Can You Pay for a Flight With Afterpay?

Buy Now, Pay Later (BNPL) services allow consumers to split purchases into manageable installments. Afterpay, a prominent BNPL provider, enables customers to receive goods or services immediately while distributing the cost over time. It is possible to use Afterpay for flight purchases through specific platforms, offering a convenient alternative to traditional upfront payments for airfare.

Using Afterpay for Flight Bookings

Afterpay can be used to book flights through various online travel agencies (OTAs) and some direct airline partners. Platforms like “Fly Fairly” are official Afterpay partners, enabling bookings across over 650 airlines, including major carriers like Delta Airlines, United Airlines, and American Airlines. Alternative Airlines also offers Afterpay as a payment method for flights from more than 600 airlines.

The booking process starts at checkout on a participating website. Customers select Afterpay, then log in or create an account. Afterpay performs a quick assessment, often a soft credit check, for instant approval. Upon approval, the first installment (around 25% of the total) is due immediately to confirm the flight. Remaining payments are then scheduled for automatic deduction.

How Afterpay Payments Work

Afterpay divides the total purchase amount into four equal, interest-free installments. The first payment is made at the time of purchase. The subsequent three payments are automatically debited from the user’s nominated card approximately every two weeks, over a six-week period. No interest is charged if payments are made on time.

If a payment is missed, Afterpay may impose late fees. These fees vary based on the order amount, with specific charges for orders under or over $40. Total late fees are capped at the lower of 25% of the original value or $68 per order. Afterpay may also pause the user’s account until overdue payments are settled.

Afterpay determines a user’s spending limit, which often starts around $600 for new customers. This limit can increase over time with consistent on-time payments and responsible use. Factors influencing this limit include payment history, account duration, and order frequency. While users cannot directly request a limit increase, Afterpay automatically adjusts it based on account activity.

Afterpay and Your Finances

Using Afterpay for flights offers flexibility, but it requires careful financial planning. Splitting a large expense like airfare eases immediate cash flow, but creates future financial obligations. It is important to integrate these future installment payments into a personal budget to ensure funds are available on their due dates. Failure to budget effectively can lead to missed payments and accumulated fees.

Afterpay conducts a soft credit check during approval, which does not impact a user’s credit score. Unlike traditional credit, Afterpay does not report on-time payment history to major credit bureaus, so it won’t directly build credit. However, consistently missed payments can lead to collections, negatively affecting a user’s credit score. Maintaining sufficient funds in the linked payment method is important to avoid declined transactions, which can negatively impact the Afterpay spending limit.