Travel

BNPL Travel and Hospitality Options Expand

travel payments

Travel Now Pay Later has been around for at least as long as the credit card, but the concept is rapidly modernizing as Buy Now Pay Later (BNPL) is moving deeper into the travel and hospitality space this year, helping operators fill planes and rooms as inflation increases. slows pandemic recovery.

The latest development came on Monday, March 7, as provider BNPL Sezzle and payment platform Yap Stone announced a new partnership around seasonal rentals.

According to a Press release“In partnership with Yapstone, Sezzle will serve a growing global market of consumers seeking vacations on a budget. In a 2021 user survey, one in three Sezzle users said they would like to use Sezzle to travel, while over 81% agreed they would go on vacation more often if merchants accepted Sezzle.

It is one of many such deals to be struck in the travel and hospitality industry over the past year as airlines, accommodation companies and their payment partners relaunch the reprise.

American Airlines and Affirm were among the first, announcing the launch of flexible payments to eligible travelers in October.

PYMNTS research consistently reveals that merchants and brands offering payout options are in demand, especially among younger cohorts and those facing financial hardship.

According to The Second-Chance Consumer: How Buy Now, Pay Later Payments Create New Merchant Opportunities, a collaboration between PYMNTS and Sezzle, “second-chance” consumers with good incomes but low credit scores are a prime audience for the BNPL credit.

According to this study, “A second-chance consumer is not necessarily a consumer who would be an unreliable or unwanted buyer. We found that 65% make more than $50,000 per year, and 30% make more than $100,000 The average second-chance consumer is 44 years old and has a FICO score of 662, which is 38 points lower than what is generally considered a “good” credit score.

Get the study: The second-chance consumer: how to buy now, pay later creates new opportunities for merchants

Seize the BNPL moment of Travel

Sezzle, which was recently acquired by rival company BNPL Zip, and Yapstone see opportunities to serve both recovering consumers and Yapstone customers in the travel industry.

Sezzle Chief Revenue Officer Veronique Katz said, “In partnership with Yapstone, Sezzle aims to serve consumers as we emerge from the pandemic and demand for travel increases. Yapstone opens the door to thousands of vacation rental options, and we look forward to connecting their community of buyers with Sezzle’s responsible and cost-effective financing solutions.

Monday’s news from Sezzle and Yapstone comes as several other travel industry sectors and players dip into payouts to help get the 2022 travel recovery off the ground.

BNPL provider Uprising signed two agreements in early 2022, the first in January with South West Airlines offering installments on flights to Hawaii, the second in February with Airlines of Canada.

See also: BNPL Firm Uplift partners with Southwest Airlines for Hawaiian travel

On February 17, Delta Airlines announced that it was adding American Express’ Card-Based Buy It Now, Pay Later feature.® as a checkout payment option on Delta.com.

According to a Press release on this pact, “According to an American Express survey, 68% of Gen Z and Millennial travelers surveyed say they would be more likely to take trips to their dream destinations if they knew they could pay flights over time.”

See also: Delta launches BNPL offer with AmEx

Travel Industry Site TRVLguides reported that “As of January 2022, Airbnb does not accept payments from third-party ‘Buy Now Pay Later’ companies such as Klarna, QuadPay and AfterPay.”

However, Airbnb rival Vrbo announced a deal with Affirm in 2021.

In one Press release On the deal, Vrbo Vice President of Product Management Mike Sutter said, “Vrbo has been connecting families with vacation homes for over 25 years, and now we can deliver even more value to our customers. by being the only vacation rental platform to offer on-time payments with Affirm. This benefit allows families to plan and book future vacations now and pay for them later.

See also: Affirm Teams With American Airlines to bring the BNPL option to travelers

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NEW PYMNTS DATA: ACCOUNT OPENING AND LOAN SERVICE IN THE DIGITAL ENVIRONMENT

On: Forty-two percent of US consumers are more likely to open accounts with financial institutions that facilitate automatic sharing of their bank details upon sign-up. The PYMNTS study Account opening and loan management in the digital environmentsurveyed 2,300 consumers to explore how FIs can leverage open banking to engage customers and create a better account opening experience.