GDS Amadeus will introduce Buy Now, Pay Later as it looks to expand the payment options its travel customers offer to their customers.
The European tech giant said partnerships with Uplift and Fly Now Pay Later reflect the kind of flexibility customers are looking for when shopping for high-value travel products.
Buy Now Pay Later (BNPL) options have emerged in recent years as a way to spread the cost of a purchase over multiple monthly payments.
Uplift and Fly Now Pay Later have been integrated into the Amadeus Xchange Payment Platform (XPP), as part of a dedicated multi-vendor BNPL ecosystem for travel.
Hundreds of airlines and travel companies use XPP to power their payments, from fraud prevention to payment acceptance.
Airlines, travel agencies and hotels can now add BNPL options to their sales channels through a single connection to Amadeus.
Travelers can choose to pay for the trip in a series of installments over six, nine or twelve months.
Amadeus said that BNPL is particularly well suited to the travel industry due to the common requirement for advance payments at the time of booking.
Research among 5,000 travelers found that 68% would spend more on travel if BNPL options were available, while 49% said they would be more likely to purchase airline ancillary services.
Beatrice Bouju, Head of Partnerships and Payments at Amadeus, said: “BNPL’s growth across all sectors has been remarkable and the message from travelers is clear: they want the option to pay for travel in installments.
“Such payment options will help the travel recovery by facilitating pent-up demand for higher-value vacations as travel restrictions are lifted.
“Our vision for the Amadeus Xchange Payment Platform is a one-stop shop for travel companies to access the latest in fintech innovation, so adding the BNPL services of two travel specialists to the mix was an easy choice.”
Stephen Quinn, Chief Commercial Officer of Fly Now Pay Later, said: “According to research by Cornerstone Advisors, Gen Z’s use of BNPL in the US increased sixfold year over year.
“But Baby Boomer adoption grew even faster, from 1% in 2020 to 18% in 2021. Integrating our services into the Amadeus Xchange Payment Platform provides ease of adoption for the travel industry and more choice for travellers” .
Tom Botts, Commercial Director at Uplift, added: “Travellers increasingly prefer the option to pay for a trip in installments, with over two-thirds of Uplift users choosing BNPL because it reduces financial stress to pay over time rather than everything at once.
BNPL has become a standard payment method for travel. Now, travel providers who rely on the Amadeus Xchange Payment Platform can add Uplift’s flexible payments quickly and easily, immediately benefiting from increased customer loyalty and increased bookings.”