JetBlue has today shared that its customers have the opportunity to book flights now and pay for them later. The low-cost carrier has partnered with Goldman Sachs to offer a no-fee, no deposit, fixed-rate installment loan option at the point of sale.
Expanding on the process
The product that will make this initiative possible is MarcusPay, which JetBlue was a launch customer of this spring. Initially, the Long Island City-based outfit offered this option exclusively for vacation packages. However, this feature is now available to all customers purchasing flights or packages that cost between $750 and $10,000.
Altogether, the first payment won’t be due until at least one month after the booking is made. Once the loan is approved, and the booking process is complete, passengers can hit the skies. When these loans were introduced, the terms were that they were to be repaid over 12 or 18 months at a fixed interest rate of 10.99% to 25.99%.
Opening up opportunities
MarcusPay is a product of Marcus by Goldman Sachs. It is named after Marcus Goldman, the co-founder of the financial institution. JetBlue’s president of travel products, Andres Barry, said that this initiative allows more flexibility and simplicity to the travel booking process.
“JetBlue is excited to be the inaugural partner for MarcusPay and provide our customers with an additional way to finance their trips, when the time is right,” Barry said, as per the press release.
“Marcus by Goldman Sachs and their latest offering is part of a transparent customer journey. Customers lock in a fixed rate and the opportunity to pay over time, removing some of the hassle and added costs of planning a vacation.”
Moreover, Elisabeth Kozack, head of consumer lending partnerships at Marcus by Goldman Sachs, said that the move gives customers a smart alternative to funding significant purchases. She added that JetBlue is a strong partner for the product, and the airline remains focused on meeting the demands of its customers while providing transparency.
Industry developments
MarcusPay could give more flexibility for many customers when planning their holidays. Yet, it’s important to remember that it is a loan, and there should be careful consideration before applying.
Altogether, across several industries, it is becoming the standard to offer payment plans for large purchases. The idea of buying now and paying later is nothing new. Henry Ford famously promoted this idea for his automobiles over a century ago. Moves like this transformed consumer habits across the United States over the decades.
Now, several online platforms offer instant quotes for loans when purchasing consumer goods such as laptops or televisions. However, this approach isn’t something that many airlines have taken for their flights. Therefore, JetBlue’s partnership with Goldman Sachs could prove to be worthwhile.
What are your thoughts about this payment option from JetBlue? Do you think this is a good move for the airline? Let us know what you think of the introduction in the comment section.
