Summary
- Avelo Airlines is partnering with PayPal to provide passengers with flexible payment options.
- Among the features, travelers will be able to use PayPal’s Pay in 4 service, which enables them to split their purchases into interest-free payments.
- In addition to the Pay in 4 feature, Avelo will also offer PayPal’s other services to enhance payment.
Ultra-low-cost carrier (ULCC) Avelo Airlines will partner with PayPal to provide passengers with flexible payment options. Through the collaboration, the airline will feature the financial company’s suite of services, giving travelers a secure and seamless transaction experience.
Avelo announced the new multi-year partnership on Thursday. While other airlines offer purchasing capabilities through PayPal, the ULCC said it is the first in the US to allow passengers to utilize the company’s buy now, pay later service.
“First-of-its-kind collaboration”
The service is designed to provide more choices for travelers regarding how they pay for their flights, which will help them manage their budget, according to the airline.
Photo: Tweed New Haven Airport
Andrew Levy, Avelo’s CEO, spoke about the carrier’s new relationship with PayPal.
“Every journey starts with booking a trip, and our first-of-its-kind collaboration with PayPal is going to make purchasing your next Avelo flight smoother and simpler than ever. PayPal’s Pay in 4 zero-interest flexible payment product makes it easier and more affordable to take advantage of our industry leading reliability and experience our Soul of Service on an Avelo flight.”
Buy now, pay later
When Pay in 4 is selected during the checkout process, eligible passengers can split up their purchases from between $30 and $1,500 into four interest-free payments that will be due every two weeks after the first payment is paid at the time of the transaction.
Photo: Angel DiBilio | Shutterstock
Nearly 70% of global Pay Later with PayPal customers are repeat users, according to PayPal’s internal data recorded in 2022. Avelo said the statistics demonstrate the service’s interest among consumers and its benefit for the airline.
Other services
PayPal’s extended suite of services will also be offered in addition to the Pay in 4 feature. The carrier said the services will “grow its business and offer travelers with a superior experience:”
- PayPal Checkout will allow travelers to pay for their flights securely and trustfully. The customer can choose from whichever payment method they have on file, which reportedly includes credit cards, debit cards, balance from their PayPal account, pay later options, withdrawal from their bank, and more.
- PayPal Braintree will process transactions, helping Avelo to improve its authorization rates. The service is also believed to give travelers a seamless transaction experience. The airline said merchants who leverage PayPal Braintree have seen their authorization rates increase on average by four percentage points globally.
- PayPal’s Fraud Protection Advanced solution is designed to assist Avelo with ensuring legitimate purchases are approved promptly while fraudulent transaction attempts are declined. The airline also plans to utilize PayPal’s dispute resolution capabilities early next year to recover chargeback quicker and more effectively.
While Avelo said it is the first to offer PayPal’s Pay in 4 service, other airlines allow their customers to purchase flights with interest-free payment installments through services such as Afterpay or Klarna.
The partnership comes as Avelo has grown significantly since commencing operations two years ago. With its fleet of 16 Boeing 737s, the airline has carried over 3.5 million passengers across more than 27,000 flights to 44 destinations in 23 states and Puerto Rico.
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