Installment payment solution providers that focus on the travel industry say they are becoming mainstream.
“It is increasingly becoming a way that consumers want to pay,” said Tom Botts, chief commercial officer for Uplift, which is the largest player in the space. “It is becoming an expectation of consumers wanting this payment option, not only for retail, but also for travel.”
Commonly referred to as “buy now, pay later,” solutions like Uplift’s enable travel consumers to purchase airline tickets, cruises, vacation packages, hotels and other travel products via payment plans that can span from a few months up to more than a year. Buy now, pay later customers typically receive credit decisions almost instantly, with interest rates determined based upon their credit histories. Uplift, for example, offers noncompounding interest rates of between 7.99% and 32% on loans ranging from $100 to $25,000. Payment terms range from as short as three months to as long as 18 months, said…