It looks like the buy now pay later movement has entered the vacation rental space.
Airbnb recently announced flexible payment plans for customers to book housing on their using Klarna, the major installment-loan tool.
”We’re thrilled to team up with Airbnb and bring Klarna’s flexible services to travelers all over the world!” said Sebastian Siemiatkowski, Co-founder and CEO of Klarna in a news release. “We know that one of the top requests from Airbnb guests was more options to pay for their stays, so we’re super excited to offer interest free payment options and support their mission to create a world where anyone can belong anywhere.”
The companies said US and Canadian guests can pay for stays in four interest-free installments over six weeks, and for bookings over $500, guests in the US can apply to pay monthly.
This is an addition to the already booming BNPL market, which is expected to reach $3.98 trillion by 2030. Although it may sound appealing, some experts warn customers should be extremely responsible when entering into quick installment loan programs, especially for leisure experiences like vacations stays.
“Responsible payment offerings are of utmost importance for businesses using BNPL, especially because users are primarily younger and minority groups who are more likely to have no credit history,” says Max Lillard, senior finance analyst at Capterra per a news release. “When implemented correctly, business can help customers access previously gated financial opportunities, and in some cases, help them build credit.”