jet blue has shared today that its customers have the opportunity to book flights now and pay for them later. The low-cost airline has partnered with Goldman Sachs to offer a fixed-rate installment loan option with no fee or deposit at the point of sale.
Expanding the process
The product that will make this initiative possible is MarcusPay, which jet blue was a launch client this spring. Initially, the Long Island City-based team offered this option exclusively for vacation packages. However, this feature is now available to all customers who purchase flights or packages costing between $750 and $10,000.
When these loans were introduced in April, the terms were that they would be repaid in 12 or 18 months at a fixed interest rate of 10.99% to 25.99%. Once the loan is approved and the reservation process is complete, the passengers can fly into the air. In total, after making the reservation, the client will not have to make the first payment until after a month.
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MarcusPay is a product of Marcus of Goldman Sachs. It is named after Marcus Goldman, the co-founder of the financial institution. JetBlue’s president of travel products, Andrés Barry, said that this initiative allows greater flexibility and simplicity in the travel reservation process.
“JetBlue is pleased to be MarcusPay’s inaugural partner and provide our customers with an additional way to finance their travel, when the time is right.” Barry said, according to the news release.
“Marcus by Goldman Sachs and its latest offering are part of a seamless customer journey. Customers lock in a flat rate and the opportunity to pay in installments, removing some of the hassle and extra cost of planning a vacation.”
In addition, Elisabeth Kozack, head of consumer loan partnerships at Marcus by Goldman Sachs, said the move gives customers a smart alternative to financing major purchases. she added that jet blue is a strong partner for the product, and the airline remains focused on meeting the demands of its customers while providing transparency.
MarcusPay could give many customers more flexibility when planning their vacation. However, it is important to remember that this is a loan and should be carefully considered before applying.
Collectively, in various industries, it is becoming the standard to offer payment plans for large purchases. The idea of buying now and paying later is not new. Cars have been sold in finance for a century. These movements transformed the habits of consumers in the United States for decades.
Now, various online platforms offer instant loan quotes when purchasing consumer goods like laptops or televisions.
However, this approach is not something that many airlines have adopted for their flights. Therefore, JetBlue’s partnership with Goldman Sachs could be worthwhile.
What do you think about this JetBlue payment option? Do you think this is a good move for the airline? Let us know what you think of the introduction in the comments section.