Airbnb Offers Flexible Payment Option for US-Based Rentals

Airbnb is introducing a new feature called "Reserve Now, Pay Later" for US-based rentals with flexible or moderate cancellation policies. Guests can reserve trips without paying upfront, with the option to pay the full amount eight days before the end of the cancellation period. This move aims to attract budget-conscious travelers and help hosts increase reservations. The feature is not a loan and doesn't require credit checks or interest.

Airbnb, the leading short-term rental platform, has introduced a new feature called "Reserve Now, Pay Later" for US-based rentals with flexible or moderate cancellation policies. This feature allows guests to reserve trips without paying upfront, with the option to pay the full amount eight days before the end of the listing's free cancellation period. This move is designed to attract budget-conscious travelers and help hosts increase reservations [1].

The "Reserve Now, Pay Later" option is not a loan and does not require credit checks or interest. It is available for US-based rental listings that have a flexible or moderate cancellation policy. The feature complements Airbnb's existing payment options, such as "Pay Part Now, Part Later" and "Pay Over Time With Klarna" [2].

The introduction of this feature comes amidst Airbnb's efforts to boost reservations, particularly in the North American market. The company has been facing moderating growth in the region, with overall bookings growth rising by 7.4% in the second quarter, but excluding the region, growth would have been double-digit [2].

Hosts have generally been receptive to products that can boost demand, and those already using flexible or moderate cancellation policies are accustomed to operating with more guest flexibility. Airbnb hopes that the "Reserve Now, Pay Later" feature will continue to be seen as beneficial to both guests and hosts, ultimately leading to increased bookings [1].

While Airbnb has not shared data on user response to the feature during its testing period, it is exploring rolling it out to additional locations. The official launch of "Reserve Now, Pay Later" follows the company's second quarter 2025 earnings call, during which it reported high guest satisfaction with other new features despite post-launch criticism [1].

References:
[1] https://www.phocuswire.com/airbnb-reserve-now-pay-later-launch-payments-short-term-rentals
[2] https://www.bloomberg.com/news/articles/2025-08-14/airbnb-lets-us-guests-defer-payments-until-closer-to-check-in