How Expedia and Affirm will work together
Launched in the mid-1990s, Expedia is a renowned travel portal where you can book flights, hotels, packages, cruises, rental cars and more. Normally people pay for reservations with a credit card, but according to recent data from the company press releaseThere is a demand for more payment options and transparency.
Enter Confirm. As a partner, Affirm offers Expedia customers the ability to purchase select bookings and pay for them over time through a monthly payment plan.
The small print
Not all Expedia offers are eligible for the BNPL payment option. In Canada, it applies to select properties and packages on Expedia, as well as properties found on Hotels.com and VRBO.
When you select a qualifying booking, you have the option to pay with Affirm on an adjustable monthly payment plan. You can choose from:
- Repayment term (up to 24 months)
- Repayment frequency (biweekly or monthly)
- Interest rate (from 0-32% APR, subject to provincial legal restrictions)
Affirm immediately approves the plan by running a soft credit check, meaning it won’t affect your credit score.
Is it worth it?
Accommodations are usually an important part of any travel budget, and many Canadians don’t have the money up front. This is where credit cards can come into play. When you spend with a credit card, you can pay off the balance over time. Additionally, many cards, especially travel credit cards, include benefits and extras, such as included travel insurance, points or priority boarding.
Recommended travel credit cards
recommended
Scotiabank Gold American Express Card
Earn up to 6 Scene+ points per $1 spent and save on foreign transaction fees.
GO TO THE SITE
Interest rates:
20.99% purchase, 22.99% cash advance, 22.99% balance transfer
Welcome offer:
Value $450
Earn 25,000 Scene+ bonus points by making at least $2,000 in daily qualifying purchases in the first 3 months. Earn an additional bonus of 20,000 Scene+ points when you spend at least $7,500 on daily eligible purchases in your first year.
recommended
American Express Cobalt Card
Earn up to 5 MR Points per $1 spent and transfer them to partner loyalty programs.
GO TO THE SITE
Interest rates:
21.99% purchase, 21.99% cash deposit, N/A balance transfer
Welcome offer:
Value $150
Earn 1,250 points for every month you spend €750, up to a maximum of 15,000 points.
recommended
MBNA Rewards World Elite Mastercard
Receive 5 MBNA Rewards points per $1 in five categories, plus a 10% annual bonus in points.
GO TO THE SITE
Interest rates:
21.99% purchase, 22.99% cash advance, 22.99% balance transfer
Welcome offer:
Value $200
Earn 20,000 bonus points (approximately $165 in cash back value) after you make $2,000 or more in qualifying purchases within the first 90 days.
However, regular credit cards charge an interest rate between 19.99% and 24.99%, making each month of repayment delay even more expensive.
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With Affirm’s BNPL option, you choose the length, frequency and rate of your plan and payments are automatically debited from your account. Some plans offer 0% interest and you see everything up front before you approve it. There are no hidden fees, late fees or compound interest.
Remark: When you use Affirm, you will not receive any applicable points or other benefits offered by your credit card.
The Dangers of BNPL
According to the Financial Consumer Agency of Canada (FCAC)There are some risks you should consider before using buy now, pay later. Namely that you may borrow too much and/or acquire more debts than you can handle. Let’s look at why this might be so.
Buy now, pay later has a psychological appeal. It provides the thrill of a purchase and pushes the reality of repayment into the future. This may also explain why buyers using BNPL often buy more than they intended (between 10% and 40% more), which can lead to increasing debts.
There is also a demographic dimension to BNPL’s services, in that they may be most attractive to those who are the least financially stable. This is because unlike credit cards, users can access a BNPL loan with just a soft credit check, which provides a lower barrier to borrowing.
Book trips with BNPL
Buy now, pay later can make travel seem more accessible, flexible and within reach – and that’s exactly where the risk lies. By allowing you to break large expenses into smaller installments, BNPL blurs the line between what a booking costs and what it costs feels like it costs. And if the initial cost seems smaller, it’s easier to upgrade.
Intentionally, BNPL can be a useful tool. If used impulsively, it can increase overspending and regret. Before you click ‘Book Now’, make sure you plan not only the trip, but also the payments that will follow.
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