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AmEx (AXP) Extends BNPL Solution to Delta to Ease Flight Booking

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American Express Company AXP extended its buy now, pay later (BNPL) solution named, Plan It, for the first time at one of its partner’s point of sale. With Delta Air Lines being the partner, the solution can now be utilized as a new checkout option on the official website of the partner.

Plan It was introduced in 2017 and has been offering great payment flexibility to eligible American Express U.S. Consumer Card Members since then. The members can pursue monthly installments utilizing the solution but the purchase amount conducted either online or in-store has to be worth $100 or more and needs to be posted on one’s eligible US Consumer American Express Card. The solution offers the Card Members the option of selecting the best suited plan as per their financial needs. What makes the BNPL solution noteworthy is that all of the abovementioned exclusive benefits can be availed for a fixed fee.

The latest extension of Plan It to Delta will make it easier for Card Members to undertake seamless payments while booking Delta flights. With the summer travel time approaching, the move of incorporating American Express’ BNPL solution within Delta comes at an opportune time. Also, an American Express study found out the dire need for a relaxing vacation among travelers surveyed this year, which further highlights the timeliness of the move. This will lead to an increased utilization of AXP’s BNPL solution, which is expected to fetch greater revenues for the company.

The recent move reinforces American Express’ continuous efforts to bolster its presence in the BNPL space. Plan It seems to be the apt solution for complementing AXP’s endeavors as its utilization has registered significant growth since its introduction in 2017. The company has also left no stone unturned to bring about innovations in the BNPL solution in line with the evolving needs of consumers.

The growing inclination of consumers toward utilizing Plan It while conducting travel-linked purchases might have prompted American Express to expand the accessibility of its solution. Foraying beyond the retail consumer space, AXP continues to integrate these services within the travel space. The latest announcement marks American Express’ another step toward fulfilling its endeavor. While the solution has been included within a partner’s point of sale for the first time, the same was integrated within AmexTravel.com last year for aiding Card Members with hassle-free travel bookings conducted through the site.

American Express is committed to harnessing the well-poised growth of the BNPL market. Numerous pandemic-related financial uncertainties have exerted pressure on the purchasing power of consumers, which left them desiring for an innovative payment solution that enables installment payments at the time of checkout. In addition to this, growing inclination of people toward digital means continues to contribute to the promising growth of the BNPL market. Per Grand View Research, the worldwide BNPL market is anticipated to witness a CAGR of 22.4% over the 2021-2028 period.

American Express continues to pursue a host of measures focused on technology advancements, introduction of secured digital solutions and assisting businesses in regulating payments. These initiatives have bolstered the digital suite and global foothold of the financial services provider. AXP has exhibited its commitment in rolling out innovative card offerings and upgradations of the existing ones in order to cater to the evolving needs of its Card Members.

Shares of American Express have gained 15.1% in a year compared with the industry’s growth of 1.9%. AXP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Similar to American Express, other companies such as Mastercard Incorporated MA, Visa Inc. V and Global Payments Inc. GPN are also active players in the BNPL space.

Mastercard has a program named Mastercard Installments for harnessing the solid growth of the BNPL space. The service is expected to be initially launched across the United States, Australia and the U.K. In 2021, Mastercard included more participants within its BNPL program to better serve customers opting for installment payments while making purchases. Thanks to the MA product, BNPL services have been made available to millions of consumers and merchants worldwide.

Visa’s installment solution was first launched as a pilot in 2019. Gradually, the solution expanded to the United States, Canada, Malaysia and Russia. V’s solution was launched in Australia in 2021. A significant number of issuers, acquirers and fintechs utilize Visa Installments Solution to help customers access BNPL options.

Global Payments has enhanced installment solutions in place, which if integrated within the operations of a company, assures improved checkout experiences. GPN’s company TSYS partnered with Mastercard in 2020 to help issuers and merchants in North America provide flexible payment options. The tie-up empowered customers holding Mastercard cards can divide the payment for their purchases into parts or installments.

Shares of Mastercard, Visa and Global Payments have lost 13.7%, 11.5% and 38.4%, respectively, in a year.


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