Airbnb Introduces "Reserve Now, Pay Later" Feature for US Users

Airbnb has launched a new feature called "Reserve Now, Pay Later" that allows US users to book stays without paying upfront. The feature applies to properties with flexible or moderate cancellation policies and requires users to pay the full amount before the free cancellation period ends. The company is not new to the buy-now, pay-later arena, having launched similar products in the past. The feature aims to address users' preferences for flexible payment options, with 55% of surveyed users preferring such an option.

Airbnb has launched a new feature, "Reserve Now, Pay Later," allowing US users to book stays without upfront payment. This feature is available for properties with flexible or moderate cancellation policies and requires users to pay the full amount before the free cancellation period ends [1].

The new feature joins Airbnb's existing "Pay Part Now, Part Later" and "Pay Over Time With Klarna" options. It aims to address users' preferences for flexible payment options, with 55% of surveyed users preferring such an option [1].

Airbnb tested the payment tool in the US earlier this summer. While some vacation rental community members voiced concerns about increased risks of "empty nights" and unreliable booking confirmations, others saw it as a way to compete with online travel agencies [1].

The company has been generally receptive to products that boost demand, and hosts using flexible or moderate cancellation policies are accustomed to operating with more guest flexibility [1]. Airbnb hopes that hosts will recognize the benefits of "Reserve Now, Pay Later" and see an increase in bookings over time.

The official launch of "Reserve Now, Pay Later" comes on the heels of Airbnb's second quarter 2025 earnings call, where the company reported high guest satisfaction with new features such as Services, despite post-launch criticism [1].

References:
[1] https://www.phocuswire.com/airbnb-reserve-now-pay-later-launch-payments-short-term-rentals