Klarna and UATP team up to modernize travel payments
Klarna and UATP have announced a partnership aimed at the $1 trillion air travel market. The pairing brings together a well-known Buy Now, Pay Later (BNPL) provider and a trusted travel payments network to make booking and paying for trips simpler for both airlines and their customers.
What this unlocks for airlines and travelers
Through UATP, airlines can offer Klarna’s flexible payment options right at checkout. Travelers get choices, including interest-free installments, so planning a trip can feel less stressful and less expensive up front. For airlines, Klarna’s services plug into UATP’s existing rails, helping payment options roll out smoothly without reinventing the process.
Why the numbers matter
Credit cards still account for about 70% of travel payments, and the cost of that is steep: airlines pay roughly $20 billion each year in processing fees. Klarna’s timing reflects growing demand—its own data shows a 50% rise in travel bookings through its platform over the last year.
Why UATP is leaning in
Adding BNPL expands UATP’s toolkit for merchants looking to improve conversion and give customers more ways to pay. It’s also aligned with broader market growth, with the global BNPL market projected to reach $60.47 billion by 2030 at a 26.5% CAGR. For UATP’s airline partners, that growth translates into a clear opportunity to meet customers where they are.
Expert view on BNPL
“BNPL is a must-have for travel merchants looking to enhance customer experience,” says Zach Ornelas, SVP of Global Sales for UATP. He underscores the importance of trusted partnerships and flexible payment choices in a service-heavy category like travel.
How Klarna’s options work
Klarna supports multiple ways to pay, from immediate transactions to interest-free BNPL plans. About 30% of Klarna’s transactions are paid immediately, showing there’s demand for both pay-now and pay-over-time—whichever fits a traveler’s budget at the moment.
Clarity and control for consumers
When payments are made on time, Klarna’s BNPL can help users avoid fees. With a global repayment rate of 99%, the model is built for transparency, giving travelers a clear view of what they owe and when, without interest piling up.
A faster path into travel
By tapping UATP’s established presence, Klarna can bring BNPL to travel merchants quickly. Airlines get an easier implementation path that can lower operational overhead while opening up room for growth across their sales channels.
Making trips more affordable
As Erin Jaeger, Klarna’s Head of North America, notes, travel is a natural fit for BNPL. Breaking a fare or a full itinerary into manageable payments can help consumers avoid the high interest charges that often come with credit cards.
What’s next
The partnership will begin offering services in the near future. Both companies plan to combine their strengths to improve how payments work across the travel journey—from booking to checkout. For questions or details, contact Wendy Ward at wendy.ward@uatp.com.
Frequently Asked Questions
What’s the aim of the Klarna–UATP partnership?
To give airlines and travelers more flexible payment choices, including interest-free BNPL, delivered through UATP’s network.
How does Klarna’s BNPL help travelers?
It lets travelers spread costs over time with interest-free installments when paid on schedule, helping them plan trips without taking on interest charges.
What could this change for the air travel industry?
With credit cards making up about 70% of travel payments and around $20 billion in annual processing fees for airlines, adding BNPL can streamline checkout, lower costs, and improve customer satisfaction.
When will the partnership launch?
It’s expected to go live in the latter part of 2024.
How can businesses learn more about UATP?
Reach out to UATP directly or contact Wendy Ward at wendy.ward@uatp.com for more information.
