Airbnb and Klarna Unveil “Pay Over Time” in the UK
In a strategic partnership to enhance guest convenience, Airbnb and Klarna have introduced a groundbreaking payment option known as “Pay Over Time” in the United Kingdom. This innovative offering enables guests to spread the cost of their reservations over a flexible payment plan, ultimately making travel more accessible and affordable. The collaboration between these industry giants is part of a broader global rollout plan to extend this payment solution across three continents by early 2024.
🚨 𝗡𝗲𝘄𝘀 𝗙𝗹𝗮𝘀𝗵: @Airbnb launches Pay Over Time with @Klarna in UK 🇬🇧 to offer more flexible payments for guests:
Last week I already shared the news about the launch in Germany. The launch is part of a phased global roll-out which will see Klarna and Airbnb offering an… pic.twitter.com/u08iKJiulS
Launched initially during Airbnb’s 2023 Summer Release in North America, “Pay Over Time with Klarna” allows UK-based guests to apply for a unique payment plan. This plan will enable them to divide their reservation cost into three interest-free instalments over two months. The introduction of Klarna’s seamless and adaptable payment solutions has revolutionised how guests book their stays, making exploring the world’s diverse accommodations easier.
Amanda Cupples, General Manager of Northern Europe at Airbnb, expressed her enthusiasm for this partnership, stating, “We’re pleased to bring Pay Over Time with Klarna to the UK, giving guests greater flexibility to spread their payments over several weeks or months. Whether booking a solo trip or organising a get-together with friends, choosing the right payment plan has become a lot easier.”
This new payment option is presented to guests during checkout, allowing them to make an informed decision. Guests can pay for their reservation in full when booking or opt for the “Pay Over Time with Klarna” option, seamlessly transitioning to the payment platform.
Global Expansion and Accessibility
The success of “Pay Over Time with Klarna” is evident from its rapid expansion. In addition to its North American launch, this payment solution has been introduced in eight other European countries, including Czechia, France, Germany, Greece, Ireland, Italy, Portugal, and Spain, with further expansion planned for early next year.
For guests in the UK, “Pay Over Time with Klarna” is available for reservations priced between £35 and £4,000, ensuring accessibility for a wide range of budgets. This move aligns with the evolving preferences of travellers, as younger generations increasingly opt for “buy now, pay later” (BNPL) options for their travel expenses.
The Future of Travel Payments
As the travel industry continues to adapt to changing consumer preferences, digital tools and innovative payment options have become indispensable for budget-conscious travellers. With the introduction of “Pay Over Time” in the UK, Airbnb and Klarna have not only addressed a top request from guests but paved the way for a more flexible and accessible future in travel payments.
Raji Behal, Head of Southwest Europe, UK & Ireland at Klarna, emphasised the importance of providing diverse payment options to Airbnb guests, stating, “Airbnb tells us that one of the top requests from their guests is more ways to pay for their stays. We’re thrilled to bring Klarna’s flexible payment options to Airbnb guests around the globe.”
In conclusion, the collaboration between Airbnb and Klarna has ushered in a new era of flexibility and convenience in travel bookings, setting a precedent for the industry. As the “Pay Over Time” option expands globally, travellers can expect an enhanced booking experience catering to their diverse needs and preferences. Whether it’s a quaint cottage in the countryside or an exotic retreat in a far-flung destination, the future of travel payments is undoubtedly more accessible and accommodating than ever before.
