France) and moreover European laws against overindebtedness are often much more restrictive on the granting of credits than what exists in the USA and we will not complain when we see what disastrous situations this can lead to.Īnd one may wonder if this system is exportable to all countries. Such systems do not exist in all countries (e.g. Based on this, Uplift will offer you a personalized interest rate. with a person’s social security number a business has access to their “ Credit Score” which is calculated based on your credit history, repayment terms and other factors. Indeed, Uplift is only an intermediary between the customer and the credit institutions! That’s why the service only works in a few countries today. Uplift offers an “Autopay” function to schedule monthly payments and avoid increasing your debts and paying excessive interest.īeforehand, the customer will have created an account on Uplift and will have provided a certain amount of information that will make it possible to decide on the payment limit and the interest rates applied. Then, as with a credit card, he chooses each month to repay all or part of it and of course pays interest on the amount not repaid. So the customer buys his trip and chooses Uplift as his payment method. Uplift works like a credit card, well a “real” credit card like the ones used in the USA, not what exists in France and is unfairly called a credit card when it is only a deferred payment card. To understand how the system works we will start with the example of Uplift. Well, mainly on the North American market. And there is a risk for the airlines to lose customers if they can’t offer them financing options.Īnd why shouldn’t buying on credit, which is a fairly common option for many goods, also become a possibility in the travel world?Īll these reasons explain why we see “BNPL” initiatives multiplying. Moreover, you have certainly noticed how ticket prices have increased in 2022 and there is no indication that this trend will be reversed in the near future. It is therefore by definition something that the airlines have an interest in offering to their customers. The challenge of the BNPL for the airline industryĪccording to some studies it is said that 70% of travelers would spend more on travel if they were offered to pay later and this is not surprising. This partnership is only valid today in North America and we will see why later. The partnership between Uplift and Amadeus allows players who use the Amadeus payment module to offer this convenience to their customers. The GDS acts as a sort of intermediary between the travel agency, the website and the airline’s reservation system.Īs for Uplift, it is a business that offers a “Buy Now Pay Later” (BNPL) service that allows travel companies to offer their customers to book a ticket and pay it later. When you go to a travel agency the agent will use the airline’s GDS, when you buy a ticket online the website is connected to the GDS etc. Amadeus and Upliftįor those who are not familiar with the way airlines work, Amadeus is what is called a GDS (Global Distribution System) and to put it simply, it is a solution used by the travel industry and therefore the airlines to sell their tickets and related services. The recently announced partnership between Amadeus and Uplift is an opportunity to talk about what seems to be an inevitable and necessary revolution in air travel: the possibility to book your flight and pay later.
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