DoorDash is facing some backlash after partnering with a buy now, pay later payment program that some say could increase debt for millions of Americans.
The food delivery platform announced its partnership with AI-powered payment network Klarna Thursday, which will allow DoorDash users to order food and pay for it in multiple installments.
Newsweek spoke to experts about the matter from the perspective of DoorDash and its customers.
Why It Matters
Americans hold more than $18 trillion in credit card debt, according to the Federal Reserve.
While pay-later platforms like Klarna offer added flexibility for consumers making purchases who may not have the bandwidth to pay with their debit card at the moment, some finance experts caution against using these types of platforms due to the risks to your bank balance later on.
In this photo illustration, the DoorDash logo is displayed on a smartphone screen in front of a stock chart illustrating DoorDash’s financial performance, food delivery service trends, gig economy developments, and global market activity on February 9, 2025, in Chongqing, China.
Cheng Xin/Getty Images
What To Know
DoorDash announced its partnership with Klarna on Thursday. Within hours, social media users were criticizing the decision due to larger financial concerns.
“If you need a payment plan to use DoorDash you might wanna get off your lazy ass and just go pick up your goddamn food yourself,” wrote Gringo Starr on X, who goes by @JakeDuarte43.
Another social media user pointed out potential personal finance issues in making installment plans for a food delivery order.
Whitney Medworth, who goes by @its_whitney, wrote: “not to be on my dave ramsey but no one should ever pay installments for doordash.”
X user @HistoryBoomer reacted to the news: “If you’re financing your DoorDash deliveries, you aren’t living paycheck to paycheck, you’re just a moron.”
Newsweek reached out to DoorDash for comment via email.
DoorDash and Klarna have responded to the pushback by outlining how the Klarna buy now, pay later payment option can actually prevent debt, rather than add to it.
“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,” Klarna wrote in a blog post on its site. “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.”
Klarna offers both an interest-free Pay in Full or Pay in 4 option on DoorDash, and that can apply to takeout, groceries and more.
The company also says its buy now, pay later business model mandates that they do an eligibility check on consumers before approving a purchase. If a customer misses a payment, they then restrict their use of services, which credit card companies don’t do, according to the Klarna website.
“This prevents debt from piling up—99% of our lending is repaid, and our losses are far below credit card industry standards,” Klarna said in its new blog post.
What People Are Saying
A spokesperson for DoorDash told Newsweek: “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 percent 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.”
Klarna wrote in a blog post on its website: “People should pay with money they have whenever possible. But when credit is needed, it’s important to choose a smarter, more responsible option.”
“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.”
Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek: “From a business standpoint, I get it. It opens the door for more transactions, gives consumers more payment options, and likely boosts sales for DoorDash.”
“But on a personal level? This shouldn’t be allowed. Nothing good comes from it—just more debt. We’re walking into a modern-day version of feudalism, where people just want to eat but are kept in line by digital debt overlords.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “It’s easy to see why partnerships like the one between DoorDash and Klarna jump out at customers. While relationships between major retailers and financial services are nothing new, consumers are used to seeing these in the form of store credit cards for multiple purchases for frequent customers or ‘easy payments’ for large purchases.”
“Past reports have estimated the average DoorDash order to be somewhere between 30-to-40 dollars, though. When you see financing being pushed for smaller purchases, it raises a financial red flag that customers who are already tapped out are being encouraged to use debt products for buying items they shouldn’t have to seek financing for every day.”
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek: “It encourages financing consumable goods that have no lasting value. By the time you make your final payment, that meal was consumed weeks or months ago. This contradicts my fundamental financial wisdom about not financing items with zero residual value.”
What Happens Next
Thompson said as a result of the Klarna DoorDash partnership, some Americans will see their debt levels increase, and defaults could spike.
“Let’s be honest—this is just another tool to keep folks spinning on the 9-to-5 hamster wheel, paying down loans they never should’ve taken in the first place,” Thompson said.
“We’re now using loans to pay for food. I know people will argue, ‘Well, we already do that with credit cards and groceries.’ Fair. But this feels different. This is like tossing sparks on dry grass in the middle of a windstorm.”
Ryan said the partnership arrives at an especially bad time, when Americans are already facing record levels of debt with serious delinquencies on auto loans and credit cards reaching 14-year highs.
“For anyone considering using Klarna for DoorDash orders, I’d recommend looking at more financially doable alternatives like grocery delivery, batch cooking, or meal preparation services that offer better value,” Ryan said. “The simple truth is that if you can’t afford food delivery outright, financing it through BNPL services will likely lead to a worse financial strain in the long run.”
