PayPal Pay Later Integration
My Digital Experience team integrated PayPal’s Pay in 4 buy-now-pay-later (BNPL) functionality into the Southwest booking experience, providing customers with flexible payment options for their travel.
The Problem
Customers booking travel face budget considerations that can delay or prevent purchases:
- Upfront cost barrier - Full payment required at booking
- Credit constraints - Traditional credit limits may be maxed
- Cash flow timing - Salary cycles don’t always align with travel needs
- Higher fare hesitation - Customers downgrading to afford immediate payment
These barriers meant some customers weren’t booking their preferred options or were delaying travel altogether.
The Solution
We integrated PayPal Pay in 4, allowing customers to split purchases into four interest-free payments:
How It Works
- Select Pay in 4 at checkout (for eligible purchases)
- Pay 25% today - First installment at booking
- Three more payments - Automatically charged every two weeks
- No interest - Pay exactly what you see, no hidden fees
Implementation Scope
- Full booking flow integration on desktop
- Mobile web checkout support
- Clear eligibility messaging ($30-$1,500 purchase amounts)
- Seamless PayPal authentication flow
Merchandising
- Pay in 4 messaging on fare displays
- Clear installment breakdowns at checkout
- Eligibility indicators throughout the funnel
- Educational content for first-time BNPL users
Results
The PayPal Pay in 4 integration delivered measurable impact:
- Increased conversion for higher-fare bookings
- Higher average booking value when BNPL available
- New customer acquisition from BNPL-preferring demographics
- Positive customer feedback on payment flexibility
Market Alignment
Buy-now-pay-later has become an expected payment option, especially for younger travelers. By offering Pay in 4, Southwest meets customers where they are with the payment flexibility they want.
Customer Value
Travel should be accessible to everyone. By providing flexible payment options, we help customers book the flights they want without financial stress, while PayPal handles the payment logistics and risk.
Launched PayPal Pay in 4 option, expanding payment flexibility and increasing booking conversion for higher-fare purchases.
