Why Embedded Payments Have Become Make or Break for Booking Platforms

Grant Evans argues that as UK consumers increasingly book wellness and beauty services through third-party platforms, the payment experience is becoming the decisive factor in which platforms both consumers and businesses choose to use, ahead of discovery or price alone.

If you ask someone how they last booked a fitness class or a beauty treatment, there is a good chance the answer won’t be visiting the gym or salon, and it probably won’t be picking up the phone either. Increasingly, consumers are turning to third-party booking platforms and apps that let them browse, compare and book services from multiple providers in one place.

This isn’t just a hunch; the numbers back it up. Our recent research shows that Brits are spending over £15 billion a year booking wellness services in this way, with Gen Z and Millennials accounting for around half of that total spend.

Whether it’s a boxing class, massage, gym membership or haircut, a growing share of bookings and transactions now take place through booking platforms that bring multiple businesses together, giving consumers to browse a variety of options and choose what feels right for them.

For businesses, particularly those in the wellness space, this presents a huge opportunity. A presence on these platforms puts them in front of consumers at the moment they are ready to book. It’s an especially important growth tool for smaller businesses: one in eight (13%) UK adults are specifically using platforms to help them find and support independent businesses. What’s more, 60% say this spending becomes habitual, turning first-time bookings into returning customers.

The power of the payment

For booking platforms, the shift towards digital discovery and the boom in consumers booking services in this way is overwhelmingly positive. But attracting both consumers and businesses increasingly depends on one critical factor: embedded payments.

Our research revealed that nearly three quarters (71%) of UK consumers who used a platform to book a personal service in the last year would abandon a booking altogether if they had a poor payment experience. Meanwhile, over two fifths (42%) actively choose platforms that offer simple and secure payments. It’s a similar story for refunds, too:  84% expect a refund within 48 hours if a booked service is cancelled.

These expectations do more than shape consumer behaviour. They also influence whether businesses, particularly smaller independent providers, choose to list on a platform in the first place. Booking platforms offer real potential to help boost discoverability, growth and retention for businesses.

But if the payment experience risks frustrating customers or creating operational headaches, businesses will look elsewhere, favouring providers that can deliver a smooth end-to-end experience for the customer and minimise abandoned transactions.

Enabling an end-to-end experience

This makes payments a strategic capability, not simply a feature. For booking platforms, investing in strong payments functionality is crucial for future success. The checkout experience is often the make-or-break moment in a transaction and booking platforms that get it right will win the trust of businesses looking to drive growth and build customer loyalty.

This is reinforced further by our recent Merchant Insider report,  which found that an overwhelming majority (82%) of businesses would consider switching platforms to gain better payment capabilities. This demonstrates how not only customer loyalty, but also merchant loyalty, to a platform is often determined by how smoothly they handle payments.

Ultimately, booking platforms are evolving beyond operational tools. They are becoming financial operating systems for the businesses that use them, with embedded payments now a table-stakes capability. Businesses expect more than booking and enquiry management; they increasingly rely on booking platforms to support payments, refunds, cash flow and reconciliation.

Payments capabilities are not simply an important factor in whether a consumer chooses to book a service; they have become one of the clearest signals of platform quality. By embedding smooth payments experiences and working with partners that can deliver them at scale, booking platforms can build both consumer and business loyalty, creating the foundations for sustainable growth.