Today, news of our partnership with DoorDash sparked a conversation about using credit to buy food. This is an important discussion and we very much welcome it.
As DoorDash continues to expand its offerings beyond food — from big-ticket retail items to groceries and beauty, electronics and gifts — this partnership is an opportunity to empower customers with maximum choice and control over how they pay.
At Klarna, we make payments seamless, flexible, and responsible. Our ‘Pay in Full’ option, available on DoorDash, ensures a hassle-free transaction for those who want to pay the full amount of their order upfront. In fact, one in four of our global transactions is paid in full upfront, showing that many shoppers prefer a simple, one-time payment.
Traditional credit feeds off fees
In the same way you might use a credit card to purchase electronics at a big-ticket retailer or prestige beauty items in store and pay that bill off later, this new offering enables customers to purchase that item for delivery through DoorDash and pay however works best for them – including Klarna's interest-free Pay in Full or Pay in 4 options for purchases over $35.
People should pay with money they have whenever possible. But when credit is needed, it’s important to choose a smarter, more responsible option. For decades, Americans have relied on credit cards for grocery shopping—38% of online shoppers prefer them—but this comes at a price. More than half (56%) have paid interest, 42% have faced fees, and 34% have missed payments.
A $200 grocery order should cost exactly that—no hidden credit card fees or interest. With Klarna Pay in 4, shoppers can split payments into four manageable, interest-free installments. There’s no interest, no fees if you pay on time, and the structured installments and friendly reminders make it easier to manage your payments.
We only lend to those who can repay.
Because there is no interest, our business model relies on customers repaying us on time, unlike credit cards. So we conduct a thorough eligibility check before approving a purchase, and if a customer misses a payment, we restrict their use of our services—something credit card companies wouldn’t do, as they profit from late and revolving payments..
This prevents debt from piling up—99% of our lending is repaid, and our losses are far below credit card industry standards.
Consumers who use BNPL owe less, and repay more, than credit card users. The average Klarna customer owes us $100; for credit cards this is $7,236.
BNPL makes credit fairer, lower-risk, and more accessible.
For a healthier financial future, debit cards and Buy Now, Pay Later should replace high-cost, revolving credit. Americans should put most of their day-to-day spend on a debit card and use interest-free, installment credit for the few times they need to access credit. Including on DoorDash.