Introduction to the Partnership

DoorDash’s new partnership has people on social media doing a double take. On March 20, the food delivery platform announced a collaboration with Klarna, an AI-powered online payments company, to offer a range of flexible payment options to its customers. DoorDash says that customers will soon be able to use Klarna’s range of payment options when purchasing groceries, restaurant food, and retail items.

How the Partnership Works

When customers check out, they’ll be able to choose Klarna as a payment option, with three options that include: paying in full using Klarna; “Pay in 4,” where customers will pay for their purchase in four equal interest-free installments; and “Pay Later,” which will let users defer payments to another time.

Reaction on Social Media

News of the partnership hit social media like a poké bowl forcefully chucked at a wall. While a lot of the comments joke about DoorDash’s partnership with Trixie Mattel’s favorite Swedish company, others raise concerns about what finance plans for food means for customers — and society at large. In response, Klarna posted more context in a blog post titled “Convenience Shouldn’t Cost,” clarifying what customers can and can’t do with its service.

Clarification from Klarna

“This partnership gives DoorDash customers an easier way to pay upfront, with Klarna Pay in full, and spread the cost of larger purchases over $35 with Klarna’s interest-free, installment-based credit options — especially important as DoorDash expands its offering into electronics, big-box retail, and gifts,” a Klarna spokesperson tells TODAY.com. To reiterate: That $35 minimum means you cannot use this tool to finance a single burrito to your home.

Implications of the Partnership

DoorDash also points out that you can purchase things other than food using its service. “With over 25% of customers now shopping beyond restaurants in categories like retail and grocery—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,” a DoorDash spokesperson tells TODAY.com. But this partnership has made a lot of finance-focused folks wonder about its implications out loud.

Concerns Raised by the Partnership

On March 20, influencer and entrepreneur Humphrey Yang devoted a video to the subject, captioning his clip, “Are we cooked chat?” “What is going on with the world? You’re telling me you’re gonna put your pizza on buy now, pay later?” Yang says. “I’m not sure what to think about this. Is our economy doing that bad where we need interest-free installments on food? I mean, that actually presents a very slippery slope. Like, what’s next? Laundry machines? Vending machines?”

Conclusion

The partnership between DoorDash and Klarna has sparked a lot of debate on social media, with some people joking about the idea of financing food purchases, while others raise concerns about the implications of this type of financing. While the partnership may provide more flexibility and control for customers, it also raises questions about the state of the economy and the potential risks of encouraging consumers to take on more debt.

FAQs

• Q: What is the partnership between DoorDash and Klarna?
  A: The partnership allows customers to use Klarna’s payment options, including paying in full, paying in four interest-free installments, or deferring payments, when purchasing groceries, restaurant food, and retail items on DoorDash.
• Q: What is the minimum purchase amount required to use Klarna’s payment options?
  A: The minimum purchase amount is $35.
• Q: Can I use Klarna to finance a single burrito?
  A: No, the $35 minimum purchase amount means you cannot use Klarna to finance a single burrito.
• Q: What are the implications of this partnership?
  A: The partnership raises questions about the state of the economy and the potential risks of encouraging consumers to take on more debt.