How Buy Now, Pay Later has changed the travel industry

Consider reading the article to know how BNPL has changed the travel industry.

BNPL is a program that enables customers to divide a purchase into multiple installments. The first installment is usually due at checkout, but you can make other payments at any time. Most people associate these services with shopping online, but credit card companies also offer this type of payment method.

You may have noticed that most people who make purchases online are doing so through BNPL. This is because BNPL (buy now pay later) has changed how people purchase. This is true from a retailer or business standpoint, too. 

With this new payment method, there’s no need for that person to have a bank account. Customers only need an email address and phone number associated with their account. This ease in payment processing also means that consumers benefit from having less friction during checkout. 

 The power of BNPL lies in its ability to empower customers who otherwise may not be able to purchase items on their own without incurring high-interest rates.

BNPL for the Travel Industry – A Brief Overview

BNPL is a simple and convenient way to pay for travel. The payment system has more than 60 million customers worldwide, with over 900 million users expected by 2027. In fact, surveys have found that 50% of Americans used a BNPL service at least once in 2022, and 60% plan on doing so by 2025.

BNPL offers many benefits over traditional credit cards. It provides much more flexibility than a credit card. Besides, it has a more straightforward approval process and lower (if not nonexistent) interest rates. 

These points clarify why many people prefer using this type of payment method when traveling abroad or visiting friends/family because there’s no need for extra fees added onto each transaction fee, which other companies like American Express would otherwise charge.

The Pay-Later Program brings an Expanded Customer Base

BNPL is a great way to expand your customer base. The interest-free installment payment method attracts people who were earlier priced out by your offers. Using BNPL, companies can entice younger customers. It also helps increase profits for companies and improve their brand image among consumers worldwide by allowing them to travel affordably.

Evidence Strikingly Lower Cancellation Rates 

With BNPL, the user can second-guess their purchase even after completing the payment. In fact, many users have reported that they have been able to cancel their reservations and ask for a refund because of this feature. 

BNPL is an excellent solution for any business looking to benefit from its customers’ reservations and those who want to provide them with more options. It helps reduce cancellations by enabling users to pay off their installments before leaving on tour or activity.

Wrapping Up

BNPL has changed the way people make their purchases. The ‘buy now pay later’ option eases the payment process even more than other online payment options like PayPal and Google Wallet. From a retailer or business standpoint, it is a boon because consumers are the ones who benefit the most from this new technology.