With consumers facing higher prices, Kayak launches BNPL

  • Demand for travel and airline prices have gone up significantly as the pandemic wanes.
  • KAYAK is partnering with Affirm to offer its users the ability to pay for their travel in monthly installments.

Email a Friend

With consumers facing higher prices, Kayak launches BNPL

KAYAK recently launched BNPL functionality for all eligible travelers on the firm's website.

Why it matters

Amid increased demand and inflation, travel costs have skyrocketed. After some initial testing, the online travel company launched its BNPL option broadly in January 2023. KAYAK chose Affirm as its exclusive pay-over-time provider in the U.S. This partnership offers travelers greater spending power and payment flexibility via a BNPL option when booking trips on  

"With flight prices up 40% YoY according to KAYAK and a recent Affirm survey revealing the average person plans to take 3 trips this year, spending over $3,000 on travel, we wanted to offer more flexible payment options to our travelers," Paul Jacobs, GM & VP of KAYAK North America told Tearsheet over email.

affirm and kayak signed a partnership to provide BNPL to users of
Source: KAYAK

How it works

By selecting Affirm at checkout on, approved KAYAK travelers can split the total cost of flights, accommodations, and rental and car sharing over $150 into monthly payments, with visibility over total cost.

Shoppers want more customizable payment options

With budgets tight and prices up, consumers are looking for more options in their payment choices. "Pay-over-time platforms enable more travelers to plan and book trips and pay for them in a way that fits into their budget. Specifically with Affirm, their technology is able to address a wide range of transactions with customizable monthly payment options. This provides our users with greater choice and flexibility. But most importantly, there are no late or hidden fees," Jacobs said.

Travel demand up across the board: Rising travel demand isn't just a KAYAK issue -- it's happening across the board. Airline purchases with Affirm increased more than seven times YoY this fall.

The integration: Jacobs claimed the integration went smoothly, citing the "very capable" technical teams from both partners.

"We are happy with the reception of the product and the usage amongst KAYAK customers," he said.

0 comments on “With consumers facing higher prices, Kayak launches BNPL”


Apple (finally) releases Apple Pay Later

  • After an extended waiting period, Apple launched its Apple Pay Later service yesterday.
  • Pay Later allows consumers to split up single purchases into 4 payments over 6 weeks.
Zachary Miller | March 29, 2023

Behind Wise, G-P collaboration on cross-border payments for independent workers

  • Independent worker payment issues already existed before the pandemic but the recent surge in flexible, remote work has underlined this issue for growing small businesses. 
  • To expedite international payments for freelancers and contractors, Wise and G-P (Globalization Partners), have forged a partnership to enable businesses to offer timely flexible payments.
Sara Khairi | March 22, 2023

How American Express and Microsoft’s new AI-powered solution facilitates business travel payments

  • Expense reports are a critical component of any business -- however, business travelers and expense processors often face challenges in keeping track of their expenses while on the go, leading to missing receipts, lost records, and missed reimbursements.
  • In a move to evolve the way business travel payments are processed, American Express and Microsoft have partnered to develop a portfolio of solutions built on Microsoft Cloud and AI technologies – aimed to minimize the stumbling blocks in business travel for employees and businesses.
Sara Khairi | March 14, 2023

5 questions about ACH payments with Plaid’s John Anderson

  • Visa's acquisition of Plaid was blocked because the firm was interested in facilitating ACH payments.
  • Fast forward a few years and the firm is already doing a billion ACH transactions a year and it's just getting started.
Zachary Miller | March 14, 2023

With growing partnerships, what’s next for Wise in the US market?

  • Wise extends its features via its APIs to its partners – banks, fintechs, and corporates – which they can integrate and build directly within their own offering.
  • Folley Ogundele, VP of Wise Platform at Wise, provides insights on how Wise solutions are integrated within its most recent partner companies in the US — AvidXchange, Brex, and Ramp.
Sara Khairi | March 10, 2023
More Articles