Goldman and JetBlue Team installment loan offer
Two days after JetBlue announced it would temporarily consolidate its services in five U.S. cities, the New York airline joined Goldman Sachs to offer an installment loan product.
CNBC reported that the global financial services company launched MarcusPay this week, allowing users to split large purchases over monthly payments.
Marcus, the online-only consumer credit and banking arm of Goldman Sachs, offers personal loans with no late fees up to $ 10,000, with rates ranging from 10.99% to 25.99% for terms of 12. at 18 months, according to its website.
As with most other lenders, the more creditworthy applicants qualify for the lowest rates and longest loan terms, Marcus said.
With fewer customers booking flights right now, MarcusPay could serve as a payment option for vacationers who book packages in the fall, CNBC reported. The Goldman and JetBlue deal was in the works before the coronavirus pandemic put an end to most air travel.
“During this time, our # 1 priority is the health and safety of our customers,” Abhinav Anand, consumer loans manager for Marcus, told CNBC.
The new service will allow JetBlue customers “to buy what matters to them, when it matters, and pay for it in equal payments with no fees or upfront payments,” Anand said.
Partnerships with other companies are expected to follow.
In its review, NerdWallet said Marcus was among the best personal loans in the categories of good credit, debt consolidation, and bank loans.
The deal follows JetBlue’s announcement that it has temporarily consolidated service to Boston, Los Angeles, New York, San Francisco and Washington, DC between April 15 and June 10.
The new schedule comes amid a record drop in flights as the country processes stay-at-home orders during COVID-19. The airline has already told its customers that it plans to cut its flight network by 80% per day in April.
“We are facing new challenges every day and we cannot hesitate to take the necessary steps to reduce our costs amid a dramatic drop in demand so that we can emerge from this unprecedented period as a strong company. for our customers and our crew, ”said Scott Laurence, Jet Blue’s responsible for revenue and planning.
Last fall, PYMNTS reported that Marcus, launched in 2016, lost $ 1.3 billion despite buying startups and building call centers in Utah and Texas, according to the Wall Street Journal. .