ATLANTA–Another big name is getting into the buy now, pay later (BNPL) business: Delta Airlines.
The airline is offering the BNPL option with the help of American Express’ Plan It tool.
According to a statement from Delta, the new solution lets American Express consumer card members in the U.S. choose from the available Plan It options while booking flights through Delta.
For its part, American Express cited research that shows 68% of Gen-Z and Millennial travelers would be more likely to take vacations if they knew they could pay for the flights over time.
Launched in 2017, Plan It lets American Express members divide major purchases into equal monthly installments with a fixed fee.
In a statement, American Express said BNPL is becoming a popular tool among card users, with the volume of new plans originating in the fourth quarter of last year more than doubling compared to in Q4 2020. In addition, 65% of plans created in the last year were from first-time users.
In 2021, PYMNTS released research that found American Express’ Pay It Plan It solution is more common among people living paycheck to paycheck, compared to the BNPL firm Afterpay, which is more popular among Millennials on firm financial footing. In addition, online usage of Pay It Plan It is higher among the college-educated by about six percentage points over the average, the research found.
How it Works
According to the companies, the Delta partnership lets customers use a BNPL option on flights of $100 or higher. The option is available now on delta.com and will become part of the Fly Delta app this Spring, the companies said.
“Our card members love flying Delta for its world-class service and appreciate the flexibility of Plan It,” said Anthony Cirri, executive vice president, global consumer lending and cobrand at American Express, in a statement. “It’s the perfect time to bring these together as people are booking long-awaited trips, and our card members can book with confidence knowing they are backed by the strong partnership between Delta and American Express.”
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