Airbnb Inc. has introduced a “Reserve Now, Pay Later” feature for U.S. customers, allowing travelers to book certain domestic stays without making an upfront payment.
The program, available on listings with moderate or flexible cancellation policies, lets guests delay full payment until shortly before the property’s free cancellation window closes. Airbnb said hosts’ existing cancellation terms remain unchanged and payments are collected before the free cancellation period ends, giving hosts time to rebook if a reservation is canceled.
The company said the option is aimed at travelers seeking more flexibility, particularly groups coordinating payments among multiple people. The new offering joins Airbnb’s other payment options, including “Pay Part Now, Part Later,” which splits payments between booking and check-in, and “Pay Over Time,” offered in partnership with buy now, pay later (BNPL) provider Klarna.
Airbnb has been expanding its payment flexibility tools as consumers increasingly favor installment and deferred payment products. The company said the “Reserve Now, Pay Later” feature could drive more bookings by lowering the barrier to commitment for cost-conscious travelers.
Earlier this month, Airbnb posted strong Q2 results, signaling resilient consumer demand for travel despite global tariffs and geopolitical uncertainty, but cautioned growth could slow later this year amid new trade levies. The company is pushing a revamped technology platform to expand into longer-term rentals and concierge services, redesigning its app for greater transparency, and deploying a customer service AI bot now used by half its users.
Consumers have been looking for more flexible payment options in recent years. PYMNTS Intelligence estimates that in 2024, BNPL transactions in the United States alone amounted to $175 billion.
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“People want certainty, especially in an environment where, economically, things are a bit uncertain,” Ed O’Donnell, CEO of Versatile Credit, observed in the PYMNTS eBook “Reimagining Consumer Finance: The Strategic Rise of Buy Now, Pay Later.”
In the same eBook, Seema Chibber, executive vice president for Core Payments in North America at Mastercard, observed “We’ve literally seen an explosion in the preference for installments … [with] people seeking expanded buying power, control and financial management, and the flexibility and convenience of a digital experience.”
