Inspire New Travel Spending with Flexible Payment Options
As payment services evolve, by offering Pay Later solutions, you’ll provide the financial flexibility, security and convenience your clients want when making those important travel plans.
Travel Now, Pay Later
Travel industry reports reveal that travel is back! Consumers are eager to sojourn to faraway places. The types of trips being booked reflect a desire to travel purposefully — whether it’s to reconnect with loved ones, pursue passions, experience bucket-list destinations with a focus on sustainability, or all the above.
In fact, American Express Travel’s 2022 Global Travel Trends Report reveals that of those surveyed, 62 percent of respondents plan to be more thoughtful about where and how they travel; 72 percent plan to spend more on domestic travel while 64 percent plan to spend more on international travel than they did in 2021. In addition, 62 percent plan to book multiple trips in 2022.
As consumer travel behavior continues to diversify, offering PayPal’s payment solutions at checkout can provide flexibility, security and convenience no matter what the trend, so your customers can focus on what’s important — fulfilling meaningful travel experiences that will create lasting impact.
The PayPal Advantage for You and Your Clients
For many leading enterprises within the travel industry, a successful business model is rarely a "one-size-fits-all" approach. Providing customers with choices designed to suit their unique needs and preferences is paramount. This doesn't just apply to choosing flights, destinations, or travel itineraries but options on how to pay for it all. Whether it’s the purchase of airline tickets, hotel accommodations, an extraordinary tour, or the whole package, today’s travel consumer wants to conduct financial transactions that are straightforward, efficient, flexible and secure. Consumers want options to help turn their vacation dreams into reality.
By partnering with PayPal for digital checkout, you can provide flexible payment options with Pay Later solutions such as PayPal Pay in 4* ($30-$1,500 in purchases) and the new PayPal Pay Monthly** ($199-$10,000 in purchases), which provide advantages to both your business and your customers. These flexible Buy Now, Pay Later (BNPL) choices have proven to lead to increased merchant conversion rates and repeat orders by consumers. PayPal drives higher unplanned purchases by 19 percent1, while 74 percent of PayPal Pay Later users have used PayPal’s BNPL solutions again within 12 months from the original transaction.2
PayPal's offerings can help differentiate your business from others in the crowded marketplace. As the traditional “pay now” system evolves, PayPal continues to innovate with digital payment choices that best fit your clients’ needs. Varied solutions cast a wider net to attract new customers and provide lifetime value to existing customers, creating brand loyalty, and increasing engagement and frequency of purchases.
BNPL solutions enable your business to get paid upfront without taking on credit risk, while your customers can split those big-ticket travel items across multiple, predictable payments that fit their budget.
PayPal offers businesses not only its Pay Later payment options but access to its entire suite of integrated solutions, including fraud protection, that reach consumers all in one place.
Statistics show that PayPal enjoys a higher average order value (AOV) with its products than other digital payment platforms. PayPal’s global BNPL solutions have driven more than 2x the AOV compared to PayPal’s standard AOV.3
*About Pay in 4: Loans to California residents are made or arranged pursuant to a California Financing Law License. PayPal, Inc. is a Georgia Installment Lender Licensee, NMLS #910457. Rhode Island Small Loan Lender Licensee.
**Pay Monthly is subject to consumer credit approval. 9.99-29.99% APR based on the customer’s creditworthiness. PayPal, Inc.: RI Loan Broker Licensee. The lender for Pay Monthly is WebBank.
Flexible Options that Work
• PayPal's Pay Later solutions help your customers purchase the travel they want now and pay for it later.
• Businesses that use Pay in 4 and Pay Monthly are paid in full, upfront at the time a purchase is completed and PayPal manages the repayments with your customers in accordance with their Pay Later plan.
• The Pay Later solutions can be offered to your customers at the same time for them to choose — Pay Monthly or Pay in 4. Pay Later options are offered and displayed at checkout based on price point, length of payment terms and APR rate to allow your customers to select the payment method that works best for their budget and lifestyle.
PayPal: Customer Champion
PayPal is a Customer Champion, which is why one of its core values is to focus on the financial health and wellness of its customers…your customers. With Pay in 4 and Pay Monthly, PayPal provides easy tracking of payments directly from the PayPal app. In addition, PayPal’s frequent communication about upcoming payments, visibility of payment transactions, and not tacking on late fees on missed or delayed payments ensures that each customer is supported with the tools to help them spend responsibly and properly manage their plan. These methods have proven valuable to consumers, resulting in lower delinquent payments and defaulted loans than the reported industry standard. So, if it's that luxury ski trip your client is dreaming to take, let PayPal's Pay Later solutions help make it happen!
Click here to learn more about PayPal’s Pay Later solutions and how to offer them to your customers
1. Source: Nielsen Online Survey commissioned by PayPal, June 2020 of 2,801 US consumers including at least 200 PayPal transactions and 200 non-PayPal transactions in each vertical.
2. Source: Based on PayPal Internal data from Nov. 2020 - June 2021.
3. Based on PayPal Q1 Earnings - 2021.