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4w ago

DoorDash and Klarna Launch 'Pay Later' Options for Food and Retail Purchases

The collaboration introduces flexible payment plans for U.S. customers, stirring debate over financial implications and consumer benefits.

Sebastian Siemiatkowski, chief executive officer of Klarna Holding AB, at IFGS 2022 summit at the Guildhall in London, U.K., on Monday, April 4, 2022.
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Overview

  • DoorDash customers can now use Klarna's 'Pay in 4' interest-free installments, 'Pay Later' deferred payments, or pay in full at checkout.
  • The partnership marks Klarna's expansion into everyday spending categories, including takeout, groceries, and retail essentials.
  • Critics have mocked the concept of financing low-cost food purchases, likening it to past financial crises and questioning its practicality.
  • Klarna and DoorDash defend the initiative as a way to provide greater payment flexibility, particularly for essential purchases.
  • The move aligns with Klarna's broader U.S. growth strategy as it prepares for a potential IPO and faces increasing regulatory scrutiny of BNPL services.