DoorDash Partners with Klarna to Offer ‘Buy Now, Pay Later’ Option

DoorDash has announced a new partnership with financial technology company Klarna, allowing customers to defer payments on food deliveries and retail purchases, the New York Times reports.

The collaboration introduces a “buy now, pay later” (BNPL) option, enabling users to split their payments into four interest-free installments or delay payment to a later date.

The BNPL feature applies to purchases made through the DoorDash app or website and covers a variety of products beyond restaurant orders, including electronics, makeup, and medicine. Klarna has clarified that the installment option is available only for purchases over $35.

While BNPL services have become increasingly popular, financial experts caution that they should be used responsibly. Chuck Bell, advocacy program director at Consumer Reports, notes that while these loans can be manageable for many, missed payments could lead to unexpected fees.

“If you don’t pay the bill on time and you start getting multiple late fees, it could end up being a very expensive chile relleno or pad Thai,” Bell warned.

Research has shown that BNPL options are frequently used by individuals already managing multiple forms of debt. A key concern is that customers might use these loans to cover recurring expenses, such as food, which could create financial strain in future months.

Klarna, however, argues that its model is a better alternative to credit cards, as it does not charge interest and restricts access for users who miss payments. The company emphasizes that it conducts eligibility checks before approving purchases to prevent customers from accumulating excessive debt.

BNPL services, offered by companies such as Klarna, PayPal, and Affirm, have gained traction in recent years. According to a January 2025 report from the Consumer Financial Protection Bureau (CFPB), 21.2% of consumers used BNPL financing for at least one purchase in 2022, up from 17.6% in 2021.

The report also highlighted that BNPL users tend to have higher balances on other forms of debt, such as credit cards, student loans, and personal loans. Around 20% of borrowers were classified as heavy users, taking out at least one BNPL loan per month. Additionally, 63% of borrowers had multiple BNPL loans active at some point during the year.

Despite growing concerns, default rates for BNPL loans remain lower than those for credit cards. Between 2019 and 2022, 2% of BNPL borrowers defaulted on their payments, compared to 10% of credit card users over the same period.

The CFPB has been monitoring the rise of BNPL services and recently ruled that these lenders must offer consumer protections similar to those provided by credit card companies, including the ability to dispute charges.

Klarna, which is based in Stockholm, has been expanding its presence in the US and is preparing for an initial public offering. The company already provides BNPL services for other major food delivery platforms, including Instacart and Uber Eats.

For DoorDash, the introduction of BNPL aligns with its broader strategy of diversifying its offerings beyond restaurant deliveries. Anand Subbarayan, head of money products at DoorDash, stated that flexible payment options are “essential” as the company continues to expand its range of products.