Image Courtesy of DoorDash
March 20, 2025
DoorDash Partners With Klarna To Offer Buy Now, Pay Later Options for Customers To Finance Delivery Orders
On a March 20 post shared to Klarna’s official website, the buy now, pay later company indicated that it would be officially partnering up with food delivery service DoorDash. The partnership will see flexible payment options extended to DoorDash customers, largely concerning food delivery orders but also pertinent to broader category purchases on the DoorDash Marketplace, as well as the cost of the DashPass Annual Plan.
In fact, representatives from both companies were quick to gesture toward the broad scope of offerings that this partnership would enable customers to gain access to.
“Our partnership with DoorDash marks an important milestone in Klarna’s expansion into everyday spending categories,” said David Sykes, chief commercial officer for Klarna.
“By offering smarter, more flexible payment solutions for groceries, takeout, and retail essentials, we’re making convenience even more accessible for millions of Americans,” he added.
Anand Subbarayan — head of money products at DoorDash — echoed the above sentiment in his remarks.
“As we expand DoorDash’s offerings — from groceries and beauty to electronics and gifts — flexible payment options are essential to meeting our customers’ needs,” Subbarayan said.
“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,” he concluded.
Klarna To Offer 3 Payment Options to DoorDash Customers
Klarna outlined three different payment options available to DoorDash customers as part of the partnership:
- Pay in full: Although DoorDash already links to various payment methods, Klarna integration will allow “seamless” payment through its own service.
- Pay in four: This option allows customers to pay for their orders in four equal interest-free installments.
- Pay later: Opting for this payment process means that customers can defer their payment to a more convenient time, such as aligning with their paycheck schedule, for example.
Klarna has announced that DoorDash is now one of their official partners.
Customers can choose to break their payments into four equal, interest-free installments or delay them until their next payday. pic.twitter.com/wb81IP8xLK
— Complex (@Complex) March 20, 2025
Reaction from fans on social media was decidedly mixed, with many users offering humorous takes on the news and others simply expressing cynicism or disgust at the notion of introducing BNPL options to relatively low-cost delivery orders.
That may not halt Klarna’s progress, however. As CNBC noted, this partnership with DoorDash follows recent headlines that detailed the BNPL service provider as having scored a major win — as of March 17, news broke that Klarna would be the exclusive provider of buy now, pay later loans for retail giant Walmart, taking the position away from rival lender Affirm.
Discussion Questions
Do you foresee Klarna’s BNPL integration with DoorDash as being a move in the right direction for both companies? What potential pitfalls exist?
Is the largely negative social media reaction of any importance, or will BNPL continue its growth into this segment as people speak with their wallets?
Poll
Loading …BrainTrust
Neil Saunders
Managing Director, GlobalData
Cathy Hotka
Principal, Cathy Hotka & Associates
Karen Wong
Co-Founder & CEO, TakuLabs Ltd.
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This is good for Klarna. It is also good for DoorDash to have a BNPL option as this is a rapidly growing part of the market. It may seem odd to pay for meals via BNPL, but people already use credit cards to do this and, for many younger consumers, Klarna is just an alternative form of credit.
You changed my mind a bit on this, Neil; this does feel like a new form of credit card.
I don’t think (in my…well, more than 39 years) I’ve seen an idea as ill-considered; and that’s saying something…n-o-n-e of it good.
Younger people love both DoorDash and Klarna, so the symbiosis is natural. I do worry, though, about deferred payments becoming the norm.
By increasing customer engagement and convenience, the integration could boost revenue for Klarna and DoorDash.
In spite of this, there are some risks involved, such as customers overextending their finances, which may result in higher default rates and negatively affect Klarna’s financial stability.
Additionally, DoorDash may face challenges if the BNPL option attracts customers who are less financially stable, which could negatively impact customer satisfaction and brand reputation.
While negative social media reactions may highlight concerns about financial responsibility, they may not significantly affect the adoption of BNPL services.
BNPL options provide convenience and flexibility to consumers, which is a top priority in their purchasing decisions.
Although there has been criticism regarding these services, they are likely to continue to grow in popularity as long as they meet consumer needs and provide a seamless shopping experience.
At first glance, I couldn’t help thinking if somebody needs to finance a meal, maybe they should cook themselves. But as others have mentioned, this might be a reflection of my age. After all, what are credit cards but monthly deferred payments on purchases. And younger generations are more comfortable with BNPL than credit cards. So while this wouldn’t be likely to appeal to my generation or older, there is a demographic it might. And that would be incremental market growth for the brands
I think it’s very odd to have the whole conversation around convenience and ‘affordability’ with no mention about the math, costs, delinquency and default rates. Sure, at the macro level, it’s an emerging form of credit. And yes, cash has a diminishing role in how we pay for things these days. But there is a ‘why’ at the core of the emergence of BNPL, and it’s not a cheery tale. Well managed credit is indeed incredibly convenient. It’s affordability is debatable, depending on the circumstances. Eating on an installment plan might be stretching the rubber band a little too far.
Interesting payment solution for those underbanked or without credit cards. Pay on time and it works as a convenient payment solution. However, Klarna doesn’t report payment history so it will not improve a user’s credit score. They do refer failure to pay to collection agencies which will report negatively. Failure to pay on time can impact your credit score. Use wisely.