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Shifting from cost centre to revenue driver
From the clang of the first mechanical cash register in 1879 to the digital infrastructure powering modern payments, payment technology has long been seen by retailers and hoteliers as a necessary cost of doing business.
Terminal hardware, interchange fees, system maintenance, staff training—costly, yes, but unavoidable.
For decades, the narrative around payments was fixed firmly on cost rather than opportunity.
But this perception is changing.
As international travel and cross-border commerce grow, payments have become more than just an operational function. An international world needs globalised solutions.
Consumers increasingly expect convenience, speed, and personalisation at every touchpoint. They want frictionless experiences that mirror their day-to-day digital interactions, regardless of where they happen to be.
These changing expectations, paired with rapid advancements in technology, have positioned payments as both a critical part of the customer experience and a strategic driver of business growth.
To remain competitive, businesses must deliver effortless, borderless payment experiences that remove friction, inspire confidence, and encourage greater customer loyalty.
For today’s retailers and hoteliers, innovations like multi-currency transactions (e.g. DCC) and Tax Free refunds, have transformed payments from a backend necessity into a crucial way to enhance customer experience while increasing incremental revenue.
These services not only boost profitability at the point of sale but also help businesses differentiate themselves in highly competitive markets.
As global customer bases become more diverse, the ability to tailor payment experiences to individual preferences is no longer a nice-to-have, but a commercial imperative.
Businesses that proactively embrace these tailored payment solutions can drive repeat visits and secure long-term customer loyalty, particularly among international shoppers who value convenience and transparency.
Key revenue-generating payment strategies
With the rise of next-generation payment technology, retailers and hoteliers have more tools than ever to unlock revenue from the point of sale. By leveraging these innovations, they can efforlessly integrate payments into broader customer engagement and revenue strategies.
Rather than viewing payments simply as a final step in the sales process, forward-thinking businesses are using them proactively as a strategic lever to increase profitability.
Below are four strategies that are helping businesses turn payment into profit.
1. Dynamic Currency Conversion (DCC)
DCC gives international customers the option to pay in their home currency at checkout. It makes payments more transparent and convenient for the customer while generating revenue for the business through the foreign exchange margin.
By clearly displaying conversion rates and fees upfront, DCC reduces uncertainty, making customers feel more confident about their transactions. Because customers instantly see the exact cost in a currency they understand, they're less likely to abandon purchases due to uncertainty over exchange rates.
Planet was one of the first companies to introduce DCC in the 1990s, and it remains one of the most effective ways to profit from payment processing today.
It’s so simple and effective that it should be standard practice for all hoteliers, global online retailers, and merchants in tourist-heavy areas.
2. Tax Free shopping
Tax Free Shopping is often discussed from the tourist’s point of view, with international travellers earning VAT refunds that effectively lower the cost of their purchases.
However, the benefits extend beyond the consumer. For retailers, Tax Free Shopping acts as a targeted discount strategy that not only draws more shoppers in but encourages them to spend more once they’re there.
Research consistently shows that tourists who use Tax Free Shopping services have significantly higher average transaction values compared to those who don’t.
A study by International Retail found that Tax Free spending by non-EU visitors to the UK increased spending by GBP265 million. On top of this, retailers earn commission on the refunded VAT, providing a direct source of revenue beyond the sale alone.
Additionally, promoting Tax Free Shopping can help position a retailer as tourist-friendly, attracting high-value international shoppers who actively seek out stores offering VAT refunds.
This strategy is particularly effective in high-spend retail scenarios, such as luxury, fashion, and duty-free. Retailers can tailor their approach based on their customer profile and unique sales environment. For example:
- High-end retail: Train staff to highlight Tax Free as an upselling tool (e.g. “With your refund, that shirt is essentially free when you buy the suit.”).
- Fast-moving retail: High-footfall shops such as souvenir or duty-free outlets should focus on making the process fast and seamless to keep lines moving and maximise transaction volume. Leveraging digital refund solutions or self-service kiosks can significantly reduce wait times, improving customer satisfaction and throughput.
3. Embedded finance and alternative payment methods
Offering a wider range of payment options increases the likelihood of conversion and boosts average transaction values. Payment methods like digital wallets, Buy Now Pay Later (BNPL), and account-to-account payments are especially effective.
Consumers who use alternative payment methods tend to shop more frequently and spend more per transaction, as friction is reduced and purchasing power increases.
Consumers are more likely to complete purchases when they can pay using familiar, convenient methods. BNPL, in particular, has been shown to encourage higher spend per visit, making it a powerful tool for retailers across fashion, beauty, and electronics.
According to recent research from BNPL providers, retailers offering BNPL report increases in conversion rates, basket sizes, and repeat purchases.
Modern payment infrastructure makes it easy to integrate these options, providing a more flexible experience for customers and generating additional revenue for businesses.
Cloud-based platforms and APIs have simplified the adoption of alternative payment methods, enabling businesses to quickly adapt to emerging customer preferences without major technical overhauls.
4. Payment data & AI-driven optimisation
Data is one of the most underutilised assets in payment strategy. With AI and advanced analytics, businesses can gain deep insights into customer behaviour and transaction trends.
By harnessing these insights, businesses can proactively optimise pricing strategies, personalise customer offers, and anticipate purchasing patterns with remarkable accuracy.
This data can be used to:
- Tailor payment experiences based on customer nationality or preferences
- Adjust pricing or promotions to better match shopper profiles
- Optimise product placement and checkout flows for higher conversion
AI also enhances back-office operations. Fraud prevention tools help reduce chargebacks, and intelligent payment routing ensures each transaction is processed efficiently, helping to maximise the margin on every sale.
Machine learning algorithms, for example, can identify potentially fraudulent transactions in real time, significantly lowering operational risk and improving overall transaction acceptance rates.
Case in point: real-world revenue gains with Planet
At Planet, we’ve seen first-hand how a small change in payment strategy can lead to significant gains. We’ve helped retailers generate up to €500,000 in additional revenue simply by optimising their payment strategies.
These gains are achieved without major investments or operational disruptions, demonstrating the power of smart, strategic enhancements in payment processing.
One retailer, for example, had consistently high international foot traffic but wasn’t leveraging Dynamic Currency Conversion (DCC). After partnering with Planet to implement DCC, they were able to offset payment costs and generate additional profit.
Within just a few months, the retailer saw a measurable increase in both customer satisfaction scores and bottom-line revenue. What was once a missed opportunity quickly turned into a reliable revenue stream.
By closely analysing existing transaction patterns and customer behaviour, we make it a priority to help businesses identify specific areas where small changes can yield significant financial returns.
The future of revenue-generating payments
Over the next five years, I predict that we will see payments become fully unified across all sales channels, making revenue optimisation more seamless than ever.
Businesses that embrace AI-driven personalisation and data-informed pricing strategies will be best positioned to outperform their competitors.
Those who integrate these strategies early will not only maximise profits but also secure long-term loyalty by consistently meeting and exceeding customer expectations.
For retailers and hoteliers, the priority now is to integrate revenue-generating payment solutions that enhance both the customer experience and operational efficiency.
This future won’t be built overnight, but by simplifying journeys and unifying systems through connected software, businesses can start to see meaningful benefits.
Early adopters of these technologies will gain an essential competitive edge, building agility that allows them to respond quickly to shifting consumer behaviours and market dynamics.
Start turning payments into profit
We’re in a moment of transition, where payments are no longer seen as a cost but as a strategic opportunity for growth. Retailers and hoteliers who embrace this shift now will gain a competitive edge.
Those that don’t risk falling behind and leaving significant revenue on the table. Incremental changes in your payment processes today can translate into substantial financial gains tomorrow.
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