Klarna Partners with DoorDash Ahead of IPO: A New Era of Flexible Food Financing — But at What Cost?

In a bold and strategic move that merges convenience with fintech, DoorDash has partnered with Klarna to introduce Buy Now, Pay Later (BNPL) payment options for U.S. customers. This partnership comes as Klarna gears up for its highly anticipated U.S. IPO, seeking a valuation north of $15 billion.

With Klarna's integration, DoorDash users can now choose from:

• Paying in full at checkout

• Splitting their purchase into four interest-free payments

• Or deferring payment to a later date

This flexibility extends not only to meals but also to groceries, electronics, beauty items, and even DashPass Annual Memberships—making this move a significant expansion in how consumers can manage their everyday spending.

A Fintech Milestone with Massive Implications

David Sykes, Chief Commercial Officer at Klarna, described this partnership as a "milestone" that reflects Klarna's growth into everyday spending categories. The company’s 2024 performance backs this up: $2.8 billion in revenue and a net profit of $21 million after prior years of losses. Klarna is clearly positioning itself as a major player in both fintech and consumer lifestyle spaces.

DoorDash’s own diversification beyond food delivery into everyday essentials makes the timing perfect. According to Anand Subbarayan, DoorDash’s Head of Money Products, the goal is to meet customers where they are financially—with options that make daily necessities more accessible.

But Here's the Catch: Should You Really Use Debt to Buy Food?

While BNPL services offer flexibility and can be a lifesaver in emergencies, using debt—even interest-free debt—to buy food raises red flags when it becomes habitual. Here's why:

1. Food Is a Recurring Expense

Unlike a one-time investment, like a couch or laptop, food is something you purchase every week—if not every day. Using debt for recurring costs can quickly trap you in a cycle of dependence where you're constantly using tomorrow's money to pay for today's meals.

2. You Might Overspend

BNPL services can psychologically disconnect people from the real cost of their purchases. When the full amount isn't felt at checkout, it's easy to order a premium meal or add extra items you wouldn’t have otherwise bought. This inflates spending—on a necessity you’re already paying for regularly.

3. Debt for Essentials Is a Slippery Slope

Once you're comfortable using financing for food, it's easier to justify doing the same for other essentials like gas, toiletries, or rent. This undermines your financial stability and can snowball into a lifestyle of borrowing just to survive.

4. Hidden Consequences

Even though Klarna advertises no interest, late fees and negative credit reporting can apply if you miss a payment. So that $30 takeout could cost much more—and harm your credit—if you're not on top of your financial game.

Financial Flexibility Shouldn't Mean Financial Fragility

The Klarna-DoorDash partnership is clearly about convenience—but consumers must ask: at what cost? Using BNPL for food may be helpful in a true pinch, but it’s not a healthy long-term strategy. Ideally, meals and groceries should come from your current income, not deferred debt. If you can’t afford them now, financing won’t make it more affordable—it just kicks the can down the road.

Instead of using BNPL for food:

• Create a realistic weekly grocery budget

• Take advantage of discount grocers, coupons, and cashback apps

• Plan meals ahead to reduce last-minute, high-cost orders

Final Thoughts

Klarna’s partnership with DoorDash reflects the future of spending—one that prioritizes flexibility and convenience. But consumers should remain vigilant. While the technology is empowering, using debt for basics like food can quietly weaken your financial foundation.

Just because you can split the payment doesn’t mean you should.