Global payment network UATP has announced a partnership with buy now, pay later (BNPL) provider Klarna to offer flexible payment options to airlines and their customers. This collaboration aims to enhance the travel booking experience by allowing travelers to choose from a variety of payment options that suit their budget and preferences.
Flexible Payment Options for Airline Customers
Through this partnership, airline customers will have the flexibility to select Klarna’s immediate payments, short-term interest-free BNPL, or longer-term financing for travel products and services. This range of payment choices will enable travelers to manage their expenses more effectively and make booking flights and accommodations more convenient.
Zach Ornelas, senior vice president of global sales at UATP, emphasized the importance of BNPL as a payment option for travel merchants. He stated, “BNPL offers flexibility and convenience to encourage travelers to complete transactions and boost conversion rates.” By providing customers with alternative payment methods, airlines can cater to a wider audience and enhance their overall customer experience.
Expanding Access to BNPL Options
The partnership between UATP and Klarna is set to go live by the end of the third quarter, allowing airlines and travel agencies on the UATP network to seamlessly integrate BNPL into their payment offerings. This collaboration not only strengthens UATP’s support for BNPL options but also provides Klarna with immediate access to a vast network of airlines and travel merchants.
Erin Jaeger, head of North America at Klarna, highlighted the benefits of interest-free buy now, pay later options for travelers. She mentioned, “Travel is perfect for interest-free buy now, pay later, allowing travelers worldwide to spread the cost of their trips without getting stuck paying sky-high credit card interest rates.” The partnership with UATP enables Klarna to extend these benefits to a broader range of airlines and tap into the significant growth opportunities within the travel industry.
Industry Trends and Partnerships
Travel and hospitality firms worldwide are increasingly investing in payment upgrades to enhance the booking experience for customers. According to the PYMNTS Intelligence and Ingo Payments collaboration, “Travel Tips: Instant Payments for Tips and Payouts in Travel and Hospitality,” there is a growing emphasis on offering seamless and convenient payment options in the travel industry.
Klarna has been actively forming partnerships in the travel space to provide flexible payment solutions to travelers. The company recently expanded its collaboration with travel giant Expedia to offer flexible payments to travelers in the United States. Additionally, Klarna teamed up with ride-sharing company Uber to allow users in the U.S., Germany, and Sweden to use Klarna’s Pay Now option for immediate payment of their next ride. Furthermore, Klarna collaborated with luggage and travel accessories brand Away to offer BNPL options to customers in the U.S., Canada, and the United Kingdom.
The partnership between UATP and Klarna signifies a strategic move to cater to the evolving needs of travelers and enhance the overall booking experience within the travel industry. By providing airlines with access to a range of flexible payment options, this collaboration aims to streamline the booking process and boost customer satisfaction.
In conclusion, the partnership between UATP and Klarna represents a significant step towards modernizing payment options in the travel industry. With a focus on flexibility and convenience, airlines can now offer customers a variety of payment choices to suit their preferences. This collaboration underscores the importance of adapting to changing consumer preferences and providing innovative solutions to enhance the overall travel experience.
