Paying for flights in installments: this is the idea behind Fly Now Pay Later, the fintech startup shows the travel industry a way to recover.
Founded by Jasper Dykes in 2015, the startup came up with a very interesting idea: more flexible travel payment. Instead of committing in advance to buying full price tickets, Fly Now Pay Later users can spread the cost over 1-12 months, starting from a minimum of 0% as annual percentage rate. After a quick credit check, the platform suggests payment options, offering loans ranging from $100 to $3,000.
The startup stands as a broker offering advantages to both the user and the provider: from the travel providers’ side, signing up to be present on the platform turns into an opportunity to appeal to new targets.
Fly Now Pay Later currently employs 70 people in the UK. Over the years the company has built a strong B2B activity, yet widening the B2C side with a consumer payment app soon to be released.
Fly Now Pay Later is an attractive solution in Phase 2 of the pandemic, due to the increased possibility of extraordinary situations impacting on travel plans, making already bought tickets useless. According to Dykes, as travel restrictions loosen and airlines try to recover lost revenue, flight costs will increase and more people will have to borrow money to finance their tickets.
By virtue of its potential in this background, the startup received a significant funding of £35 million (or 39.2 million euros or 42.6 million dollars) in an A-series round led by Revenio Capital, in partnership with Shawbrook Bank and BCI Finance, two institutional debt providers in specialized finance. The funds will be used to strengthen the product offering, and will support the release of a new app.
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