Summary
DoorDash is partnering with Buy Now, Pay Later service Klarna to let customers divide fast food purchases into interest-free installments or defer payments to align with paycheck schedules.
This expands BNPL services beyond their typical use for large purchases like furniture.
The partnership comes amid record BNPL usage ($18 billion during last holiday season) and as Americans face increasing debt levels, with serious delinquencies on auto loans and credit cards at 14-year highs.
Klarna plans to list on the NYSE soon, capitalizing on the BNPL market projected to exceed $160 billion in seven years.
This isn’t exactly a new trend. Instacart has been offering this for groceries, which is just as bad.