JetBlue customers can book flights now and pay for them later without using a credit card. The New York-based low-cost carrier has partnered with Goldman Sachs' MarcusPay to offer a no-fee, no deposit, fixed-rate installment loan option for ticket buyers, the companies announced.
In April, JetBlue and Goldman Sachs launched MarcusPay to allow users to spread out vacation-package debt across monthly payments, and the companies have now made MarcusPay available for flights in addition to vacation packages. 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.
The companies said MarcusPay’s easy application process offers JetBlue customers the opportunity to apply for a MarcusPay loan from the airline’s website and soon on its mobile app. MarcusPay can be used for trips priced from $750 to $10,000 and customers can see their loan options within minutes. They promise no fees or up-front deposit required and a fixed interest rate.
“MarcusPay gives customers a smart alternative to financing large purchases,” said Elisabeth Kozack, head of consumer lending partnerships at Marcus by Goldman Sachs, in a statement.
JetBlue Travel Products President Andres Barry said the airline is adding more flexibility and simplicity to the travel booking process.
“Customers lock in a fixed rate and the opportunity to pay over time, removing some of the hassle and added costs of planning a vacation,” Barry said in a statement.
Last month, Goldman Sachs reported its second quarter (Q2) had the best earnings in nearly a decade as its reliance on trading and investment banking paid off amid the turbulence caused by COVID-19, CNBC reported.
The bank said it had $2.42 billion in profit, or $6.26 a share, better than the $3.78 estimate of analysts surveyed by Refinitiv. Even its revenue of $13.3 billion was more than $3.5 billion higher than the estimate. The strong results stemmed from its trading and investment banking divisions, which made up 75 percent of the firm’s revenue in Q2.
“Goldman’s earnings this quarter were too good, almost indecent, in fact,” Octavio Marenzi, CEO of capital markets consultancy Opimas, told CNBC. “The Fed has been able to engineer a huge bounce-back in the markets by injecting trillions of dollars, benefiting investment banks primarily.”