Airbnb Expands Pay Later Program to Properties Worldwide

Airbnb is expanding its “Reserve Now, Pay Later” program to properties around the globe.

The vacation rental platform introduced the service last year, and announced its expansion Tuesday (Feb. 17) after seeing strong user engagement in the U.S.

“Since the launch, we’ve seen an overwhelmingly positive response from the community. In Q4, we saw over 70 percent adoption for eligible bookings, and it helped drive the acceleration of nights and seats booked in Q4 2025 from Q3 2025,” Airbnb said in its announcement.

The company also pointed to an in-house survey showing that most respondents valued flexible payment options for booking vacations, with more than half saying they use such services.

That’s in keeping with research from PYMNTS Intelligence, which shows increasing use of buy now, pay later (BNPL) options for booking travel. Close to two-thirds of consumers reported a preference for BNPL options for travel purchases, a sign that the way experiences are financed is beginning to shift.

“The majority—57%—of consumers report that the availability of BNPL at least somewhat influences their choice of where to book events and experiences,” PYMNTS wrote in a recent report. “Similarly, 56% say it at least somewhat influences their merchant selection for travel or vacation bookings.”

Airbnb introduced the “Reserve Now, Pay Later” feature for U.S. customers last year. The program, available for listings with moderate or flexible cancellation policies, allows guests to delay full payment until shortly before the property’s free cancellation window closes.

It joined the company’s other payment options, including “Pay Part Now, Part Later,” which divides payments between booking and check-in, and “Pay Over Time,” offered in collaboration with BNPL provider Klarna.

During an earnings call earlier this month, Airbnb CEO Brian Chesky said that cancellation rates have increased modestly since the program was launched, but are within tested expectations.

“The response was immediate, especially for larger high-priced homes, driving booking acceleration in Q4,” Chesky said. “…We are now expanding this to new markets, and it is a key part of the strength we are seeing in Q1, and will remain a strong tailwind for years to come.”

In addition, Airbnb is migrating hosts toward a simplified single-fee model that displays total prices upfront but preserving host earnings flexibility. The CEO said pricing transparency eases friction and boosts conversion.