Airbnb rolling out new 'Reserve Now, Pay Later' feature for US travelers

Airbnb is launching a new payment option that allows travelers to book accommodations without paying the full amount upfront.

"Reserve Now, Pay Later" is now available to customers in the U.S. booking eligible domestic stays on the Airbnb website or app.

The company said you can use this payment option for listings with flexible or moderate cancellation policies. The full rental amount won't be due until shortly before the end of the listing's free cancellation period.

No credit check is required to use the feature.

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Host cancellation policies remain unchanged, and Airbnb said, because the payment from guests is always due before the free cancellation period ends, hosts have time to secure another booking even if a guest cancels.

Airbnb said it hopes this new payment option will generate more reservations for U.S.-based hosts by making bookings more accessible to travelers.

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The company recently partnered with Focaldata to survey U.S. travelers and found that 60% of the respondents said having flexible payment options is important when it comes to booking a vacation.

One in 10 survey participants said they always use a flexible payment option when it is available.

The new feature will be available alongside Airbnb's other payment options like "Pay Part Now, Part Later" and "Pay Over Time with Klarna."

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