Imagine paying for your food delivery service with credit. The companies Doordash and Klarna are joining forces to provide a buy now, pay later option for consumers.
There is now a new payment option for DoorDash customers. DoorDash and Klarna, announced a buy now, pay later partnership on March 20.
The new deal allows people to purchase DoorDash orders of at least $35 minimum with their Klarna accounts.
Consumers can either pay upfront, pay in four payments or pay later.
The companies have said this is necessary in order to “meet customers demands.“
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People in New Haven shared some skepticism over how helpful this option will be for people who may be struggling financially.
“That’s great as an option but long term strategy wise mostly for individuals, I don’t know if its a good idea to go in debt for eating your food," Jamie Pulley said.
One New Haven resident added the change to him sounds like an overstep from the companies, but said it could help those who are in a bind.
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“I’m trying to use less DoorDash but you know, I can see a situation if people are tight for time and money, that could come into play but it's certainly not advantageous to anybody," Elliott Boudreau said.
Brian Marks, senior lecturer of economics at the University of New Haven, warned people should be cautious when using buy now pay later options for consumable products.
“The individual consumer is yes reducing a friction, but it's coming at a price, they consume that good and if they are unable to pay for that good in a timely manner, the cost associated with the buy now pay later model, could be quite significant," Marks said.
Marks said this latest move is arguably another subscription model.
"By reducing the upfront cost and spreading it out over time but the core difference here is this is something that's consumable versus in all the other instances we have an asset," he said.
While the option to eat your food now and pay later may seem simple to manage, Marks said it could also target people who are already in financial hardships such as young adults or people living paycheck to paycheck.
