DoorDash Launches Flexible Payment Options With Klarna
Buy now, pay later (BNPL) options from Klarna will soon be available for DoorDash orders.
The payments company announced its new integration partnership with the delivery platform in a Thursday (March 20) press release, saying it offers DoorDash customers in the U.S. flexibility and convenience when paying for delivery of restaurant food, groceries and retail goods.
According to the release, in the coming months (it didn’t specify when), DoorDash.com and DoorDash app users will have access to three payment options: “Pay in Full,” “Pay in 4” and “Pay Later.”
As it implies, Pay in Full means the customer pays the total amount of their purchases immediately through Klarna’s payment system. Pay in 4 divides the total cost into four equal and interest-free installments. The Pay Later option enables customers to defer their payments as their personal finances will allow.
“Our partnership with DoorDash marks an important milestone in Klarna’s expansion into everyday spending categories. By offering smarter, more flexible payment solutions for groceries, takeout, and retail essentials, we’re making convenience even more accessible for millions of Americans,” Klarna Chief Commercial Officer David Sykes said in the release.
The new BNPL integration can be used to pay for the expanding array of products available through DoorDash, including electronics, home improvement supplies and beauty products, according to the release.
Consumers can also use Klarna’s payment solutions for their DashPass Annual Plan, which offers benefits like free delivery and exclusive deals.
DashPass includes “added streaming and ride benefits at no extra cost,” Anand Subbarayan, head of money products at DoorDash, said in the release.
The partnership announcement comes on the heels of news that Klarna is moving toward an initial public offering (IPO) in the U.S.
It remains to be seen how the new payment options will impact the workflow of the people who deliver for DoorDash. “Dashers” in New York will be receiving a $16.7 million settlement amid accusations that the company deceptively used customer tips to subsidize wages between 2017 and 2019, rather than letting drivers keep their tips in addition to their guaranteed pay.
In a statement, DoorDash said it no longer uses the pay model from that time period.
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