Travelstart unveils 'book now, pay later' option

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According to FinTech Africa 2023 research, merchants utilising BNPL options report that customers tend to have higher basket values and increased frequency of purchases, with some businesses seeing sales rise by up to 30%.

Payflex has experienced a 10-fold increase in sales volumes between 2021 and 2023.

Revolutioniasing consumer finance in SA

The rise of BNPL options in South Africa has transformed consumer spending habits by promoting greater financial flexibility, encouraging higher spending, and providing an accessible alternative to traditional credit systems. As economic conditions continue to evolve, the relevance and impact of BNPL are expected to grow further, shaping the future landscape of consumer finance in the country.

With Payflex, customers can choose the payment plan that best suits their needs: four equal interest-free payments over six weeks, or three interest-free instalments aligned with their payday schedule. For example, a flight from Johannesburg to Durban could now cost as little as R195 per instalment, with no added interest.

Launching just in time for Black Friday, this feature allows customers to take advantage of Travelstart’s biggest deals of the year running between 27 November to 2 December.

With a range of flight discounts available, travellers can now secure their Black Friday bargains and spread payments across manageable, interest-free instalments, making holiday planning more affordable than ever.

"Book now, pay later options have transformed payment methods in various industries, and travel should be no exception," says Mikha’il Ernest, CCO of Travelstart.

“We’re excited to offer our travellers this financial flexibility, allowing them to book their trips without the burden of upfront costs. This added flexibility addresses a significant need for customers who may find immediate payment requirements to be a barrier."

Meeting the needs of younger consumers

The demographic landscape shows that younger consumers, particularly Gen Z and Millennials, are driving the adoption of BNPL as they seek alternatives to traditional credit sources. This trend is crucial for fostering financial inclusivity in a country where access to credit is limited for many.

Despite rising inflation and economic pressures, consumer spending remains resilient, with BNPL providing a means for individuals to manage their finances more effectively during tough times. The flexibility offered by BNPL is seen as essential for navigating current economic challenges.

This partnership with Payflex underscores Travelstart’s ongoing commitment to making travel affordable and convenient for South African travellers. The BNPL feature is available immediately and can be applied to all flights booked on Travelstart.

"At Travelstart, we continually look to enhance our customer journey. A key part of that journey is payment flexibility, and as payments evolve, we want to stay agile and adaptable to provide customers with the best possible options and alternatives," says Ernest.