Pay in 3 PayPal Installments helps boost Vueling sales

72% of Spanish consumers say they are more likely to buy from a store again if it offers a “Buy Now, Pay Later” solution 5. Source: PayPal.

Vueling is a digitally native airline that, in the last four years, has detected a significant change in customer behavior, who increasingly prefer to carry out their transactions through mobile devices instead of computers. In response to this trend, the airline set out to offer a seamless payment experience tailored to customers using different devices. This strategic move responds to the reality that 1 out of every 2 Spanish consumers prefers to make their purchases and payments online through mobile devices(2).

Pay in 3 PayPal Installments: redefining payment flexibility

To help increase your share of mobile sales and offer greater flexibility to your customers, Vueling resorted to the solution PayPal 'Buy Now, Pay Later'Pay in 3 installments. Available in Spain since the end of 2021, this credit solution allows customers to split their purchases into three identical installments, without incurring interest or commissions, for amounts between 30 and 2,000 euros (3). This “Buy Now, Pay Later” (BNPL) option has quickly gained interest. 72% of Spaniards say that they are more likely to buy from a store again if they have this financing option(4).

One of the main advantages of the Pay in 3 Installments solution is its complete integration into the payment process with PayPal, which did not require any additional process on the part of Vueling. This integration has expanded payment options for Vueling customers in Spain, especially when they use mobile devices.

Spanish consumers especially value flexibility, with 7 out of 10 noting that “Buy Now, Pay Later” solutions allow them to purchase better quality products(4). With the Pay in 3 Installments solution, PayPal is helping Vueling customers better manage their travel budgets.

An increase in sales and transaction value

After the first year showing PayPal's Pay in 3 Installments option, Vueling observed a 210% increase in sales made through Pay in 3 Installmentsmuch faster growth than expected(1). “We have been impressed by the adoption rate. Once again, this reflects how we have been able to identify our customers' needs and offer them a practical and effective solution,” says Eric Olmos, Fraud and Payments Consultant at Vueling.

In the case of Vueling, the Pay in 3 Installments solution helped exceed all expectations. Not only did a significant number of clients opt for payment in installments, but the ticket or average transaction value in Pay in 3 Installments increased by 8%. Furthermore, Vueling's average ticket for purchases made with the Pay in 3 Installments solution was 64% higher than the average ticket for “standard” purchases made with PayPal in Spain (1).

Pay in 3 PayPal Installments helps boost Vueling sales

Vueling saw a 210% increase in sales made through PayPal's Pay in 3 Installments solution. Source: PayPal.

To go one step further, Vueling also integrated messaging for Pay in 3 Installments in Spain. This helped customers see the breakdown of each installment in real time, allowing them to make more informed decisions about their expenses. At a time when security is one of the main concerns when purchasing online, consumers value having more information when making their decisions. In fact, the lack of security guarantees in payments and confusing payment processes are the main barriers that Spaniards encounter when purchasing online(2), according to a study by PayPal.

PayPal is easy to use and is a well-known and trusted brand. In this sense, 1 in 3 Spanish buyers affirm that PayPal is their preferred payment option(2) for purchasing online.

A turning point for the airline sector

The cooperation between Vueling and PayPal with the Pay in 3 Installments solution has been a success. Its excellent reception highlights the potential of innovative solutions to help increase sales and customer loyalty in the airline industry. As the digital landscape continues to evolve, adaptability and customer focus are essential for businesses to thrive, and this collaboration is an illustrative example of how those goals can be achieved. With the help of PayPal's BNPL solution, Vueling has not only responded to the needs of its customers, but has also opened new avenues for growth on a global scale. This transformative cooperation is helping to redefine the way travelers access and pay for airline tickets, setting a new benchmark for the sector.

José Domínguez, Head of Strategic Clients at PayPal Iberia: “Flexibility in payment is key to attracting new clients and building loyalty among current ones”

Pay in 3 PayPal Installments helps boost Vueling sales

José Domínguez, Head of Strategic Clients at PayPal Iberia. Source: PayPal.

With more than 15 years of experience in payments, commercial strategies and client management, Jose Dominguez He is an expert in leading large companies to success thanks to his deep knowledge of the sectors in which he works, including travel. In this interview, he discusses the payment trends in the travel industry and how PayPal is working on these innovations.

Considering economic uncertainty, what trends have you observed at PayPal among travel consumers that the tourism sector should take into account?

We have observed a persistent interest among Spaniards in traveling. Although traveling is often perceived as a luxury, many people save money to see the world or visit loved ones. According to our report 'PayPal Travel in Europe 2023', 6 out of 10 Spaniards plan to continue traveling the same or more this year, although it is true that almost 90% show great interest in saving on all their travel expenses.

How is PayPal innovating to offer options that respond to travelers' concerns?

As consumers become more concerned about the price and security of payments, new challenges arise for businesses. It is essential that companies listen to consumers and, today, Payment flexibility has proven to be essential to attract new customers and retain current customers..

PayPal is committed to offering a wide range of innovative solutions that help businesses succeed in an increasingly digitalized global economy. One of these innovative proposals is PayPal's Pay in 3 Installments solution, designed to help consumers manage their expenses. 6.5 million users of our application in Spain.

The Pay in 3 Installments solution has gained popularity, especially among Generation Z and Millennials, with almost half of millennials (49%) saying they would abandon a purchase if a “Buy Now, Pay Later” option » was not available(4).

The success of Vueling with this solution is a good example of how the correct integration of a payment process that helps respond to consumers' demands for flexibility, security and simplicity can help increase sales, average transaction value and customer satisfaction.

You raised the issue of security, which is a common concern in online shopping. What role do new technologies play in making payment processes more secure and efficient?

The customer experience begins long before the plane takes off; It starts the moment he decides to book a trip. I always emphasize the need to provide a first-class booking experience. Customers value personalized, secure, fast and easy experiences, and the payment process is a fundamental part. That is why it is worth offering a simple, fluid and agile payment experience.

Online platforms have a great opportunity to improve their customer experience by simplifying their payment processesoffering various payment methods and helping customers pay for their trips the way they prefer.

PayPal's business is built on trust, so security and protection of payments and customer data are basic pillars. In the third quarter of this year, PayPal processed 6.3 billion transactions Worldwide. This not only allows us to understand consumer spending patterns and behavior, but also puts us in a privileged position to help incorporate innovative solutions and contribute to the creation of a more transparent, personalized, inclusive and targeted payment system. to the client.

(1) Comparison made by PayPal between the sales made by Vueling in Spain with the Pay in 3 Installments solution in the first quarter of 2022 and the first quarter of 2023. These results may vary substantially depending on the company. All the conclusions of the success story 'Vueling sales grow by 210% with PayPal Pay in 3 installments' can be consulted at: This content is provided for informational purposes only. You should always obtain independent business, tax, financial and legal advice before making any business decisions.

(2) PayPal eCommerce Annual Index 2022. Survey carried out by the research firm ACA for PayPal during June and July 2022 among Spanish consumers and companies.

(3) The APR is 0%. Pay in 3 Installments financing is subject to PayPal approval and compliance with conditions. For more information, visit Financing is a binding commitment and must be repaid. Check your repayment capacity before making any commitment.

(4) Data from a PayPal survey conducted by TRC Market Research in September/October 2021 in Spain with 1,000 adult online consumers.

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