Digital Trasnsactions
It’s a relatively new arrival among payment options for general merchandise, but the newest buy now, pay later concept has been available for air travel for some time, helping boost airlines after a tough year in 2020. In the latest development, Universal Air Travel Plan Inc. on Wednesday announced it is adopting the Pay in 4 payment option from PayPal Holdings Inc.
UATP processes alternative payments for more than 30 airlines and travel companies, including major brands like American Airlines, Southwest Airlines, and United Airlines.
After a year in which the coronavirus pandemic shut down air travel for most consumers, the non-corporate, domestic segment of the business is staging a comeback. “Installment payments have really helped,” the spokesperson says. “Everybody wants to get out and travel.”
Some 39% of consumers have tried a BNPL option overall, with 55% of these users saying they are likely to spend more than they do with other payment methods, according to a survey of 1,500 consumers conducted by The Strawhecker Group, an Omaha, Neb.-based payments-consulting and research company. The results of the research were released this week.
New research from The Strawhecker Group analyzes key trends and consumer attitudes.
Consumers have increasingly adopted Buy Now, Pay Later (BNPL) services for multiple reasons; a desire for financial flexibility, a way to avoid incurring credit card debt, or to purchase items outside of their budgets. However, despite its popularity, consumer debt and missed payments have led to calls for additional research and regulation. Read the press release.
To take a closer look, The Strawhecker Group (TSG) conducted a survey of over 1,500 U.S. consumers in early 2021 with the goal of understanding domestic attitudes and perspectives on the use of BNPL services. The complete findings, a selection of BNPL provider profiles, and market landscape details can be found in the firm’s new report Buy Now, Pay Later: An Analysis of Key Trends and Consumer Attitudes.