SAN FRANCISCO–Airbnb has announced new partnerships with Stripe and Klarna aimed at beefing up its payments offerings, including new buy now, pay later (BNPL) options.
The tie-in with Stripe lets Airbnb customers pay with a linked U.S. bank account, and they don’t have to reenter bank details for future bookings.
Meanwhile, its new partnership with Klarna will allow users in the U.S. and Canada pay for bookings in four interest-free installments over six weeks. For bookings over $500, guests in the U.S. can apply to pay monthly. More markets will be added throughout the year, according to the company.
“Airbnb is widening the payment options it offers to attract more users and increase spending on the platform,” reported Insider Intelligence.
Large Trend
Insider Intelligence further noted the new payments partnerships are just part of a larger trend, forecasting that:
- A2A payments will grow. “We expect digital bank transfer volume to increase 9.1% this year to $97.22 billion, per our forecasts. Enabling this method with Stripe gives Airbnb users more checkout choices and an improved customer experience, both of which should strengthen retention.”
- Customers want more flexible payments. “Seventy-five percent of consumers said they are more likely to choose a pay-by-installment option like BNPL to fund travel over the next year due to economic uncertainty, per a 2022 Amadeus survey,” Insider Intelligence said. “That demand can drive higher spending on Airbnb.”
Benefits for Other Platforms
Insider Intelligence further noted that both Stripe and Klarna can benefit from tapping Airbnb’s huge reach. The site booked 121.1 million nights and experiences in Q1 and generated $20.4 billion in gross booking value, up 19% year over year on the back of strong travel demand, the report added.
Airbnb has become just the latest retailer to join Klarna’s network of 500,000 partners globally as the company expands into the travel and experiences sector.
The firm says the Airbnb flexi-payments option will be rolled out to other markets throughout the year.
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