China’s Trip.com has struck two new partnerships, covering the UK and Asia Pacific, to give customers the opportunity to delay or spread out payments for their purchases.
In Asia Trip.com has joined forces with Atome, while in the UK it will use Klarna.
Trip.com bookers in the UK will see Klarna as an additional payment option when they arrive at check-out, where they’ll be able to choose one of three payment options: pay the full amount immediately, pay the full amount within 30 days, or pay in three installments over 60 days.
Trip.com’s Atome partnership will first only be available in Singapore, before other Asia Pacific regions in 2023.
In the face of a squeezed household budgets, buy now pay later schemes are becoming more popular. They tend to be common when buying bigger ticket items, like a vacation, but even food delivery platforms are looking to split payments for customers.
Klarna claims its short-term, interest and fee and fee free credit products deliver positive outcomes for consumers, with extremely low default rates of “well below 1 percent”.
“Klarna assesses a consumer’s ability to repay on each purchase, taking a real time view of someone’s financial circumstances which means using Klarna is never guaranteed,” it said.The company restricts the use of its services if consumers miss a payment to prevent debt building up.
Trip.com offers 1.2 million hotels and flights from 480 airlines.