MarcusPay, JetBlue Expand ‘Fly Now, Pay Later’ Service

Need to Know

• MarcusPay and JetBlue have expanded their partnership to now include a “Fly Now, Pay Later” service of flight bookings.
• Travelers can book a flight through JetBlue or JetBlue Vacations and make the first payment up to one month later, with no fees or up-front deposit.
• MarcusPay and JetBlue previously partnered in April, allowing travelers to pay for vacation packages in installments.
• This partnership is the latest expansion of Buy Now, Pay Later services taking over the e-commerce space.

Analysis

JetBlue has partnered with MarcusPay to expand its “Fly Now, Pay Later” service. In April, JetBlue and MarcusPay partnered to allow customers to book vacation packages and pay for them over installments. Now, customers can enjoy the same service when booking flights directly from the JetBlue website. 

MarcusPay, the Goldman Sachs-owned payments app, allows travelers to book a flight, costing between $750 and $10,000, and pay for it in installments over several months. The service promises no fees or up-front deposit required and a fixed interest rate. Plus, customers have up to one month following their trip to make the first payment. 

“With MarcusPay, we’re adding more flexibility and simplicity to the JetBlue travel booking process,” said Andres Barry, president of JetBlue Travel Products. “JetBlue is excited to be the inaugural partner for MarcusPay and provide our customers with an additional way to finance their trips, when the time is right. Marcus by Goldman Sachs and their latest offering is part of a transparent customer journey. Customers lock in a fixed rate and the opportunity to pay over time, removing some of the hassle and added costs of planning a vacation.”

Buy now, pay later (BNPL) is a point-of-sale credit option that has exploded in recent years, with platforms like Klarna, Afterpay, and Splitit leading the charge in the e-commerce and retail space. Traditional banks such as Citi, Goldman Sachs, and Visa have since jumped on board the trend, either launching their own services or partnering with existing brands to provide a BNPL option. 

MarcusPay’s partnership with JetBlue marks a new foray for BNPL services into the air travel industry; however, JetBlue may be the first airline to provide this service. United Airlines offers a “travel now, pay later” option in partnership with an app called Uplift.

A number of third party booking services are using BNPL options. Alternative Airlines offers a BNPL option, using Fly Now Pay Later, PayPal Credit, Affirm, PayBright or Klarna. With CheapOair, customers can book now and pay later with Affirm. 

MarcusPay is available now through JetBlue or JetBlue Vacations.