Affirm, Agoda will provide BNPL Travel Booking
Approved travelers booking hotels through the Agoda platform will benefit from a buy-it-now, pay-later (BNPL) option provided by supplier BNPL Affirm under a new agreement, the companies announced Monday, June 13. .
For hotel stays of $50 or more, guests will be allowed to make interest-free payments every two weeks or once a month through Affirm’s adaptive payment.
“The launch of pay-over-time options with Affirm will allow travelers to North America who may have previously found it inconvenient to pay for their reservation in one lump sum to spread the costs over multiple payments without incurring compound interest. or additional costs,” said Thi-Mai-Linh Bui, Chief Financial Officer of Agoda.
Affirm’s chief revenue officer, Geoff Kott, says the company’s research found that 80% of participants in a recent survey said they plan to splurge on a trip this year. Of these travelers, 30% plan to pay for trips over time rather than in a lump sum.
More here: Is Apple Pay Later really a threat to Affirm and other BNPL providers?
The announcement of the new collaboration comes a week after Apple announced its entry into the BNPL space. As PYMNTS noted in an analysis released on Monday, the former IT company is going after players – including Affirm – that are likely to operate with more financial flexibility.
The planned $1,000 cap on Apple Pay Later purchases would easily prove insufficient for hotel reservations in major cities or other prime locations.
Affirm works with over 200,000 retailers offering customers buy-it-now and pay-later options. The company insists it’s different from some companies that extend credit because “we show consumers exactly what they’ll pay up front, never increase that amount, and never charge a delay or hidden”.
Singapore-based Agoda, founded in 2005, said it offers travelers access to 2.5 million properties in more than 200 countries. Agoda reports having more than 4,000 employees in 30 countries.
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