“Fly Now, Pay Later” puts travelers in debt
The Future. Inflation has created a global cost-of-living crisis, and many are canceling their travel plans to cope with the price increases of essential goods. But those who do travel are increasingly resorting to Buy Now, Pay Later (BNPL) methods to afford trips — and might get trapped in a dangerous cycle of debt if the jet-setting continues.
Get away… then pay
Fewer and fewer people can afford to travel, but BNPL is putting them on planes.
- According to a recent survey, money troubles have prompted over a quarter of UK citizens to cancel travel plans and cut back on dining out in the past year, and led 20% to turn off their heat. Even more are cutting down on travel.
- In response, some travel firms are partnering with BNPL platforms — like Kayak’s new deal with Affirm.
- The downside: a survey conducted by Accrue Savings found that 1 in 5 US consumers who use BNPL platforms have gone into debt due to travel.
Buy now, cry later
BNPL programs are notorious for encouraging irresponsible spending and having high delinquency rates, and regulators are beginning to target them for it.
In other words, it’s probably best to avoid traveling by BNPL… at least for now.