Affirm, which provides installment loans to consumers, announced a partnership with American Airlines on Wednesday, which will allow travelers to book flights now and pay over time.
"While consumers are as eager as ever to get away, they remain conscious of fitting travel into their budget," said Affirm's Chief Commercial Officer Silvija Martincevic. "According to a recent Affirm survey, 74% of Americans say they'll spend more on travel this holiday season than ever before, while 60% are concerned that they can't afford to travel as they would like to."
Affirm lets customers pay purchases off over time. Interest rates range from 0% to 30% (depending on your credit score) and, in contrast to most credit cards, the rates are fixed and do not compound. This lets you view your monthly installments and interest upfront. And it means that any interest won't accumulate -- like it does with a credit card.
Affirm says it supports installment payments for 29,000 merchants including Amazon, Target, Vrbo and Walmart. American Airlines is the first airline to use the service for flights.