Is buy now, pay later a road to more debt?

Booking giant Expedia is partnering with Affirm to provide buy now, pay later (BNPL) installment payment methods in the travel sector. Touted as an advance in flexibility and choice, the option will appear when booking select lodging and travel packages. But in a world of travel-specific credit cards, the question remains: are BNPL purchases worth it, or do they come with their own baggage? We unpack the details so you know exactly what you’re getting. 

How Expedia and Affirm will work together

Launched in the mid-1990s, Expedia is a well-established travel portal where you can book flights, hotels, packages, cruises, rental cars, and more. Commonly, people pay for reservations using a credit card, but according to the company’s recent press release, there’s a demand for more payment options and transparency.

Enter Affirm. As a partner, Affirm will offer Expedia customers the option to buy select bookings and pay for them over time on a monthly payment plan.

The fine print

Not all Expedia offerings are eligible for the BNPL payment option. In Canada, it will apply to select lodging and packages on Expedia, and on properties found on Hotels.com and VRBO.

When you select an eligible booking, you’ll have the option to pay with Affirm on a customizable monthly payment plan. You’ll be able to choose:

• Term of repayment (up to 24 months)
• Frequency of repayment (bi-weekly or monthly)
• Interest rate (from 0–32% APR, subject to provincial regulatory limitations)

Affirm approves the plan instantly by doing a soft credit check, meaning it will not affect your credit score.

Is it worth it?

Accommodations are usually a top-line item in any travel budget, and many Canadians don’t have the cash up front. This is where credit cards may come in. When you spend on a credit card, you can pay off the balance over time. Plus, many cards—particularly travel credit cards—come with perks and extras like included travel insurance, points, or priority boarding. 

Featured travel credit cards

However, regular credit cards charge an interest rate of between 19.99% and 24.99%, making every month of repayment delay even more costly.

With Affirm’s BNPL option, you choose the length, frequency, and rate of your plan and the payments are withdrawn automatically from your account. Some plans offer 0% interest, and you see everything up front before you approve. There are no hidden fees, late fees, or compounding interest. 

Note: When you use Affirm, you won’t 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 to be aware of before you use buy now, pay later. Namely, that you might over-borrow and/or get into more debt than you can handle. Let’s look at why this might be.

Buy now, pay later has a psychological appeal. It provides the thrill of a purchase while pushing the reality of repayment to the future. This may also account for why purchasers using BNPL often buy more than they intended to (between 10% and 40% more), which can lead to ballooning debt.

There’s also a demographic dimension to BNPL services in that they may appeal most to people who are the least financially stable. This is because, unlike with credit cards, users can access a BNPL loan with only a soft credit check, which is a lower barrier to borrowing. 

Booking travel with BNPL

Buy now, pay later can make travel feel 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 feels like it costs. And when the upfront cost feels smaller, it’s easier to upgrade.

Used intentionally, BNPL can be a helpful tool. Used impulsively, it can amplify overspending and regret. Before you click “Book Now,” make sure you’re planning not just for the trip, but for the payments that follow.

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