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Klarna targets $1 trillion travel sector with Cathay Pacific tie-up

November 28, 2023




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London, UK | 28 November, 2023 – Klarna, the AI-powered payments network and shopping assistant, 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. 

Globally, credit cards are used for 70% of the $1 trillion spent on flights each year according to McKinsey. Klarna’s credit products are a healthier, 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 check-out 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, 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 at Klarna says, “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. By early 2024, Klarna will roll out to Airbnb guests in additional countries across three continents.

Notes to editors: 

Usage limits: 

  • Pay in 3 can be used in the UK on flights booked directly on the Cathay Pacific website between £30 and £2000, in Spain, France, and Italy on flights between €35 and €1,500 and in the Netherlands between €35 and €4000.
  • In Germany, Klarna financing can be used to finance flights up to €5000.