Airbnb and Klarna Expand Pay Over Time Program to UK

Airbnb continues the phased global rollout of its Pay Over Time with Klarna option, launching it in the United Kingdom.

The online marketplace for lodging plans to offer this alternative payment method across three continents by early 2024, the companies said in a Monday (Dec. 11) press release.

Pay Over Time with Klarna, which allows guests to pay for their stay in three interest-free installments over two months, is already available in North America and eight countries across Europe, according to the press release.

“We’re pleased to bring Pay Over Time with Klarna to the U.K., giving guests greater flexibility to spread their payments over a number of weeks or months,” Amanda Cupples, general manager of Northern Europe at Airbnb, said in the release.

In the countries where this option is available, Airbnb guests are given the choice at checkout to either pay for their reservation in full at the time of booking or to spread the cost of their reservation with Pay Over Time with Klarna, according to the press release.

The guests are then taken seamlessly through to the payment platform, the release said.

“Airbnb tells us that one of the top requests from their guests is more ways to pay for their stays,” Raji Behal, head of Southwest Europe, U.K. and Ireland at Klarna, said in the release. “We’re thrilled to bring Klarna’s flexible payment options to Airbnb guests around the globe.”

The eight European countries in which Pay Over Time with Klara is already available include Czechia, France, Germany, Greece, Ireland, Italy, Portugal and Spain, according to the release. More are expected to be added early next year.

In the U.K., guests can now use this option to pay for reservations priced between 35 pounds and 4,000 pounds, per the release.

PYMNTS Intelligence has found that when it comes to paying for travel expenses, younger generations tend to opt for buy now, pay later (BNPL) options, while older generations lean more toward credit cards.

In addition, for all budget-conscious travelers, digital tools such as all-in-one digital travel management and payment apps have proven to be invaluable, according to “The Credit Economy: How Consumers Financed Their Summer Travel,” a PYMNTS and i2c collaboration.