Payments and shopping platform Klarna, has partnered Cathay Pacific to offer flexible payments to travellers in six countries across Europe.
The agreement is the latest in a series of travel tie-ups for Klarna as the company aims to further expand into the travel sector. The travel industry has traditionally has seen high credit card usage with McKinsey reporting that credit cards are currently used for 70% of the $1 trillion spent on flights, globally, each year.
As part of the deal Cathay Pacific customers over the age of 18 in the UK, Spain, France, Italy and the Netherlands can now pay for their flight in three, interest-free instalments using Klarna’s Pay in 3 service.
Pay in 3 can be used in the UK on flights booked directly on the Cathay Pacific website between £30 and £2000, in Spain, France, and Italy on flights between €35 and €1,500 and in the Netherlands between €35 and €4000. In Germany, travellers can use Klarna financing to spread the cost of a flight over 6 – 24 months, interest-bearing. This feature can be used to finance flights up to €5000, Klarna said.
“We are super excited to team up with Cathay Pacific, an iconic airline and a byword for luxury! People of all ages are saying ‘no’ to high-cost credit cards, and want to manage larger payments with simple no-interest BNPL or longer-term scheduled payments which help them keep on top of their spending. As travel rebounds, Cathay Pacific is leading the airline industry with BNPL adoption alongside other high-service travel brands like Airbnb,” Raji Behal, Head of Western and Southern Europe at Klarna, said.
The agreement follows several other BNPL announcements recently in the travel industry. Earlier, this month Saudi Arabia-based Almosafer partnered with Tabby to allow travellers pay for trips in monthly instalments.
It also comes shortly after Klarna announced the global roll out of a partnership with Airbnb, with consumers in seven countries now able to spread the cost of their trips globally. Klarna plans to roll out to Airbnb guests in additional countries by early 2024.
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