Doordash announces the partnership “Buy Now, Pay later” with Klarna

Doordash customers can now receive a loan for a Burritos $ 40 command or a $ 50 pizza delivery.

Klarna’s Financial Technology Company and Doordash Delivery company said they had worked to provide a loan “Buy Now, Pay later” loan.

The arrangement, announced on Thursday, allows customers to postpone the cost of Doordash commands that have been placed online or through its application by paying it to four prices without interest or on a later date, according to Klarna.

Chuck Bell, director of defense program at Consumer exhibitions, said “Buy Now, Pay later” loans can be manageable for many people. He informed that these loans should be selectively used, that customers should know when their payments are due and ensure that they have the money to pay the loans back.

“If you do not pay the bill in time and start getting multiple fees. It could end up being a very expensive relleno or pad Thai,” Mr Bell said.

Research has shown that “buy now, payment later” loans are used more frequently than people who are already debit.

Mr Bell said these loans could cause problems for people who have many loans and use them to finance repetitive costs, such as food.

“Remove some of these expenses in the coming months, knowing that you should buy food next month and fund it too?” He said.

Doordash is best known for offering food traditions from restaurants, but retail items such as electronics, makeup and medicines are also available.

Anand Subbarayan, head of money in Doordash, said in a statement that the flexible payment options were “essential” for the company’s customers as it expands the types of products it offers.

Following the announcement, concerns were disseminated online that people would use postponement for food delivery purchases that may be $ 10 or $ 20.

In response, Klarna said in a blog post that the payment option in four installments would only be available for purchases over $ 35. The company also said it was better for a person to pay $ 200 for grocery stores in no interest, rather than paying for them with a credit card.

“Because there is no interest, our business model is based on customers who repay us in time, as opposed to credit cards,” Klarna said. “Therefore, we are conducting a thorough eligibility inspection before approved a purchase and if a customer loses a payment, we limit the use of our services – something that credit card companies will not make, as they benefit from delayed and rotated payments.”

Klarna, based in Stockholm, is preparing for her original public offer. It already works with other food providers, including Instacart and Uber Eats.

“Buy now, Pay later” loans offered by companies such as Klarna, Paypal and Affirm have been examined as they grow in popularity.

In 2022, 21.2 % of consumers funded at least one purchase with these loans, according to a January 2025 report by the Consumer Protection Office. This is over 17.6 % in 2021.

Compared to people of the same age and credit, who did not use these loans, people with a “Buy Now, Pay later” loan were more likely to have higher balances in other types of debt, such as personal loans, student loans and credit card debt.

About 20 percent of the “purchase now, payment later” borrowers in 2022 were classified as heavy users and pulled out at least one of these loans a month, the report said. About 63 % of borrowers had multiple, at the same time loans at some point of the year, the report said.

CFPB, an observer who has targeted to close Trump’s administration, examined these types of loans.

Last year, the office ruled that lenders had to offer similar protections such as credit cards, such as allowing customers to challenge fees.

The January Bureau report said people were defeated in “Buy Now, Pay later” loans at a lower interest rate than credit card payments, probably because lenders require customers to create automatic repayments.

Between 2019 and 2022, borrowers defeated 2 % of these loans and were defeated at 10 % of the credit cards they held during the same period.