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What airlines offer buy now pay later?

2 min read

 Niki Giovanis

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Niki Giovanis

what airlines offer buy now pay later

Attention passengers: your dream vacation is calling! With buy now pay later services revolutionizing the way Canadians spend money, major airlines worldwide have hopped on board with this form of alternative payment method, allowing more travellers to visit new corners of the earth they weren't able to previously. Before booking your next vacation, take a peek through our list of airlines offering buy now pay later services below.

What is buy now pay later and how does it work?

For those who aren't in the know, buy now pay later is a type of short-term loan that allows consumers to split larger purchases into smaller, more manageable installments over the course of a repayment term, interest-free. Depending on the service provider and the total cost listed at your checkout, installments are either made bi-weekly or monthly.

So, how exactly does this work? When booking a flight online, proceed to checkout as normal. Once you've filled out your personal information, the option to choose your payment method should pop up on your screen. By selecting a buy now pay later service, you'll be redirected to a third-party website where you'll fill out an application form. To be approved, the BNPL service provider will run a soft credit check to confirm your eligibility for this type of payment option.

Afterward, the business will go ahead and provide payment plans for you to choose from. Note that opting to pay monthly typically includes interest rates based on your creditworthiness, so beware. Once you've confirmed the payment plan works for you, you'll need to pay a down payment the same day. From then on, you'll make your weekly or monthly installments until the full cost of your purchase is paid off.

What airlines permit fixed monthly payments for flights?

Now that you have a better idea about how buy now pay later payment options work, let's take a look at some of the airlines offering this service to customers in Canada who want to fly while being on a budget:

Air Canada flights

Whether you're flying domestically or internationally, Air Canada flights are now eligible for BNPL services. PayPal Credit, Uplift, Affirm, and Klarna. For an easier, more convenient time comparing flight costs and Air Canada flight schedules, Alternative Airlines is a platform that supports numerous monthly payment options offered by BNPL providers, allowing you to pay for your trip in smaller chunks rather than all upfront.

Alaska Airlines

Alaska Airlines also offers the option of paying monthly. However, unlike Air Canada, the only BNPL providers you can use are Uplift and Klarna.

Allegiant

Allegiant is similar to Alaska Airlines, partnering with Uplift and Klarna to help travellers book their trips by spreading their payments throughout a payment plan.

American Airlines

American Airlines provides numerous opportunities for buying now and paying later, including Klarna, PayPal Credit, and Affirm. Customers can choose between bi-weekly and monthly options. However, flight extras, like baggage add-ons, will not be covered.

Emirates

Partnered with Uplift, Klarna, and PayPal Credit, Emirates is a renowned airline from the United Arab Emirates with buy now, pay later options available for all bookings.

Delta Airlines

Delta accepts PayPal Credit for flight bookings in the United States. If you're booking through Delta Vacations, you can use Affirm to split your ticket payments.

KLM

KLM is partnered with PayPal Credit. They also have a special account feature that allows travellers to hold their booking for 72 hours to decide whether or not they would like to checkout with their flight or find another available deal.

Southwest

Southwest Airlines allows you to book your trip with Klarna, Uplift, and PayPal Credit. However, payment options are month-to-month only.

Sunwing

Lastly, Sunwing, which flies from Canada to destinations in the Caribbean and Mexico, also offers customers the option to pay for the cost of their ticket by spreading payments over the course of a payment plan.

Which BNPL providers allow you to book flights

While the BNPL providers partnered with airlines may vary, here's a closer look at the ones we briefly mentioned above:

Affirm

Affirm is one of the first buy now, pay later companies. The app is now supported by over 100,000 in-person and online shops in North America, including airline flights. Affirm provides users with a quick approval procedure and interest-free payment alternatives for purchases as low as $50. They also provide four payments and larger financing choices for more expensive checkouts. Depending on your creditworthiness, you could face up to a 36% APR if you choose monthly payback terms.

Klarna

Klarna is a leading buy now, pay later app for consumers who appreciate financial flexibility. Customers can pick between a pay-in-four plan, a pay-in-30 plan, and monthly financing alternatives. If you want to pay monthly, you will incur interest, which will vary based on your creditworthiness. Klarna is presently accepted by over 400,000 global shops and partners with various airlines.

Uplift

Not into flying? Uplift offers buy now pay later to various businesses in the travel sector, including cruises, hotels, and more. Depending on your credit score, the APR on your monthly payments will vary between 0% and 36%. While interest can be high, you won't be subject to late or prepayment penalties.

Paypal Credit

Lastly, PayPal Credit offers an APR of 25% for new accounts looking to book flights. If you want to avoid interest charges, you can pay off your ticket costs within a six-month period.

What happens if I can't make a monthly payment?

If, for some reason, you're unable to manage your monthly payment, you may have the option to reschedule for a later date. Depending on the BNPL business, you may have to pay a rescheduling fee. Now, if you miss a payment and pay at a later date, you'll be charged late fees, with costs varying from $5 or more, which can add up over time.

It's important to stress that failing to make the monthly installments within your payment plan can impact your credit score, as BNPL providers do send your information to credit bureaus. When this occurs, your non-payments will be listed on your credit report, potentially hurting your credit score and overall credit history.

Are there any drawbacks to buy now pay later services?

Spreading your ticket costs into smaller payments is a great way to stick to your monthly budget plans for spending and saving. However, there are still some potential drawbacks to using this type of service that Canadians should be aware of:

Late fees

Depending on which BNPL business you partner with, you may be subject to late payment fees if you do not make your payments on time, which can easily snowball into more debt quickly.

Travel guilt

Everyone deserves to go on a vacation. But, without the right money management skills in place, booking too many vacations without having the funds to pay off your loan can put you into significant debt and lead to travel guilt.

Could hurt your credit

Most BNPL businesses report to credit bureaus in Canada. While the initial soft credit check will not lower your credit score, missed payments reported to credit bureaus can lower your score and look poorly on your credit report if you do not use this type of service responsibly.

Not sure what your credit score is? Get a free credit score check and build your credit with KOHO by applying for our virtual credit card with overdraft protection coverage today!

What alternative payment methods can I use to book flights?

If, by now, you've decided that BNPL platforms aren't right for you, there are other alternatives you can use if travelling is high on your bucket list this year:

Rewards or cash-back credit cards

There are many rewards or cash-back credit cards available in Canada that allow users to use their accumulated points to purchase flights, hotels, and other travel modes at a discounted rate. So, what are the best credit cards in Canada for travel?

  • KOHO Premium Prepaid Mastercard: The KOHO Premium Prepaid Mastercard offers 2% cash back on travel purchases, with no foreign transaction fees or interest charges. You can track your payments and budget your spending using the KOHO mobile, making it easier to streamline your finances while on the go.

  • American Express Cobalt™ Card: The American Express Cobalt™ Card offers a 20.99% APR with 2 points per $1 on travel purchases. Bonuses of this card include travel insurance and hotel and car rental discounts.

  • CIBC Aventura® Visa Infinite Card: The CIBC Aventura® Visa Infinite Card also has a 20.99% APR with 2 points per $1 spent on travel through the CIBC Rewards Centre. Travel insurance, concierge services, and travel rebates are also included.

Use a prepaid Mastercard for travel purchases

We get it; there are many Canadian credit cards in the market. However, for many Canadians, paying interest on payments isn't everyone's responsibility, which is why you may want to use a prepaid Mastercard for travel purchases instead. These types of cards offer numerous benefits, including enhanced security features if your card is lost or stolen, the flexibility of choosing how much money you preload onto your card at a time, low exchange rate fees, and global acceptance, making it easier to pay for items outside of Canada.

What are the best travel booking websites?

Beyond Alternative Airlines, which allows you to compare flights and costs, you may be wondering what other best airline booking websites are there for Canadians to use. Here's a closer look:

Skyscanner

Skyscanner is a well-known search tool that analyzes rates from multiple airlines and travel companies to help you find the cheapest ticket discounts available. You can also book your vacation months or years in advance with their calendar tool.

Google Flights

Google Flights is also great at finding low-cost flights and the ability to compare several flight options at a time. You can also track price trends, view pricing graphs for your desired travel dates and destinations, and receive email notifications when airfares change.

Expedia

Expedia offers packaged deals on airline tickets, accommodations, and auto rentals at reduced prices. The website offers comprehensive customer service, including opportunities for flight adjustments and cancellations.

Cheap flights can make or break your vacation dreams, which is why doing your research and staying on top of travel trends is essential if you want to keep more money in your pocket. When searching for flights, remain flexible with your date and departure times if possible. Booking your vacation in advance is also recommended, as it can help you access the best deals available. And, if you're really serious about saving on flights, set flight notifications on your phone to snatch the best deals throughout the day before they sell out online.

The bottom line

Buy now pay later is a great option for those with the travel bug who want to see the world while managing their finances. From Air Canada to KLM and Sunwing, there are numerous airlines today that are happy to offer payment plans, making travel more accessible. If BNPL isn't something you find appealing, travel credit cards are also a great alternative.

At KOHO, we help Canadians streamline their finances with thoughtful financial products that are easy to use and tailored to different financial journeys. Whether you want to get a cash advance to pay for unexpected bills during months when cash is tight or make a return on the money you're putting away for the future by opening up a high-interest savings account, know that KOHO has something for everyone!

Note: KOHO product information and/or features may have been updated since this blog post was published. Please refer to our KOHO Plans page for our most up to date account information!

About the author

Niki is a communications specialist with years of experience as a freelance and marketing agency content writer. With a knack for storytelling, Niki enjoys working with businesses from diverse industries to craft engaging content that resonates with target audiences worldwide.

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