Airbnb launches Pay Over Time in the UK

According to the official announcement, the launch is part of a phased global roll-out which will see Klarna and Airbnb offering an alternative way to pay in for guests across three continents by early 2024.

Airbnb and Klarna have joined forces to launch Pay Over Time, a new way for guests to spread the cost of their reservation.

First launched in North America as part of Airbnb’s 2023 Summer Release, Pay Over Time with Klarna allows guests in the UK to apply to pay for their next stay in three interest-free instalments over two months. With Klarna’s flexible payment solutions, booking stays around the world have been made easier and more accessible.

Whether customers are booking a solo trip, or organising a get-together with friends, the purpose of the partnership is to give the option of the right payment plan. Guests are presented with the option at checkout to either pay for their reservation in full at the time of booking or to Pay Over Time with Klarna, and are smoothly taken through to the payment platform.

Pay Over Time with Klarna recently launched in eight other countries across Europe including Czechia, France, Germany, Greece, Ireland, Italy, Portugal, and Spain, with more expected early in 2024.

Pay Over Time with Klarna is available to guests in the UK for reservations priced between GBP 35 and GBP 4,000.

More recent updates from Airbnb

In October 2023, Airbnb launched the Pay Over Time with Klarna system in Australia. 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.

In September 2023, US-based commerce technology company, Payoneer, expanded its relationship with Airbnb to help hosts get paid in local currencies. As part of these developments, Payoneer would continue to serve as a preferred payment provider for Airbnb across various countries, striving to ensure fast and localised payments for hosts. Payoneer's platform is designed to connect businesses worldwide through a well-established infrastructure and an extensive network of bank partners. This collaboration allows Airbnb hosts in specific regions to receive payments locally and provides them with versatile options for utilising and accessing their funds.