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DoorDash Partners with Klarna to Introduce Flexible Payment Options

The collaboration marks DoorDash's first U.S. partnership with a BNPL service as Klarna expands into everyday spending ahead of its IPO.

A food delivery rider for DoorDash waits for the traffic light to change to head northbound on Chester Street at County Line Road on Monday, March 30, 2020, in Lone Tree, Colorado.
Photo: rblfmr (Shutterstock)

Overview

  • DoorDash customers will soon be able to pay for orders in full, in four interest-free installments, or defer payments to align with payday schedules.
  • This partnership represents Klarna's strategy to expand its buy now, pay later services into routine spending categories like food delivery and groceries.
  • Klarna is preparing for an IPO on the New York Stock Exchange, supported by 24% revenue growth last year and a swing to profitability.
  • The BNPL industry, including Klarna, has faced regulatory scrutiny due to concerns about consumer debt and unregulated lending practices.
  • Reactions to the partnership are mixed, with some praising the added flexibility and others warning about the potential for increased financial hardship.