Airbnb has expanded its Reserve Now, Pay Later feature globally, making it available to all guests booking eligible listings worldwide. The feature, which launched in the US last August, lets travellers secure a booking without any upfront payment. Since the US launch, over 70% of eligible bookings used the option, and Airbnb credited it with accelerating nights booked in Q4 2025. The global rollout suggests the US numbers were convincing enough to warrant a quick expansion.
Why Airbnb Built It In-House
Despite the name similarity, this isn't a traditional BNPL product. There's no credit, no installments, no interest, and no third-party lender involved. Guests book without paying and are only charged the full amount after the free cancellation window closes. If the payment fails at that point, Airbnb gives the guest 72 hours to provide an alternative payment method before cancelling the booking. Airbnb makes the payout to the host 24 hours after check-in, as usual. Since Airbnb always collects from the guest before paying out the host, there's no credit exposure and no meaningful financial risk. Which explains why Airbnb built it themselves: there's no lending infrastructure needed, no underwriting risk, and no regulatory complexity that would require a financial partner.
Reserve Now, Pay Later vs. BNPL
The distinction matters for travelers too. With Reserve Now, Pay Later, the full amount is due before the cancellation window closes. Therefore, costs aren't spread, just delayed. Klarna's Pay Over Time, which Airbnb still offers alongside this feature, works differently: travellers split the total into instalments over several weeks, meaning they never have to pay the full amount in one go. Klarna handles the credit exposure and repayment structure that comes with that. Reserve Now, Pay Later is closer to a flexible reservation hold.
The Real Impact: Fewer Abandoned Bookings, Larger Properties
What it does solve is a real friction problem. High-value bookings, particularly large homes for group travel, often stall because travellers need time to coordinate payment among multiple people. Airbnb's own research found that 42% of travellers had missed out on their preferred accommodation due towhat. There is a trade-off: Airbnb traditionally earns interest on the float between when guests pay and when hosts get paid, and delaying guest payment shortens that window. But the commercial logic appears to point the other way. The CFO pointed to the feature as a key driver of longer booking lead times and a shift toward larger, higher-value properties. For Airbnb, giving up some float income in exchange for higher booking volumes and better conversion on premium listings appears to be a trade worth making. The decision to roll out globally after six months in the US suggests the numbers supported it.
