Travel Now Pay Later Market: Current Analysis and Forecast (2023-2030)

Travel Now Pay Later is a financial service that allows travelers to book their trip and pay for it in installments, rather than paying the full amount upfront. This is particularly helpful for travelers who want to plan a trip but may not have the full amount of money available to pay for it at the time of booking.

The Travel Now Pay Later Market was valued at 34.64 billion in 2022 and is expected to grow at a steady rate of around 9.17% in the forecasted period (2023-2030) owing to the increasing popularity of travel and the growing number of people who want to travel but may not have the full amount of money available to pay for it upfront, this type of service is becoming more and more popular. In addition, the rise of online travel booking platforms has made it easier for travelers to find and book their trips and has also made it easier for travel companies and tour operators to offer this type of service. Recent data from a leading global payment processing company shows that the number of travelers using travel now pay later services has increased by over 50% in the past year.

Based on the payment methods, the market is segmented into a debit card, credit card, ach, prepaid card, and check. Among these, the debit card segment is leading the maximum share of the market. The convenience, security, and widespread acceptance of debit cards make them a popular option for this type of service. Furthermore, debit cards are widely accepted by merchants, which means that customers can use them to make purchases at a wide range of stores and online retailers. Also, the recent developments in services is further fueling the market segment. For instance, in 2022, Bank of America announced that it was rolling out a new facial recognition-based TNPL service for its customers. The service allows customers to authenticate their identity using facial recognition technology, which can provide a more secure and convenient option for making purchases.

Based on the travel mode, the market is categorized into cars, flights, and others. Among them, the flight segment is making a huge impact on the market. The increasing demand for travel and tourism has led to the growth of flight mode transportation. As more people seek to explore different destinations around the world, airlines have expanded their routes and increased the frequency of flights to accommodate this demand. This has also driven advancements in aircraft technology, making air travel more accessible and convenient for a larger number of people.

For a better understanding of the market adoption of the travel now pay later services, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia Pacific is expected to grow at a significant CAGR during the forecast period. The adoption of digital payments in the region has increased, making it easier for people to use travel now, pay later services. The tourism industry in the Asia Pacific region is growing, and the travel now, pay later model is well-suited for this market. Also, travel booking apps, which allow people to book their travel and pay for it later, are becoming increasingly popular in the region. This has made it easier for people to use travel now, pay later services, as they can book their travel and make payments through their smartphones.

Some of the major players operating in the market include: Perpay Inc.; Klarna Bank AB; Affirm, Inc.; Uplift, Inc.; Afterpay US Services, LLC; PayPal; PCI DSS; Sezzle; Outlook Publishing India Pvt.; LatitudePay.