It's tempting to book a once-in-a-lifetime holiday abroad, but the cost of flight tickets from New Zealand can be a hefty amount. If paying the upfront cost of a trip has you sweating, consider flight and payment options like Pay Later Travel which helps break up large costs.

Read on to learn more about Pay Later Travel, how it works and the pros and cons of using it for your next trip. And if you want to make a trip abroad even more stress-free, check out the multi-currency account from Wise which lets you spend and swipe like a local abroad.

What is Pay Later Travel?

Pay Later Travel provides users with a payment plan for flight tickets to specific destinations. Founded in Sydney in 2017, Pay Later Travel lets you book flights and provides plan options that allow for a portion of the cost to be paid as a down payment and the balance repaid in periodic instalments. It can be compared to “Buy now, pay later” plans available at large retailers, but this is solely for flights.

Residents of New Zealand can use Pay Later Travel to book travel while also getting some breathing room by splitting up the payments.

After the down payment, the instalments are to be paid weekly or every 2 weeks for up to 26 weeks. One of the major benefits of using Pay Later Travel is that there are no interest charges or credit checks.¹

Next, let’s take a look at how the process works.

Pay Later Travel: How Does It Work

To use a Pay Later Travel payment plan, you must first book your flight through the company’s website. Flights booked outside of the website won’t be eligible.

Once you’ve found your flight, you can select the payment plan that works for you. There is an upfront deposit of at least 10% of the ticket cost and the rest is repaid through fixed instalments. The length of time you select to pay back Pay Later Travel will determine how much each payment will be. So typically the longer the payment plan, the lower your instalment payment will be.

You can choose weekly or bi-weekly payments for up to 6 months to repay the balance. The money for each instalment is deducted automatically from your bank account.

It is important to note that your entire balance must be paid off before you receive your flight’s e-ticket from Pay Later Travel. So your plan - and your budget- will need to accommodate for payments within the time frame of purchasing your ticket and when you leave.

You will not be able to book any flights that fall within two weeks of booking as Pay Later Travel can’t structure a payment plan for 14 days or less.²

Unique Benefits of Pay Later Travel

Travelling now and paying later has its advantages. Here’s how NZ travellers can benefit from using Pay Later Travel:

• You can book flight tickets without worrying about whether you can afford the lump sum payment.
• There is no interest with Pay Later Travel, which may make it cheaper than booking with a credit card and paying the card off over time.
• Only a minimum deposit of 10% is required to book the flight.
• You can take a few months to pay off your balance.
• You can choose weekly or bi-weekly instalments, whichever works better for you and your cash flow.
• No credit checks.
• Booking flight tickets in advance is cheaper and Pay Later Travel can protect you from future ticket price increases.
• You can enjoy your international holidays since your flight tickets must be paid off before leaving.
• Pay Later Travel offers excellent customer support and an easy booking experience.

Booking your Flights with Pay Later Travel

Here’s a step-by-step guide on booking your flights with Pay Later Travel:³

1. Visit the Pay Later Travel website and click on “Book Now.”
2. Choose your departure airport, destination and travel dates.
3. Search for relevant flights
4. Review the deposit amount and total costs
5. Select the flight that works best for you
6. Enter the passenger information
7. Proceed with your down payment.
8. Agree to the terms and conditions, and make a plan for having the appropriate amount of funds in your account for the instalment payments.
9. Complete the booking. Save your flight booking and note down the repayment schedule.
10. You will receive your flight tickets by email after paying off the instalments in total.

Pros and Cons of Pay Later Travel

Pay Later Travel can make things easier for your trip and your wallet, but it may not always be the best fit. Here are points to consider when weighing whether to use Pay Later Travel:

Pros of Pay Later Travel

• You don’t need to pay for an entire flight upfront, making it easier to book long-haul or flights for exotic destinations.
• The cost of a flight ticket is broken up into manageable instalments.
• No interest payments.
• No credit checks so your credit won’t be affected, unlike other loan offers.
• You can choose weekly or biweekly payments.
• Payments are automatically deducted from your bank account, making them one less thing to worry about.
• Pay Later Travel may offer a discounted rate on flights.

Cons of Pay Later Travel

• There are a limited number of destinations.
• You may find cheaper flight tickets on other sites.
• The instalments are automatically deducted from your bank account, so if you don’t have enough in your account at the time of payment, you may be hit with a bank overdrawn fee.
• If you don’t pay back your balance in full, you won’t receive your flight ticket.
• If you book a non-refundable ticket but cancel it, you have to continue paying your instalments.
• You don’t accrue any rewards, points or miles like with a credit card.

Some may have questions on whether Pay Later Travel is trusted. Pay Later Travel reviews show that it is a reliable platform, and many people have benefited from using it to plan their travel, providing you with a secure way to book your flights.

If you are considering alternatives, many airlines offer ‘Buy now, pay later’ options at checkout through companies like Affirm, Tabby, Clearpay, Klarna, Afterpay, and Postpay.⁴

Comparison: Pay Later Travel vs. Traditional Booking Methods

Which is the better option—Pay-Later Travel or booking the traditional way? Let’s compare the two options to see which is a better fit for your next trip:

If your destination is on the list and you can comfortably manage your cash flow for the flight payments, then Pay Later Travel can be a good option. But if you are looking for the cheapest flight available to your specific destination, booking traditionally can save you money, especially if you pay off your credit card balance in time.

Meet Wise: The Travel Card That Saves You Money on International Transactions

Going abroad can be exciting, but it can also make a dent in your wallet. To save money, sign up for Wise. Wise lets you make international transfers right from your mobile or computer, from or on the go. If you are planning a trip and need to make reservations, Wise can help you secure your reservations with direct local payments.

Wise uses smart tech to make local payments to bank accounts abroad. That means you can send money for bookings, reservations or travel costs and your recipient gets the money in their local currency in their bank account. All you’ll pay is one low transfer fee on each transfer.

Sign up for Wise today

Wise uses the real mid-market exchange rate on every transfer, so you don’t lose money to extra fees like at a bank or credit card. Instead, you get a transparent exchange rate that can save you money. So before you head abroad, see how Wise can make international payments simple.

If you want an easier way to spend money overseas, check out the Wise multi-currency account. It is one account where you can send, spend, and hold over 40+ currencies and pay locally with a linked debit card.

Sources verified on 3 September 2024.