When you are clubbing who needs cash? In attempting to answer this question Ushuaïa Ibiza Beach Hotel has ramped up the volume for its party-going clientele with the launch of a new cash free payment system.

In what is being described as another ‘first’ for the hotel & leisure industry, the hotel is the first in the world to use a system known as PayTouch. Using biometric technology all purchases can now be made on site with the touch of a fingertip. The hotel has installed fourteen payment points in and outside the hotel, which offers guests access to a range of services including discounts, prizes and promotions.

To make it simple, pre-registration to use the system can be accessed via Ushuaïa’s webpage or –as the summer party season is now underway - from one of the touch points in the hotel. Similar fingerprint systems have been used in the dining rooms of some British schools.

Guests can use one or several credit cards, which will be directly charged on a no-commission basis. According to the hotel, one of the main advantages of the Paytouch system will be priority access to Ushuaïa events.

The Ushuaïa system is compliant with the Payment Card Industry Data Security Standard, or PCI-DSS security standard, but confusion has recently arisen around this standard, according to a recent report by Wired. While obviously very convenient one of the issues it raises is – that in the event of system failure - who exactly is responsible for compliance?

Another first but may not be for everybody

This is not the first time Ushuaïa has innovated with technology. Last year it introduced an optional RFID-enabled wristband for guests and installed sensors throughout the hotel so that guests could use Facebook. Users wearing the bands could simply swipe their wrist against a sensor and then upload pictures, update their status and check-in using Facebook places.

The content captured was then used on the hotel’s own Facebook page so guests were encouraged to tag themselves – all good publicity for the hotel. As Alfonso Giménez, Marketing Director of Fiesta Hotel Group, which owns the hotel, points out the group is constantly “seeking new ways of differentiating our products”.

But while such technological developments coupled with additional music components may be “setting a benchmark for the industry” there are also benefits for the hotel. Unconstrained by having cash in the pocket, guests may well now spend more – something they might live to regret when they return home to receive the credit card bill.

It is also worth noting that this is a particular sort of crowd. Many people may be concerned about privacy and certainly not all hotel-going guests would appreciate the ability to check-in with Facebook places or pay with a fingertip.

Nevertheless, Ushuaïa is technically innovating, is working to understand the needs of its clubbing crowd and finding new ways to market and make money. But the lesson here is this: yes innovate with technology but as always understand your own audience and business objectives. And make sure you understand the legal, security and privacy implications of any new innovative technology before heading down the investment road.