Airbnb & Afterpay

If you’re one of the millions of people that use Airbnb every year, then you know that you get charged the minute you confirm a booking. But there are times when you may need a little help. Maybe you’ve hit the limit on your credit card. Or perhaps you have other more urgent bills to pay at the moment. Sometimes the charge is higher than your budget. This is where services like Afterpay come in.

Sadly, Airbnb does not accept Afterpay or any other Buy Now Pay Later (BNPL) services. Despite Afterpay being an unsupported payment method on Airbnb, you can still use it. It just requires a few extra steps. 

Does Airbnb accept Afterpay?

No. Airbnb does not accept Afterpay or any other Buy Now Pay Later services. But you can get around this by “buying” a gift card on Afterpay and then redeeming that gift card on Airbnb. Here are the more detailed steps:

1. “Buy” a gift card on Afterpay. I put “buy” in quotes because you’re technically not giving Afterpay any money. Not yet. It’s a Buy Now Pay Later service so the money on the gift card is a loan. You can get a gift card ranging in value from $25 to $1,000. 
2. Once you “buy” the e-gift card, Afterpay will send it to your email. Afterpay’s gift card partner is Prezzee
3. Go to your Airbnb profile.
4. Tap on “Payments and payouts” under “Account settings.” 
5. Under “Payments and payouts,” select “Credits and coupons.”
6. Under “Credits and coupons” select “Add gift card.”
7. Enter the gift card PIN to redeem it. Any Airbnb charges will henceforth be deducted from the gift card until the balance is exhausted. The gift card acts like a prepaid credit card in this scenario.
8. Repay Afterpay. They take their money in four installments, two weeks apart.

What payments does Airbnb accept?

Airbnb accepts all major prepaid cards, credit cards, and debit cards (Visa, Mastercard, American Express, and JCB). It also accepts gift cards, Paypal, Google Pay, and Apple Pay. 

These payment methods are the most widespread and are accepted in the vast majority of countries. 

Airbnb also includes additional payment methods for customers in specific countries:

• United States – Discover
• China – Alipay and Wechat Pay
• Germany – Sofort Überweisung
• The Netherlands – iDEAL
• Italy – Postepay
• India – PayU
• Brazil – Aura, Elo, and Hipercard

Does Airbnb require full payment upfront?

While Airbnb typically charges you the full cost of a booking upfront you can select a plan that allows you to pay a fraction of the cost upon making a reservation but the balance still has to be paid before you check in. This is less convenient than BNPL services like Afterpay but it does spare you the hassle of paying for the full cost of your stay one or two months in advance. 

Do keep in mind that this payment plan is only applicable if you make a booking early enough and you still have to pay off any balance before you set foot in your Airbnb rental.

How to use Afterpay on Airbnb

You cannot use Afterpay directly on Airbnb. The best you can do is obtain a gift card on Afterpay and then redeem it on Airbnb. I have outlined the detailed steps to doing exactly that above.

How much does Afterpay cost?

Afterpay uses a similar model to credit cards. It is technically free with a caveat. Afterpay doesn’t cost you anything in interest payments. If they give you $100, you pay back $100. But the interest-free state applies only in cases where you make your payments on time. 

If you’re late with your repayment, there is a 10-dollar late fee for every missed payment. Afterpay tacks on another $7 for every seven days that a pending loan remains unpaid. These late fees are capped at 25% of the original purchase. 

That means that if Afterpay gives you $100 to complete a purchase and you’re late with your payments, the late fees they charge you will never exceed $25. With a bill of $100, you’ll hit that 25-dollar limit if you miss your payments for just one month. It’s not cheap by any standard.

Late fees form a significant portion of Afterpay’s revenue. The company makes 75.6% of its money from merchant fees while the remaining 24.4% comes from late fees. So, don’t be late. Repay Afterpay on time and it won’t cost you a cent. Be late with payments, however, and you will make the company a lot of money.

If you use Afterpay, you will be charged 25% immediately. So, for a $100 purchase, you pay $25 right away. The remaining $75 is paid out in three installments of $25, two weeks apart. 

Afterpay also doesn’t check your credit score. They start you off with a low limit (usually $600) and then raise it over time in accordance with your spending and repayment habits.