DoorDash has announced a partnership with Klarna, a financial service company, to provide installment payment options for its customers. This means users can opt to pay for their food deliveries in installments rather than all at once. Klarna will be available as a payment option during checkout, allowing customers to either pay in full, in four interest-free equal payments, or defer payments to a later date.
Anand Subbarayan, Head of Money Products at DoorDash, stated that as DoorDash expands its offerings beyond food delivery to include groceries, beauty products, electronics, and gifts, flexible payment options are crucial to meeting customer needs. The Klarna option is expected to be rolled out in the coming months.
DoorDash competitor GrubHub also offers Klarna as a payment option. However, not everyone is enthusiastic about this development. Financial commentator Dave Ramsey expressed skepticism about the idea of paying for food deliveries in installments.
Klarna representative Daniel Greaves clarified that the credit options are only available for purchases of $35 or more, meaning smaller orders cannot be paid off in installments. He also noted that 25% of DoorDash purchases are not meal deliveries, and this payment option is aimed at those buyers. Greaves added that many people already use credit cards to pay for food deliveries, and an interest-free credit option could be beneficial.
— news from CNET