Flexibility is Here to Stay. Amadeus Responds To Demands For BNPL Options With ‘Uplift’ and ‘Fly Now Pay Later’ Integration
The pandemic demanded an extraordinary level of flexibility from the world. As the travel industry returns to pre-pandemic levels, flexibility looks like it’s here to stay.
As travel accommodates for a higher level of uncertainty, change and cancellation fees have been adapted and buy now pay later (BNPL) options are emerging.
This month, Amadeus has announced partnerships with travel specialists Uplift and Fly Now Pay Later to provide a BNPL option on their Xchange Payment Platform. The platform is utilised by hundreds of airlines and travel companies, giving companies the option to easily add BNPL to their sales channels.
The growing demand for BNPL
As discussed in a previous article, the aviation industry is becoming more receptive to a BNPL system. The concept itself is by no means new in the retail landscape but the application of this within the travel industry is still in its infancy.
Stephen Quinn, Fly Now Pay Later CCO said “BNPL use by Gen Z in the US grew six-fold over a year […] but Baby Boomer adoption increased even more rapidly, from 1% in 2020 to 18% in 2021.”
Tom Botts, CCO at Uplift echoed this sentiment revealing “over two thirds of Uplift users chose BNPL.”
We are currently in the midst of extremely uncertain economic times. The UK is facing a cost of living crisis and the world is experiencing a global energy crisis. These turbulent times are further fuelling demand for BNPL payment options.
Amadeus’ response to demand
Amadeus demonstrated awareness of this growing demand in their recent report. The report showed that 75% of people surveyed were more likely than previously to choose a payment-by-instalment option or BNPL to fund travel.
The BNPL option on the Xchange Payment Platform will give travellers the choice to pay for travel in instalments over six, nine, or twelve months.
Beatrice Bouju, head of partnerships at Amadeus payments described the integration of these systems as a response to demand from travellers, “the message from travellers is clear – they want the choice to pay for the trip in instalments.”
As the aviation industry evolves, flexibility looks set to stay.
The modernisation of payments is a huge part of this year’s World Aviation Festival. One panel will be discussing the question, “How can new opportunities in the space of FinTech and alternative payments address the passenger behaviours and expectations of today?”
Article by Jess Brownlow