Like in other industries, Buy Now, Pay Later (BNPL) was a major topic of discussion at the travel-focused Phocuswright conference in Fort Lauderdale this week. While BNPL has been the talk of the eCommerce space for several years now, the alternative payment method still has plenty of room to grow in the travel industry. According to Justt’s 2023 Chargeback Pulse survey of North American merchants, 42 percent of travel and hospitality merchants offer a BNPL payment option at checkout. Meanwhile, an additional 16 percent of travel and hospitality merchants expect to offer a BNPL option within 12 months’ time. That means a majority of the travel industry in North America will be offering BNPL financing for purchases by the end of 2024.
This dovetails with the increasing adoption of BNPL by consumers, with 53 percent of U.S. consumers saying that they used the alternative payment method in the past 12 months, according to a survey conducted by Justt in May. Merchants are just following the money.
One of those merchants has been Royal Caribbean Group, the cruise ship company, which has been offering short-term installment loans through Affirm on its website checkout since December 2022.