Avelo Airlines has inked a deal will PayPal to become the first U.S. airline to offer PayPal’s Pay in 4 payment feature.
The Pay in 4 checkout option allows travellers to break up purchases between $30 and $1,500 into four interest-free payments every two weeks, with the first payment due at time of purchase.
Speaking on the deal, Andrew Levy, Avelo Airlines Chairman and CEO, said, “Every journey starts with booking a trip, and our first-of-its-kind collaboration with PayPal is going to make purchasing your next Avelo flight smoother and simpler than ever. PayPal’s Pay in 4 zero-interest flexible payment product makes it easier and more affordable to take advantage of our industry leading reliability and experience our Soul of Service on an Avelo flight.”
Rising demand for BNPL
The deal comes as BNPL services that allow shoppers to pay for purchases over time continue to grow in popularity globally. For instance, consumers in the US have been flocking to buy now, pay later (BNP) services for their groceries, this year, as they attempt to combat the rising costs of living.
In the travel industry, too, airlines have increasingly been looking to tap into the demand for more flexible payment options. In February, BNPL provider for the travel industry Fly Now Pay Later, partnered with UK-based Eastern Airways to enable its customers to spread the cost of their travel expenditure over monthly instalments. More recently, in the Middle East, Saudi Arabia’s Almosafer tied up with Tabby after the Saudi Central Bank (SAMA) gave the fintech the go-ahead to expand its BNPL services.
According to PayPal data, 67% of global Pay Later with PayPal customers are repeat users, demonstrating its interest among consumers and the benefit it will have for Avelo.
In addition to the use of Pay in 4, Avelo will now leverage PayPal’s extended suite of services including PayPal Checkout, PayPal Braintree and Risk as a Service Tools.
Avelo was founded to Inspire Travel by saving its Customers time and money. Since taking flight on April 28, 2021, Avelo says it has flown more than 3.5 million sustomers on over 27,000 flights. It currently operates a fleet of Boeing Next-Generation 737 aircraft and serves 44 destinations across the United States, including its six bases.