DoorDash teams up with Klarna for 'Buy Now, Pay Later' flexibility

Ordering takeout or groceries through DoorDash just got even more convenient, thanks to a new “Buy Now, Pay Later” option. But while the service may offer flexibility for shoppers, financial experts warn it could also encourage overspending.

Here’s what you need to know about the DoorDash-Klarna partnership—and the financial pitfalls experts want consumers to avoid.

DoorDash introduces Klarna for delayed payments

DoorDash users now have a new way to pay at checkout: Klarna. The digital finance platform lets customers:

1. Pay in full
2. Split the cost into four interest-free payments (for purchases of $35 or more)
3. Defer payment entirely

The new feature was rolled out as part of a partnership between DoorDash and Klarna, which was announced in March.

A tempting tool—but one to use with caution

Financial advisor Triston Hasty-Grant with Waterstone Private Wealth Management says this type of flexible financing isn’t inherently bad—but it should be used responsibly.

“These financial tools are not inherently good or bad. They are just simply tools,” Hasty-Grant said. “If you’re going to use this new tool on DoorDash and buy now, pay later, then use it appropriately and consciously. Make sure that you are staying on top of it.”

What happens if you miss a Klarna payment?

According to Klarna, customers who miss a payment are restricted from using the service in the future. The company says this rule encourages responsible usage.

Klarna also reports that:

1. 99 percent of its loans are repaid
2. The average user owes about $100

Bottom line

Hasty-Grant says Buy Now, Pay Later options can be a helpful tool—if used with discipline. Consumers should treat it like any other form of credit: understand the terms, track spending, and plan ahead. This includes using the buy now, pay later tool and for financial planning in general.

“Kicking the can down the road is rarely a good solution and that can translate to a lot of stuff," Hasty-Grant said.

When it comes to financial management in general, Hasty-Grant says deferring payments in general can be a lot to manage and to remember.

“If people are in a situation where they don’t have a resource, then that’s unfortunate, and maybe it works for a one-time kind of fixed situation. But it’s certainly not a good financial tool to sustainably use and try to keep up with over a long period of time because it’s a lot to remember," he said.