Klarna targets $1 trillion travel sector with Cathay Pacific partnership

Cathay Pacific customers in six European countries can now use Klarna to pay for flights

AI-powered payments platform and shopping assistant Klarna has partnered with premium airline Cathay Pacific to offer fairer, flexible payments to travellers in six countries across Europe. 

The agreement is the latest in a series of travel tie-ups for Klarna as the company aims to further expand into the travel sector. 

According to McKinsey, globally credit cards are used for 70% of the $1 trillion spent on flights each year and Klarna’s credit products are a "healthier" and "fairer" way for consumers to access credit, with clear repayment plans and customer-protection features like freezing access to its services when a payment is missed. 

Cathay Pacific customers over the age of 18 can now choose Klarna as a payment option at checkout in six European countries. 

Travellers in the UK, Spain, France, Italy and the Netherlands can pay for their flight in three, interest-free installments using Klarna’s Pay in 3 service. 

In Germany, Klarna financing allows travellers to spread the cost of a flight over 6-24 months, interest-bearing.  

Paul Johannes, vice president customer travel and lifestyle Europe of Cathay Pacific, said, “Cathay Pacific is known for providing passengers with an exceptional service starting at booking all the way through to arrival at their destination. 

"Our partnership with Klarna allows us to provide customers with quick, flexible, and convenient online payment options so everyone can enjoy travel to the Asia Pacific region”. Cathay is world-renowned for its premium offerings, from award-winning lounges to the newest aircrafts, attentive onboard service, and exquisite dining options. 

Raji Behal, head of Western and Southern Europe of Klarna said: “We are super excited to team up with Cathay Pacific, an iconic airline and a byword for luxury. People of all ages are saying ‘no’ to high-cost credit cards, and want to manage larger payments with simple no-interest BNPL or longer-term scheduled payments which help them keep on top of their spending. 

"As travel rebounds, Cathay Pacific is leading the airline industry with BNPL adoption alongside other high-service travel brands like Airbnb.”

The agreement comes shortly after Klarna announced the global roll out of a partnership with Airbnb, with consumers in seven countries now able to spread the cost of their trips worldwide. 

Klarna will also roll out to Airbnb guests in additional countries across three continents by early 2024.