Goldman, JetBlue Team Up On Installment Loan Product

Two days after JetBlue said it would temporarily consolidate service in five U.S. cities, the New York airline has joined Goldman Sachs to offer an installment loan product.

CNBC reported that the global financial services company launched MarcusPay this week, allowing users to spread out big-ticket purchases across monthly payments.

Marcus, the online-only consumer banking and lending arm of Goldman Sachs, offers personal loans with no late fees of up to $10,000, with rates ranging from 10.99 to 25.99 percent at terms from 12 to 18 months, according to its website.

As is the case for most other lenders, the most creditworthy applicants qualify for the lowest rates and longest loan terms, Marcus said.

While fewer customers are booking flights right now, MarcusPay could serve as a payment option for vacationers who book packages in the fall, CNBC reported. The Goldman and JetBlue deal was in the works before the coronavirus pandemic put an end to most air travel.

“During this time, our No. 1 priority is the health and safety of our customers,” Abhinav Anand, head of consumer loans for Marcus, told CNBC.

The new service will enable JetBlue customers to “buy what matters to them, when it matters, and to pay for it in equal payments with no fees or upfront payment,” Anand said.

Partnerships with other firms are expected to follow.

In its review, NerdWallet said Marcus is among the best personal loans in the categories of good credit, debt consolidation and bank loans.

The deal follows JetBlue’s announcement that it has temporarily consolidated service in Boston, Los Angeles, New York City, San Francisco and Washington, D.C. between April 15 and June 10.

The new schedule comes amid a record drop-off in flying as the nation deals with stay-at-home orders during COVID-19. The airline has already told customers they plan to reduce its flying network by 80 percent daily in April.

“We face new challenges every day and can’t hesitate to take the steps necessary to reduce our costs amid dramatically falling demand so we can emerge from this unprecedented time as a strong company for our customers and crewmembers,” said Scott Laurence, Jet Blue’s head of revenue and planning.

Last fall, PYMNTS reported that Marcus, launched in 2016, lost $1.3 billion despite buying startups and building call centers in Utah and Texas, according to The Wall Street Journal.