DoorDash Will Add Klarna as a Payment Option | Eater
"The delivery platform has partnered with a fintech that lets customers split purchases into four payments with no interest; these installments are usually billed every two weeks, so "if you spend $100 on pizza or sushi, you’ll make four payments of $25 each over the next two months." The fintech makes money by charging merchant fees to companies like this platform and big-box retailers, earning a percentage of each order, and, according to NBC News, the partnership will allow customers to defer their payments to "dates that align conveniently with payday schedules." Critics argue this is risky because the "buy now, pay later" industry is less regulated than credit cards and can be an easy way for people to go into debt: a 2025 analysis from the Consumer Financial Protection Bureau found that most customers who regularly use “buy now, pay later” platforms like Klarna and Afterpay take out multiple loans at once and end up deeper in personal debt than people who don’t use those platforms. That concern is sharpened by larger economic context: since 2019 the cost of food has risen about 31 percent, and the USDA found that 13.5 percent of American households experienced food insecurity in 2023, leaving financially vulnerable families especially exposed to the argument that BNPL plans are better than high-interest credit cards. Unlike credit cards, these installment plans generally don’t help build credit scores, and many commentators call the idea of financing food purchases "a uniquely terrifying proposition." The author adds a personal perspective, writing, "I’m no financial expert — please do not look at the balance on my credit cards," and acknowledging that "I deeply understand the psychology of wanting a little treat when you’re broke," noting that "If it’s Tuesday night, I’ve got 38 bucks to my name, and I’m craving Thai food, it’s easy to see the appeal of putting off that payment until I get paid on Friday." - Amy McCarthy
