DoorDash and Klarna are combining forces to offer DoorDash customers the option to buy now, pay later.
In a TikTok with over 340.1K views, Mai (@thewekly) sheds light on the recent announcement of the partnership between Klarna and DoorDash and warns people to be careful.
This past week both Klarna and DoorDash announced a new partnership where DoorDash customers will now be able to use “buy now, pay later” loans for orders over $35. This new partnership gives DoorDash customers more ways to buy groceries, retail, and fast food meals.
Klarna and DoorDash are teaming up
In the viral TikTok, Mai starts out by saying “Do not use Klarna for DoorDash.” She then jokingly claims that no one will feel sorry for me when you don’t get your dream apartment because of a $20 Popeyes DoorDash order.
Mai told Daily Dot, “We should not play into these big companies acting like they care about our well being by giving us the option to finance food. We need to save our money and start cooking at home during times like these, instead of creating debt from overpriced food orders. We have to make better choices financially and health wise.”
Now this does bring up valid concern considering people can now use short term payment plans for DoorDash orders. According to a 2024 Federal Reserve study, 47% of Americans carry credit card debt. If Americans are already struggling to manage credit card debt, this could be bad news.
Why buy now, pay later might not be such a good idea?
“Buy now, pay later” financing options are on the rise.
Companies like Klarna, Affirm, and Afterpay became popular recently by offering short-term loans to allow customers to make four interest-free payments every two weeks. This “Pay in 4” option made big purchases like travel and concerts more obtainable.
In addition to Pay in 4 billing, you can also “buy now, pay later.” This allows customers to defer payments to a more “convenient” time that aligns with their paycheck schedule according to DoorDash. However, what started out as an innocent interest free payment plan, can quickly turn into a downfall of debt if not paid off on time.
Using buy now, pay later is essentially signing up for a short-term loan. Using a service like Klarna, it’s basically using a credit card to make a purchase. Just like credit cards, Klarna can collect interest on missed payments.
A Klarna spokesperson told the Daily Dot, “This partnership gives DoorDash customers an easier way to pay upfront, with Klarna Pay in full, and spread the cost of larger purchases with Klarna’s interest-free, installment-based credit options—especially important as DoorDash expands its offering into electronics, big-box retail and gifts.”
A DoorDash spokesperson told Daily Dot, “DoorDash customers already have plenty of ways to pay—PayPal, Venmo, CashApp Pay, SNAP/EBT, gift cards, and debit or credit cards. With over 25% of customers now shopping beyond restaurants in categories like retail, beauty, and home improvement—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.”
Can you miss Klarna DoorDash payments?
DoorDash will now offer three ways to make payments at checkout. These payment options include pay in full, Pay in 4, or buy now, pay later offered by Klarna. Klarna heavily messages “no fees, if you pay on time.” Now what happens if you miss your Klarna payments?
First, interest is going to be applied. According to Klarna’s website, a 28.99% APR is applied to any missed payments. For example, a $1,000 purchase would cost $181.04 per month over 6 months at 28.99% APR. The average credit card interest rate is 22.02% according to NerdWallet.
Now missing credit payment not only creates more interest and payments, it also affects your credit score. Every-time you miss a payment, a few points will be deducted from your credit score. NerdWallet reports paying 30 days or more past due could drop your score as much as 100 points.
Considering the potential long-term damage of missing payments for chicken tenders, it may be wise to skip on using Klarna for DoorDash.
@thewekly Yall doing too much buy now pay later on a seafood boil is crazy we got food at home! #fyp #klarna #doordash #popeyes #finance #money #storytime #smart #credit #stockmarket #dobetter #creatorsearchinsights @ABC News Live ♬ Anxiety – Doechii
What did the viewers think about this?
“I use Klarna for things like airline tickets, concerts, and big purchases. DoorDash? Oh no,” one shared.
“Why is your four-piece chicken tender on a payment plan?” one commented
“If you don’t have the $20 to spend on DoorDash, DON’T SPEND IT ON DOORDASH. Why are you paying three dollars a month on something you ate five weeks ago,” one added.
People are really gonna walk around with seventeen unpaid Wingstop loans,” one joked.
“Popeyes > dream apartment,” one trolled.
“DoorDash driver here. Don’t finance a goddamn pizza or McDonald’s.”
This TikTok has more than 340.1K views with over 47.2K likes.
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