PayPal has partnered with hotel payment provider Selfbook to enable users to search for and book hotels directly within the PayPal app.

This new feature is located in the app’s Offers section and allows users to filter results by travel dates and the number of guests.

Payments can be made using PayPal, and selected hotels will offer the PayPal Buy Now, Pay Later (BNPL) option.

It remains unclear if all hotels in Selfbook’s catalog will be available through this feature.

According to PayPal, its payment products have contributed to an 84% increase in online travel payments.

The partnership also allows Selfbook to integrate PayPal’s enterprise payment suite and checkout products. This integration facilitates credit card payments for its hotel clients.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ BNPL’s rapid growth reshaping travel spending habits

The PayPal-Selfbook partnership taps into a rapidly expanding market for flexible travel payments, with data showing significant consumer demand.

The global Buy Now, Pay Later market specifically for travel is projected to reach $89.7 billion by 2032, growing at a compound annual rate of 7.9% 1.

This growth is particularly driven by younger travelers, with Gen Z and Millennials 50% more likely to use BNPL options for personal travel compared to other generations 2.

The timing is strategic, as nearly one in five American travelers already plan to use BNPL services for upcoming summer vacations, showing mainstream adoption of what was once a niche payment method 2.

For travel companies, BNPL options have proven to increase conversion rates and foster customer loyalty, with many users becoming repeat customers after their initial BNPL experience 1.

This partnership allows PayPal to capitalize on changing consumer expectations while addressing the reality that 44% of Americans plan to take vacations requiring flights or hotels this summer, with average expected spending of $3,861 per trip 3.

2️⃣ PayPal’s evolution from payment processor to booking platform