On Thursday, DoorDash, the popular food delivery service, announced an exciting new partnership with Klarna, a leading financial services company. This collaboration aims to enhance the customer experience by offering flexible payment plans for food deliveries. With this new feature, DoorDash customers will have the option to pay for their deliveries through an installment plan, making food more accessible to a broader audience.
When customers check out on the DoorDash platform, they will see Klarna as a payment option, alongside traditional payment methods. Shoppers will have the flexibility to choose from three payment options: they can either pay in full at the time of purchase, split their payment into four interest-free installments, or defer their payments to a later date. This move is part of DoorDash's ongoing efforts to expand its offerings beyond just food delivery, which now includes groceries, beauty products, electronics, and gifts. Anand Subbarayan, the Head of Money Products at DoorDash, emphasized the importance of these flexible payment options in meeting customer needs.
The integration of Klarna as a payment option is expected to roll out in the coming months. Customers can look forward to this new feature that aims to enhance their shopping experience on DoorDash. Notably, DoorDash's main competitor, GrubHub, already utilizes Klarna for similar payment solutions, indicating a growing trend in the food delivery industry toward offering flexible payment methods.
While the partnership has garnered attention, not everyone is enthusiastic about the idea of using an installment plan for food deliveries. Financial commentator and radio host Dave Ramsey expressed his concerns on social media platform X, sharing a video clip that depicted his dismay at the concept. Many online users echoed Ramsey's sentiments, suggesting that this payment option could encourage individuals with limited financial means to order food they cannot afford upfront.
In response to concerns about the implications of these payment options, Daniel Greaves, a representative for Klarna, clarified to CNET that the installment payment plans are only available for purchases of $35 or more. This means that customers won't be able to use the payment plan for small purchases, such as a $1.79 Taco Bell taco, and pay it off in small increments. Greaves also noted that approximately 25% of DoorDash purchases fall outside of meal deliveries, indicating that this payment option is geared towards various other types of purchases on the platform.
Greaves added that many consumers currently use credit cards to pay for food deliveries, and he believes that an interest-free credit option can provide significant value for those customers, enhancing their overall experience when ordering through DoorDash.
