Affirm, Agoda to Provide BNPL Travel Booking

Approved travelers booking hotels through the Agoda platform will get a buy now, pay later (BNPL) option provided by BNPL provider Affirm under a new arrangement, the companies announced Monday (June 13).

For hotel stays costing $50 or more, guests will be allowed to make interest-free payments every two weeks or once a month via Affirm’s Adaptive Checkout.

“The launch of pay-over-time options with Affirm will enable travelers in North America who might have previously found it inconvenient to pay for their booking in one lump sum to spread the costs over multiple payments without incurring any compound interest or additional costs,” Agoda Chief Financial Officer Thi-Mai-Linh Bui said.

Affirm Chief Revenue Officer Geoff Kott said that the company’s research found that 80% of participants in a recent survey said they plan to splurge on a trip in this year. Of those travelers, 30% plan to pay for trips over time instead of in a lump sum.

More here: Is Apple Pay Later Really a Threat to Affirm and Other BNPL Providers?

The announcement of the new collaboration comes a week after Apple announced it was entering the BNPL space. As PYMNTS noted in an analysis published Monday, the one-time computer company is taking on players — including Affirm — that are likely to operate with more financial flexibility.

The expected $1,000 cap on Apple Pay Later purchases would easily prove inadequate for hotel bookings in major cities or other choice locations.

Affirm works with more than 200,000 retailers offering buy now, pay later options to customers. The company insists it is different than some companies that provide credit because “we show consumers exactly what they will pay up front, never increase that amount, and never charge any late or hidden fees.”

Agoda, based in Singapore and founded in 2005, said it offers travelers access to 2.5 million properties in more than 200 countries. Agoda reports having more than 4,000 employees in 30 countries.