UATP, renowned for its robust global payment network that facilitates streamlined payment processes, has entered into a strategic alliance with Klarna, a leader in AI-driven global payments.
This partnership introduces Klarna’s flexible payment solutions, including its popular interest-free Buy Now Pay Later (BNPL) service, to UATP’s extensive network of airlines and travel agencies.
This collaboration represents a pivotal junction for both entities, leveraging their complementary strengths. Klarna will gain unprecedented access to a broad spectrum of airlines and travel agencies across the EU and APAC regions, establishing itself as a preferred BNPL provider. The partnership is strategically positioned to tap into the $1trn air travel market, currently dominated by credit card payments which incur substantial costs for airlines and hefty interest fees for consumers.
UATP stands out in the travel payment sector for its capability to simplify complex payment systems and extend versatile payment options to a global clientele. On the other hand, Klarna, a pioneer in the BNPL space, offers a range of payment methods from immediate settlements to flexible, short-term financing solutions. Klarna’s offerings are particularly appealing due to their transparent terms and high consumer repayment rates, which boast a 99% success rate globally.
Integrating Klarna’s services enhances UATP’s portfolio, allowing it to offer a diverse array of BNPL solutions that cater to the growing demand in the global market, projected to reach $60.47bn by 2030. This integration not only simplifies the adoption of BNPL for UATP’s merchants but also significantly reduces the costs associated with payment transactions.
UATP SVP of Global Sales Zach Ornelas said, ” BNPL is an essential payment option for travel merchants to provide their customers. It offers flexibility and convenience to encourage travelers to complete transactions and boost conversion rates. But to reap the full benefits of having this payment option, merchants need a BNPL partner that their customers know and trust. Klarna is that partner.”
Klarna Head of North America Erin Jaeger noted, “Travel is perfect for interest-free buy now, pay later, allowing travelers worldwide to spread the cost of their trips and without getting stuck paying sky-high credit card interest rates.
“This agreement with UATP means we can quickly bring these benefits to many more airlines and tap into the huge growth opportunity which the $1trn travel industry represents for us.”
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