pay how they want. By offering a more comprehensive range of relevant payment methods, Klook can offer a better checkout experience to their customers. "We want payments to be as easy as possible – we don't want the transaction to fail at the last moment for our customers," Michelle says. "A failed transaction can disrupt our customers' experiences and travel plans."

Adyen’s presence in Klook’s key markets made it more seamless for them to roll out different local payment methods. They now benefit from offering both major credit cards and local payment methods to their customers.

And Adyen's one platform solution makes offering the right mix of payment methods much easier for Klook.

Klook also enjoys a direct connection with major credit card schemes via Adyen. "Adyen keeps us up to date on all relevant scheme updates," Michelle explains. "For example, if a scheme is going to roll out a specific feature that will benefit us, our account manager will inform us."

Going global with local acquiring

Processing cross-border transactions can get complicated, but not for Klook. "Adyen has a presence in many different markets with local acquiring licenses," Michelle explains. "With Adyen's local acquiring, we can easily go to market, as long as our teams are aligned."

With local payment processing, Klook can get the most out of each transaction from the vital markets in which they operate. Not only is Klook able to lower business costs with local acquiring, but they are also able to serve their customers better by letting them pay with trusted payment methods and save money. "With local acquiring, we can help our consumers avoid cross-border transaction fees," Michelle says.

The travel and experiences platform also benefits from the in-house knowledge of card payments in different markets and the markets they are growing into. Adyen reduces the complexity of global expansion with our local acquiring solution. "When we are ready to expand into new markets, it is very likely that Adyen already has a solution for us in those markets.” Michelle adds.

Boosting authorization rates with network tokenization

"One of the great things about working with Adyen is that technologically advanced services like network tokens are offered at a much earlier phase," Michelle says. "That makes a difference to us."

Network tokenization is an automated process that replaces a 16-digit Primary Account Number (PAN) with a non-sensitive reference called a network token. These tokens are utilized to authorize online and recurring payments.

Not only does network tokenization make it easier for customers to make future payments, it’s safer too. As each token is bound to Klook, stolen tokens are useless to fraudsters. Besides, the actual PAN is stored securely by the payment partner or scheme, it becomes more difficult to steal the payment information. “As Adyen is the expert when it comes to compliance and regulations, we trust you to work with the sensitive cardholder information that we pass to you,” Michelle says.

When a customer of Klook chooses to save their card details, the travel and experiences platform can request a network token for that card and use it for future payments. Because network tokens don't expire, the token will remain valid even if the issuer replaces the card. "From an optimization perspective, network tokens have improved our authentication rates and saved us money," Michelle concludes.

With network tokenization, Klook can enable express flows that significantly improve the customer journey. Their consumers can now make future purchases without re-entering their details at checkout.

Adyen is here to help

Travel is better with friends, and so is payments processing. "Something I value is Adyen's account management support," Michelle says. Plus, Adyen’s Customer Area provides dashboards that give Klook data-rich insights on their performance. "There's usually a lot of discussions with the account management team, but what makes a difference is Adyen listening to us and our growth ambitions."

Additionally, as Klook has offices in different markets, having localized support is helpful to them. "Adyen's Shanghai team has been supporting us without language barriers, and that's been awesome," Michelle adds.

Through working with Adyen and enabling local payment methods like EFTPOS, Klook has seen an overall uplift in authorization rate of 3%. Additionally, through network tokenization and streamlining their customer authentication process, Klook achieved a 4.32% uplift in their authorization rate.

Finally, Klook can reach more customers and create seamless customer journeys via a single integration with Adyen's fintech platform. Klook can now accept both internationally recognized and popular payment methods. By optimizing their payment setup with Adyen, they can adapt rapidly to changes in the travel industry while creating superior and consistent customer experiences that turn each transaction into a loyal customer.

Looking ahead, Michelle explains that Klook is constantly exploring new solutions and features to help them achieve their growth ambitions. "Even solutions that Adyen is potentially going to roll out in the future," she clarifies. The services that Klook provides go beyond that of a traditional online travel agency, and this is something that the travel and experiences platform wants to continue to build on. "Other than attraction tickets, we also offer SIM cards, car rentals, hotel stays, and many different services catering to the needs of different markets."

One thing Klook is exploring with Adyen is intelligent payment routing, the process of selecting the payment route with the best chance of authorization. "We are in the early stages of the process but we are gaining some good insights and seeing some tangible benefits," Michelle adds. "With small steps along the way, we can achieve our final goal and target with Adyen."

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