UATP, known for its efficient global payment network, has partnered with Klarna, a leader in AI-driven payment solutions, to innovate payment options in the $1 trillion air travel sector. This strategic alliance will integrate Klarna’s flexible payment solutions, including its popular interest-free Buy Now Pay Later (BNPL) service, into UATP’s extensive network of airlines and travel agencies.
The collaboration leverages the strengths of both companies, with Klarna poised to extend its BNPL offerings to a wide array of airlines and travel agencies across the EU and APAC regions. This partnership aims to capitalize on the air travel market, traditionally dominated by credit card payments that incur high fees for airlines and interest charges for consumers.
UATP is distinguished by its ability to streamline complex payment systems and offer versatile payment options globally. Klarna, renowned for its BNPL solutions, provides transparent terms and boasts a global repayment success rate of 99%. This integration will enhance UATP’s service portfolio, meeting the growing demand for BNPL solutions projected to reach $60.47 billion by 2030, and will help reduce transaction costs for merchants.
Zach Ornelas, SVP of Global Sales at UATP, emphasized the importance of BNPL for travel merchants, stating, “BNPL is crucial for travel merchants as it offers flexibility and convenience, encouraging travelers to complete transactions and improving conversion rates. Klarna, with its trusted reputation, is the ideal partner for this service.”
Erin Jaeger, Head of North America at Klarna, added, “Travel is an ideal sector for interest-free BNPL, allowing travelers to spread the cost of their trips and avoid high credit card interest rates. This agreement with UATP enables us to extend these benefits to a broader audience and tap into the significant growth potential of the $1 trillion travel industry.”
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