DoorDash is partnering with the fintech company Klarna as it will soon offer a food delivery service allowing customers to buy now and pay later for their delivered meals.
In a press release last week, DoorDash announced that its customers will have the option to pay for their orders in full, through four equal installments, or to postpone payments until it is a “more convenient time, such as a date that aligns with their paycheck.”
DoorDash is joining its food delivery competitor, Grubhub, in offering the buy now, pay later option for its customers.Walmart shoppers and those who bank at J.P Morgan Chase have also been offered the option as Americans continue to battle high prices.
The services are also being launched as Americans have grown increasingly reluctant to apply for credit cards, mortgages, and car loans, according to recent data from the New York Federal Reserve.
In February, the percentage of borrowers who needed credit but didn’t apply out of fear of being denied grew to 8.5%, the highest number since the demographic, known as discouraged borrowers, began being tracked in 2013.
As a result of the hesitancy, companies have been forced to adapt as they look to maintain customers.
Klarna COO David Sykes spoke about his company’s partnership with DoorDash, noting in a press release that it is a “milestone in Klarna’s expansion into everyday spending categories.”
However, not everyone is on board with buy now, pay later loans, as Consumer Reports warns that they carry high interest rates and fees.
Still, Americans are planning on taking advantage of the loans, as a Lending Tree study recently found that just over half of Americans expect to apply for at least one in the next six months.