DoorDash Partners with Klarna for Pay Later Fast Food Options

NEW YORK, March 21, 2025 — DoorDash has announced a new partnership with Klarna, a financial services company specializing in Buy Now, Pay Later (BNPL) solutions, allowing users to pay for their food via installment payments.

The collaboration, unveiled on Thursday, will enable DoorDash customers to split their payments into four interest-free installments or defer payments based on their individual paycheck schedules. This new payment option is expected to roll out soon.

BNPL services have surged in popularity over the past few years, often utilized for larger purchases like furniture. As reported, DoorDash’s new service aims to cater to younger consumers looking to manage their budgets more effectively.

Last holiday season, Klarna’s BNPL usage peaked, helping consumers spend over $18 billion online, a nearly 10% increase from the previous year, according to Adobe. This trend particularly appeals to cash-strapped consumers seeking avenues to extend their spending power.

To maintain profitability, BNPL providers like Klarna typically charge merchants fees of 1.5% to 7% per transaction. Research by RBC Capital Markets indicates that these payment services can increase average ticket sales by 30% to 50%, making the investment worthwhile for several retailers.

As American consumer debt continues to grow, hitting $18.04 trillion in the last quarter of 2023, concerns about the transparency and sustainability of BNPL services have become more prominent. The Federal Reserve Bank of New York‘s recent report highlighted an alarming increase in payment delinquency rates for credit cards and auto loans.

Klarna’s partnership with DoorDash comes as the fintech prepares for a public listing on the New York Stock Exchange. Recently, the company reported a remarkable 24% revenue increase in 2024, coinciding with the growing BNPL demand projected to exceed $160 billion within seven years.

In addition to food delivery, DoorDash offers a variety of products through third-party retailers like Best Buy and Home Depot, further expanding its market reach in conjunction with this new payment option.