DOORDASH has confirmed a significant shift in service this month thanks to a new partnership.
The move comes at no extra cost to consumers and will allow them more purchasing options on food and drink orders.
On Thursday, the company announced that it would be collaborating with buy-now-pay-later (BNPL) service Klarna, per a news release.
Users will be able to finance grocery and retail purchases and even the DashPass annual subscription.
DoorDash said the added feature “empowers customers with maximum choice and control over how they pay.”
Klarna will appear at the checkout area on the DoorDash app and website, where they will be prompted with several options.
They can choose to pay in full, pay later, or have four interest-free installments.
DoorDash emphasized the pay later selection offered to customers as a way to make space for a “date that aligns with their paycheck schedules.”
Anand Subbarayan, head of money products at DoorDash, also explained in the release that “flexible payment options are essential to meeting our customers’ needs.”
“We’re excited to partner with Klarna to enhance the convenience we offer,” Subbarayan noted.
CONVENIENCE FIRST
David Sykes, chief commercial officer with Klarna, said the company aligned with the desire to offer Americans more ease and satisfaction.
“Our partnership with DoorDash marks an important milestone in Klarna’s expansion into everyday spending categories,” Sykes said.
“By offering smarter, more flexible payment solutions for groceries, takeout, and retail essentials, we’re making convenience even more accessible for millions of Americans.”
A confirmed date for Klarna’s integration was not provided.
DoorDash noted that it would take place “in the coming months.”
During an earnings call earlier this month, Klarna confirmed that its revenue from 2024 had gone up by 24% to about $2.8 billion.
By offering smarter, more flexible payment solutions for groceries, takeout, and retail essentials, we’re making convenience even more accessible for millions of Americans.
David SykesChief Commercial Officer at KlarnaKEEPING A CLOSE EYE
BNPL Services have been watched closely by the Consumer Financial Protection Bureau (CFPB) since 2022, per CNBC.
The bureau initiated oversight for companies like Klarna, Afterpay, and Affirm similar to processes for credit card companies.
It had particular grievances with the way the BPNL services were keeping consumer data, and the CFPB claimed it raised privacy concerns.
“Buy Now, Pay Later firms are harvesting and leveraging data in ways we don’t see with other companies,” former CFPB director Rohit Chopra said in a statement at the time.
“Through their proprietary interfaces, they can see which products we buy through product placement.”
The CFPB also saw a rise in approval rates for loans with BNPL.
Some shoppers have said they’re seeing paychecks “continually eaten up” after racking up debt worth $6,000 through some services.
PayPal also has a BPNL service but came under fire earlier this year for “updated” pricing.
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