Virgin to add ‘fly now, pay later’ option

October 15, 2019
Virgin Australia

Virgin Australia customers will next year get to fly now and pay later thanks to a deal with LatitudePay announced Tuesday.

The Australian carrier is adding the option for domestic and international flights costing up to  $1000 from the first half of 2020.

It is also promising to introduce an interest-free installment option for travel over $1000 sometime next year.

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The deal allows customers who sign up with LattitudePay to use the system to buy a ticket and pay for it over 10 weeks without paying interest.

It comes at an opportune time with luck-luster domestic airline leisure as consumers face weak wages growth and worries about international and domestic issues.

The buy now, pay later phenomenon has also proved popular with younger people, many of whom are eschewing credit cards.

Passengers wanting to use the system will need to undergo a credit and ID check.

They are required to pay the first installment upfront and the LattitudePay website warns there are late fees that the company’s website puts at $10 for each payment missed.

Users authorize the company to deduct the payment amounts automatically from a debit or credit card.

Virgin Australia chief executive Paul Scurrah said LattitudePay would provide more choice and flexibility for passengers planning their next trip or holiday.

LatitudePay launched just over a month ago and joins a crowded “buy now, pay later” market in Australia.

However, the company behind it, Latitude Financial, is the former GE Finance that provided retail customers with personal loans for years and has about 2.6 million customers.

“Latitude has been providing payments and installments options for more than 30 years, which means we are uniquely placed to support Virgin Australia and its customers who want easier ways to reach their chosen destinations,” Latitude chief executive Ahmer Fahour said.