DoorDash has announced a partnership with Klarna, a financial service that allows customers to schedule small payments over time. Soon, DoorDash users will be able to use Klarna to pay for their orders in four interest-free installments or defer payments to align with their paycheck schedules. Buy Now, Pay Later (BNPL) services, which also include companies like Affirm and Apple, have grown significantly in recent years. However, economists and consumer advocates express concerns about the potential debt accumulation due to the lack of transparency and regulatory oversight. During last year’s holiday season, BNPL usage reached over $18 billion in online spending, increasing nearly 10% compared to the previous year. BNPL providers charge merchants between 1.5% to 7% of the transaction price, boosting average ticket sales by 30% to 50% for some retailers. The partnership comes as Klarna plans to go public on the New York Stock Exchange. In addition to food delivery, DoorDash also offers BNPL for larger purchases through third-party merchants like Best Buy and Home Depot.
— news from CNN
