Buy now, pay later for flights
JETSETTERS on a budget can now pay for their flights in instalments using buy now, pay later schemes.
Low-cost carrier Tigerair is the latest airline to join forces with a scheme allowing customers to book their flights, go on holiday and pay off their airfares at a later date.
Partnering with alternative payments provider Zip, the airline will put the plan in place by the end of this month, giving travellers Zip interest-free payment options on all domestic and international fares, allowing them to pay off their flights in bite-sized instalments.
Passengers can book multiple flights up to the value of $3000 and then have full flexibility to repay either in weekly, fortnightly or monthly instalments.
Zip customers have up to 60 days to repay before they incur any charges.
The move follows in the footsteps of rival airline Jetstar, who last year introduced the option to use Afterpay for flights booked at least four weeks in advance for fare reservations ranging anywhere between $200 and $1000.
Tigerair spokeswoman Vanessa Regan said the move would make it more affordable and convenient for jetsetters wanting to ease the burden of paying for flights.
"We are pleased to be providing our customers with better flexibility when it comes to booking and paying for travel with Tigerair,'' she said.
But consumer group Choice's spokesman Tom Godfrey has warned customers if they can't afford a flight in the first instance they could be "flying into a world of financial pain."
"Far from taking a relaxing holiday, you could end up staring down a debt collector,'' he said.
"We'd urge caution with these buy now, pay later financial products."
Zip co-founder Peter Gray said Zip does ID and credit checks for every applicant and there are no establishment fees.
"You can make as many purchases as you like and you receive a statement on the first of the month with your balance,'' he said.
"You have until the end of the month to pay off your balance in full and we'll waive the monthly fee, or if you choose to take longer, and choose to only pay the minimum, there's a $6 monthly account fee.