A travel Buy Now Pay Later firm, which has raised nearly $180 million, has temporarily ceased lending and taking on new customers.
Fly Now Pay Later was launched in 2015 looking to revolutionise the travel industry by tapping into the boom around Buy Now Pay Later, which allows consumers to pay for goods in installments, typically interest-free.
The London-based startup said it made the decision to stop lending and onboarding new customers as it was “making improvements “ to its business.
Based in the UK, Fly Now Pay Later lets travellers spread the cost of booking a holiday or trip over up to 12 months.
The service is available to consumers via its app or at the checkout of travel merchants.
A notice on its website says it has now stopped taking on new customers and further lending.
The notice says:
“We are currently making improvements to our business to better serve our customers.
"As such, we are not currently taking on new customers, or engaging in further lending, while we put these improvements in place.
“Rest assured, existing accounts and services will continue as usual and our customer service team remains at your disposal to answer any queries or concerns you might have during this period.”
Fly Now, Pay Later's press office was unavailable but a support officer said it could not “provide a specific timeframe for when our services will be fully restored”.
In January 2022, the startup raised $75 million in debt funding from US investment firm Atalaya Capital Management, which it earmarked for US expansion.
In 2021, it closed a £45 million Series A funding round, led by asset managers Taurus Wealth Advisor and Revenio Capital.
According to Crunchbase, it has raised a total of $177.7 million.
Fly Now Pay Later was founded by Jasper Dykes, who according to his LinkedIn profile is a “fintech entrepreneur”.
It has struck partnerships with, amongst others, Malaysia Airlines and the airline payments network Universal Air Travel Plan.
Lead image: Fly Now Pay Later founder Jasper Dykes. Photo: Uncredited.