BNPL has been taking the payments world by storm – offering consumers the chance to take out installment loans at the POS, or afterward in a mobile app or website. The BNPL product has made its way to the travel segments often called ‘Book Now, Pay Later” on popular e-commerce sites such as Expedia, which partner with a third-party BNPL provider such as Affirm.
Recently, American Express and Delta Air Lines have partnered to offer the American Express version of BNPL called Plan It®:
“American Express and Delta Air Lines have been longtime partners in the card space, and today they announced that they’re giving consumers more flexibility to pay for flights over time. Starting Feb. 17, American Express cardholders will be able to use Plan It®, Amex’s branded buy now, pay later (BNPL) feature, to cover Delta flights of $100 or more.”
In many ways, the partnership makes sense given American Express’ legacy as a credit card for those that travel. It’s also advantageous to be offering a BNPL product right now – a market which we forecast to surpass $100 billion annually in 2024.
Overview by Ben Danner, Research Analyst at Mercator Advisory Group