Affirm, which provides installment loans to consumers, announced a partnership with American Airlines on Wednesday that will allow travelers to book flights now and pay over time.
“While consumers are more eager than ever to get away from it all, they remain mindful of making travel part of their budget,” said Silvija Martincevic, Business Director of Affirmation. “According to a recent Affirm poll, 74% of Americans say they will spend more than ever on travel this holiday season, while 60% fear they won’t be able to afford to travel the way they want.”
Affirm allows customers to pay for their purchases over time. Interest rates range from 0% to 30% (depending on your credit score) and, unlike most credit cards, the rates are fixed and do not compound. This allows you to see your monthly payments and interest in advance. And that means no interest will accrue, just like with a credit card.
Affirm says it supports installment payments for 29,000 merchants, including Amazon, Target, Vrbo, and Walmart. American Airlines is the first airline to use the service for flights.