Tigerair teams up with Zip to offer “book now pay later” flights
You now get more ways to pay (and repay) than ever before.
You now get more ways to pay (and repay) than ever before.Budget airline Tigerair has finally joined the masses, teaming up with Zip to offer interest-free finance via its Zip Pay product for holidaymakers seeking to take advantage of the airline's low-cost fares.
No stranger to repayment schemes, Tigerair has been offering flight finance through Latitude Financial Services since the end of 2016, providing travellers with 6-12 months interest-free payment options, depending on the purchase amount.
And for those wondering, Zip Pay isn't here to replace Latitude. Rather, it's here to expand the airline's payment options and increase financial flexibility for all.
The main difference between the two is the interest-free period, with Zip Pay never charging interest however it does charge account keeping fees. This can be waived however if you pay your balance off in full by the end of the statement month, which could be up to 60 days. Latitude offers a 6 month interest-free payment plan on purchases of $250+ and 12 month interest-free plans on purchases $500+.
Latitude also charges a $10 surcharge during checkout while Zip Pay doesn't come with any upfront fees. Rather it charges a $6 monthly account-keeping fee if you hold an outstanding balance by the end of the statement month. Pay the amount off on time and you should be able to avoid this.
You can make payments in weekly, fortnightly or monthly instalments though you have to make a minimum $40 repayment each month. If you miss a repayment you may be hit with a late-payment fee and your account may be locked.
You can also charge multiple purchases, up to $1,000, to your Zip Pay account.
Zip Pay will be available on domestic Tigerair flights by the end of the month.
How does it compare to Jetstar flights with Afterpay?
Tigerair's partnership with Zip closely follows in the footsteps of Jetstar, which teamed up with rival repayment scheme Afterpay late last year.
Compared to Tigerair's offer, Jetstar's "book now pay later" offering is more limited since it is only offered on purchases of up to $1,200, including the Afterpay fee. It's also pricier, with all purchases incurring a non-refundable fee of 1.5% of your purchase cost. Afterpay is only available on Jetstar flights booked at least two weeks in advance and payments must be made in instalments every two weeks across an eight-week period with the first payment due at the time of purchase.
