DoorDash to offer buy now, pay later options on deliveries: What to know

DoorDash announced that it's adding buy-now, pay-later payment options from Klarna to its delivery platform. 

This means customers seeking the convenience of things like restaurant delivery, as well as groceries and retail deliveries, will be able to pay later for their purchases. 

Here’s what to know:

DoorDash adds buy-now, pay-later options

What we know:

DoorDash has expanded its offerings beyond restaurant and grocery delivery to beauty, electronics and gifts. On Thursday, the company said in an announcement that when customers get to the check-out prompt, they’ll see Klarna as an additional payment method. Options will include:

• "Pay in Full" means customers pay immediately via Klarna’s payments experience.
• "Pay in 4" lets customers pay in four equal interest-free installments.
• "Pay Later" allows customers to defer payments to "a more convenient time," such as when they get paid.

Customers can also pay for their DashPass Annual Plan membership using Klarna. 

What we don't know:

DoorDash's announcement says customers will be able to use Klarna options for payment "in the coming months," but didn't specify an exact date. 

The backstory:

The announcement comes nearly a year after the Consumer Financial Protection Bureau (CFPB) cracked down on buy-now, pay-later (BNPL) lenders — announcing it will impose similar regulations on BNPL lenders that it mandates for credit card companies, bolstering regulations on the payment method that is growing in popularity among Americans.

The CFPB previously opened an investigation into top BNPL lenders like PayPal and Klarna in 2021 due to concerns about consumers accumulating debt and mismanaging payments.

What they're saying:

"We’re excited to partner with Klarna to enhance the convenience we offer, including flexible payment options for our DashPass Annual Plan, the most affordable way to order on DoorDash with added streaming and ride benefits at no extra cost," Anand Subbarayan, head of money products at DoorDash, wrote in a statement. 

Dig deeper:

GrubHub, a rival of DoorDash, already offers Klarna as a payment option. However, DoorDash has a significant command of the delivery market in the U.S., with nearly 63% nationally, according to Earnest Analytics. That’s followed by UberEats with 25% and GrubHub at 6.2%. 

Last week, Klarna announced its revenue last year increased 24% to $2.8 billion, and the company is headed for an initial public offering, according to reports.