Affirm Teams With American Airlines to Bring BNPL Option to Travelers

Buy now, pay later (BNPL) startup Affirm is partnering with American Airlines to bring flexible payments to eligible travelers so they can pay for flights over time, according to a press release emailed to PYMNTS on Wednesday (Oct. 27).

Affirm and American Airlines teamed up ahead of the holiday travel season to give people a flexible way to pay for travel. A PYMNTS survey this week shows that 43% of consumers want to use BNPL for more expensive purchases like travel and home repair.

The data also indicates that 29 million people in the U.S. have used BNPL to make purchases in the past year, and 59% would be willing to use those services if offered to them by third-party providers. Further, 61% of consumers who use BNPL said it offers an easier way to manage their spending.

See also: 43% of US Adults Interested in BNPL for ‘Big-Ticket’ Travel, Home Repair, Medical Purchases

“While consumers are as eager as ever to get away, they remain conscious of fitting travel into their budget. According to a recent Affirm survey, 74% of Americans say they’ll spend more on travel this holiday season than ever before, while 60% are concerned that they can’t afford to travel as they would like to,” said Silvija Martincevic, Affirm’s chief commercial officer.

Martincevic added that Affirm’s partnership with American Airlines gives travelers “flexibility, transparency and control” when buying plane tickets for the holiday season and for trips after that.

To use Affirm, customers select the option at checkout. Flights over $50 can be split into monthly payments for approved American Airlines customers. There are no late fees or hidden charges, and any interest amount is transparent and remains consistent.

Read more: Lease-to-Own Puts Durable Goods in Reach for Ineligible BNPL, Other Credit Borrowers

American Airlines is one of 29,000 Affirm merchant partners, including Ikon Pass, Target, Vrbo, Vacasa, Walmart and others.

Founded in 2012 in Silicon Valley, Affirm has processed over $17 million in purchases, according to its website. American Airlines trades on Nasdaq under the ticker symbol AAL and is included in the S&P 500.