A traveler arrives at the American Airlines Terminal 3 ahead of the Christmas Holiday at O’Hare International Airport on December 22, 2022, in Chicago. is even closer. But as travelers securing end-of-year trip reservations begin to reach for their wallets, another payment option is on the table.
Buy now, pay later is a way for holiday travelers to finance the $1,947 they plan to spend on holiday flights and hotels this season, according to NerdWallet’s findings. This is an increase of more than 23% from last year’s holiday travel spending . That’s despite aThe rise of buy now, pay later services
For one, buy now, pay later can keep travelers from immediately paying for a sizable airfare expense when holiday gifts and other year-end costs can quickly add up.“You can instantly finance it even if you don’t have cash in the bank and you don’t want to use your credit card,” he says, noting its appeal to those who might not have stellar credit or who don’t have a credit card.
“We will be working to ensure that borrowers have similar protections, regardless of whether they use a credit card or a Buy Now, Pay Later loan,” the bureau’s director, Rohit Chopra, said in the report.