Challenge

OYO is a digital shopfront that helps hotel and homestay operators increase their revenues, with services ranging from self check-in and expedited booking to AI-powered pricing optimisation. OYO also gives travel agents access to inventory on its platform in order to maximise bookings for its customers.

OYO wanted to recruit thousands of new hotel and homestay operators globally. To do so, it needed a payment solution that supported multiple currencies and payment methods and enabled seamless international cross-border payment processing. It also had to provide a fast, frictionless onboarding experience to new operators and properties, and report on transaction data to track business growth.

OYO wanted to reduce customers’ working capital requirements and accelerate their cash flow. With its existing system, operators had to wait up to a week for funds collected from travellers to be sent to their accounts. The business needed a solution that could deliver daily and instant payouts.

Winning business in new and existing markets also required optimising payments, including reducing processing costs and increasing authorisation rates, to minimise the number of travellers who left in search of a better experience. In addition, OYO wanted to combat fraud to reduce chargeback rates and avoid negative reputational and financial consequences.

Solution

OYO first integrated Stripe Connect, a fast and easy solution for integrating payments into platforms or marketplaces. This enabled OYO to grow globally and operate in new markets without needing to sign up with local payment processors. It also instantly simplified handling payments from online travel agents operating in different countries and regions, and managing transactions in different currencies.

The company also added Stripe Terminal to provide hotels in the US with in-person payment capability, as part of a unified commerce experience. Because in-person payment hardware could be ordered directly through the Stripe Dashboard and set up remotely, Terminal was a key enabler of OYO’s expansion into the US market.

With Connect and Stripe Instant Payouts, OYO can now pay out quickly and seamlessly to operators, minimising their working capital requirements and accelerating cash flow. Hotel partners in the US are now able to access their balances immediately after a successful charge to secure payouts in real time.

OYO also found that with the robust fraud prevention functionality of Stripe Radar – which is integrated with third-party chargeback management solution providers – it could help reduce hotels’ chargeback rates, and ultimately, overall processing charges.

Results

Accelerated onboarding to support growth

With Stripe, OYO can enter markets without having to deal with and onboard different local payment partners in each new geography.

50% of US properties use Stripe Terminal

In the United States, more than 90 OYO properties – almost 50% of the organisation’s partner hotel operators there – are using Terminal to automate POS transactions. With pre-certified, easy-to-implement readers available for direct order through the Stripe Dashboard, OYO plans to quickly ramp up its presence in the US market.

Daily payouts for operators

OYO has implemented daily payouts to operators, improving their cash flow and reducing their working capital requirements. Operators also have real-time visibility into funds collected from travellers that are available to be paid out, enabling them to manage their finances more effectively. Operators in the United States are also accessing their balances immediately after a successful charge and getting instant payouts.

4.3% increase in authorisation rates

OYO has reduced its chargeback rate and implemented an effective chargeback mitigation process in combination with third-party solutions. Overall, OYO has increased its authorisation rates by 4.3%, to almost 96%. This has led to a $500,000 increase in annual revenue.