DoorDash launches pay-later service with Klarna

DoorDash has launched a partnership with Klarna to offer customers the ability to pay for their orders in four interest-free installments or defer payments, catering to the growing demand for flexible payment options in light of rising food and grocery prices. This new 'buy now, pay later' feature will apply to groceries, retail items, and DashPass membership fees, allowing customers to align payments with their financial schedules. The move aligns DoorDash with competitors like Grubhub, which already offers similar payment options. While some consumers view this service as beneficial, particularly for those with limited transportation access or financial constraints, others have expressed concerns about the potential pitfalls of buy now, pay later loans, which can carry high interest rates and fees. Klarna’s COO emphasized that this expansion into everyday spending categories represents a significant milestone for their business. As more Americans turn to alternative financing solutions due to apprehension about traditional credit, this partnership aims to enhance convenience and accessibility for millions of users.