Klarna, a buy now, pay later service, announced on Thursday it is partnering with delivery service DoorDash to offer flexible payments for those whose paydays may not line up with their cheat days.
In just a few months, DoorDash customers will be able to take advantage of Klarna’s accommodating payment options while purchasing groceries, retail, and DashPass Annual Plan.
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When customers check-out, they will see Klarna as an additional payment option. They can then choose to pay in full, pay in four equal interest-free installments, or pay later.
The move comes after Klarna last week announced its revenue last year increased 24% to $2.8 billion, and nearly one year after the Consumer Financial Protection Bureau (CFPB) cracked down on buy now, pay later (BNPL) lenders — announcing it will impose similar regulations on BNPL lenders that apply to credit card companies.
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“We’re excited to partner with Klarna to enhance the convenience we offer, including flexible payment options for our DashPass Annual Plan, the most affordable way to order on DoorDash with added streaming and ride benefits at no extra cost,” Anand Subbarayan, head of money products at DoorDash, wrote in a statement.
Subbarayan added “flexible payment options are essential to meeting our customers’ needs” as the company expands its offerings from food and groceries to beauty, electronics and gifts.
The CFPB opened an investigation into top BNPL lenders like PayPal and Klarna in 2021 due to concerns about consumers accumulating debt and mismanaging payments.
“Our partnership with DoorDash marks an important milestone in Klarna’s expansion into everyday spending categories,” said David Sykes, Klarna chief commercial officer. “By offering smarter, more flexible payment solutions for groceries, takeout, and retail essentials, we’re making convenience even more accessible for millions of Americans.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KLAR | NO DATA AVAILABLE | – | – | – |
The Klarna options will be available on DoorDash.com or through the DoorDash app, according to Klarna.
Fox Business’ Breck Dumas contributed to this report.
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