Klarna and Cathay Pacific to offer travellers interest-free payments
By Gloria Methri
Klarna, the AI-powered payments network, and shopping assistant has partnered with premium airline Cathay Pacific to offer fairer, more flexible payments to travellers in six countries across Europe. The agreement is the latest in a series of travel tie-ups for Klarna as the company further expands into the travel sector.
Globally, credit cards account for 70% of the $1 trillion spent on flight bookings each year according to McKinsey. Klarna’s credit products offer a fairer way for consumers to access credit, with clear repayment plans and customer-protection features like freezing access to its services when a payment is missed.
Cathay Pacific customers over the age of 18 can now choose Klarna as a payment option at check-out in six European countries. Travellers in the UK, Spain, France, Italy, and the Netherlands can pay for their flight in three interest-free installments using Klarna’s Pay in 3 services. In Germany, Klarna financing allows travellers to spread the cost of a flight over 6 to 24 months, interest-bearing.
Paul Johannes, Vice President Customer Travel and Lifestyle Europe, Cathay Pacific, said, “Cathay Pacific is known for providing passengers with an exceptional service starting at booking all the way through to arrival at their destination. Our partnership with Klarna allows us to provide customers with quick, flexible, and convenient online payment options so everyone can enjoy travel to the Asia Pacific region”.
Raji Behal, Head of Western and Southern Europe at Klarna says, “We are super excited to team up with Cathay Pacific, an iconic airline, and a byword for luxury! People of all ages are saying ‘no’ to high-cost credit cards and want to manage larger payments with simple no-interest BNPL or longer-term scheduled payments which help them keep on top of their spending. As travel rebounds, Cathay Pacific is leading the airline industry with BNPL adoption alongside other high-service travel brands like Airbnb.”
The agreement comes shortly after Klarna announced the global rollout of a partnership with Airbnb, enabling consumers in seven countries to spread the cost of their trips worldwide. By early 2024, Klarna will roll out to Airbnb guests in additional countries across three continents.
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