China’s millennials pay for Lunar New Year travels on installment plans
Apps let users spread the costs of train and plane tickets
The holiday season can be a stressful time: Just think about all the money spent on travel and gifts. In the US, shoppers can use layaway to buy toys and electronics at big-box stores. In China, millennials are increasingly turning to installment plans to pay for air and train tickets, too.
This Lunar New Year, the Alibaba payment app let users split their train tickets into three interest-free installments.
(Abacus is a unit of the South China Morning Post, which is owned by Alibaba.)
Unlike the Lunar New Year deals though, some of these loans aren’t interest-free. It may feel more affordable to come up with less than a dollar every month instead of paying US$19 in one go. But that also translates to a heavy annual interest rate of 28%.