DoorDash has announced a partnership with financial tech service Klarna to offer “buy now, pay later” loan options for customers to defer payments on orders such as food deliveries, electronics, and makeup.
Customers can take out a loan for orders over $35, which can be repaid in four interest-free installments or at a later date. However, experts warn that these loans should be used selectively, with careful consideration of the customer’s financial situation.
Chuck Bell, advocacy program director at Consumer Reports, said that “buy now, pay later” loans can be manageable for many people but can lead to problems if not managed properly. He advises customers to be aware of when payments are due and ensure they have enough money to repay the loan.
The partnership aims to provide flexible payment options for DoorDash customers as the company expands its product offerings beyond food delivery. Klarna will conduct thorough eligibility checks before approving purchases, and customers who miss a payment can face restrictions on their services.
This move comes amid growing scrutiny of “buy now, pay later” loans, which are becoming increasingly popular. According to recent data from the Consumer Financial Protection Bureau, 21.2% of consumers financed at least one purchase with these loans in 2022, up from 17.6% in 2021.
Experts warn that people who already have debt may be more likely to use these loans, which can lead to higher balances on other types of debt. However, Klarna claims its business model relies on customers repaying loans on time, with no interest charges.
Source: https://www.nytimes.com/2025/03/23/business/doordash-klarna-payments.html