Pay Over Time with Klarna is a new payment option for Airbnb guests in Australia that allows them to distribute the cost of their reservations. This initiative is part of a gradual global expansion, with Klarna and Airbnb intending to launch this payment method in 20 countries across three continents by early 2024.
Initially unveiled as part of Airbnb's 2023 Summer Release in North America, Pay Over Time with Klarna enables Australian guests to apply for a six-week payment plan, where they can settle their reservation cost in four interest-free instalments, payable every two weeks, commencing when the reservation is confirmed.
Officials from Airbnb Australia and New Zealand expressed their satisfaction with the introduction of Pay Over Time with Klarna in Australia, highlighting the system's ability to offer guests the option to extend their payments over a period of weeks or months, regardless of whether they are planning a solo trip or a group outing.
At the checkout stage, guests are presented with the choice to either make a full payment at the time of booking or opt for the Pay Over Time with Klarna feature. The payment process is seamlessly integrated into the platform.
Representatives from Klarna pointed out that Airbnb's guests have consistently expressed a desire for more flexible payment options when booking their stays. The collaboration with Klarna is seen as a solution to fulfil this demand, providing Airbnb guests worldwide with a more versatile payment method.
Pay Over Time with Klarna is simultaneously launched in seven other European countries, namely Czechia, France, Greece, Ireland, Italy, Portugal, and Spain. Expansion into additional regions is expected later in 2023.
In May 2023, Klarna joined up with Airbnb to provide guests in the US and Canada with flexible payment options when booking their stay. Following this partnership, guests in the US and Canada coud apply to pay for stays in four interest-free instalments over six weeks, and for bookings over USD 500, guests in the US could apply to pay monthly. At the time, Klarna’s executives said they were happy to team up with Airbnb and bring their flexible services to travellers all over the world.
For more information about Klarna, please check out their detailed profile in our dedicated, industry-specific Company Database.
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