You can now pay for that DoorDash order on Klarna. Hmmm.
Emily Dulla/Getty Images for DoorDash
- DoorDash has partnered with Klarna to offer new payment options to customers.
- Customers can "Pay in Full," "Pay Later," or pay in four installments.
- Some online users called the partnership a "recession indicator."
The "Buy Now, Pay Later" model is coming to DoorDash, of all places.
DoorDash has partnered with Klarna, a Swedish fintech company, to offer US-based customers more payment options. When DoorDash customers checkout, they'll be able to select Klarna as a payment option.
Under Klarna, customers can "Pay in Full," "Pay Later," or pay in four interest-free installments for orders over $35. There is no interest, and no fees if customers pay on time, according to a Klarna blog post.
A press release said customers will gain access to Klarna in the "coming months."
Although DoorDash isn't the only delivery app partnering with a fintech company, the decision shocked customers and led to some choice reactions.
Nikos Pekiaridis/Getty Images
Helpful tool or 'recession indicator'?
Some users cracked jokes about the partnership, including one who posted, "Things the US no longer has: A Department of Education. Things the US now has: Financed DoorDash burritos."
Another user referenced American YouTuber Mr. Beast, writing, "the year is 2038 and you owe $50,000 of burrito debt to doordash but you can pay it all off by living in mr. beasts minivan for 80 days."
Others found the partnership worrisome and called it a recession indicator.
Although the United States is not in a recession, some economists have pointed to signs that one could be coming. Americans are using the phrase "recession indicator" to describe things they feel are signals of an uncertain economy.
"Now this is a recession indicator," one user posted in reaction to the DoorDash deal. The post has over 147,000 likes.
The partnership even garnered a response from Dave Ramsey, the personal finance expert. Ramsey responded to a post discussing the DoorDash partnership with a gif of himself looking distraught and throwing his head into his hands.
Despite the mixed reactions, some users defended DoorDash's "Buy Now, Pay Later" options and said the naysayers encouraged classicism.
"I forgot you can get groceries on DoorDash. The Klarna after pay option could be really helpful for people in need that can't afford to feed themselves and or their kids for the week," one X user posted.
DoorDash wants to expand
DoorDash said the partnership is key to its growth. The company has expanded beyond restaurant delivery into other industries, including, in 2020, on-demand grocery delivery. DoorDash has also secured deals with brands like Ulta Beauty and Lowe's.
"As we expand DoorDash's offerings — from groceries and beauty to electronics and gifts — flexible payment options are essential to meeting our customers' needs," Anand Subbarayan, head of money products, at DoorDash, said in the press release.
A DoorDash spokesperson shared A similar statement with Business Insider.
"With over 25% of customers now shopping beyond restaurants in categories like retail, beauty, and home improvement — whether it's the gaming console or laptop for your kids, the new barbecue ahead of summer grilling season, or the running shoes you need for tomorrow's 5k — this partnership provides even more flexibility, control and options," the statement said.
Similarly, a Klarna spokesperson told BI the partnership "is especially important as DoorDash expands its offering into electronics, big-box retail and gifts."