Swedish buy now, pay later (BNPL) fintech giant Klarna has landed a significant deal with food delivery service DoorDash, further solidifying its position in the U.S. market as the company gears up for its upcoming IPO. Thanks to the deal, Americans with no financial literacy can now finance their meal delivery purchases.
CNBC reports that Klarna, a leading player in the rapidly growing BNPL industry, announced on Thursday that it has partnered with DoorDash, marking the food delivery company’s first BNPL alliance in the United States. This partnership will provide DoorDash customers with flexible payment options, allowing them to split their purchases into four equal interest-free installments or defer payments to align with their payday schedules. Incredibly, it seems some Americans are enthusiastically embracing the option to go into debt to have food delivered.
The collaboration between the two companies is expected to boost the fintech company’s presence in the U.S. market, where it has been steadily expanding its reach. Chief Commercial Officer David Sykes emphasized the significance of the partnership, stating, “Our partnership with DoorDash marks an important milestone in Klarna’s expansion into everyday spending categories.”
This announcement comes on the heels of another major win for Klarna, as it recently became the exclusive provider of BNPL loans for OnePay, a fintech company backed by retail giant Walmart. These high-profile partnerships are expected to strengthen the fintech player’s position as it prepares for its anticipated debut on the New York Stock Exchange.
The company’s prospectus, filed last week, revealed a 24 percent increase in revenue to $2.8 billion in the previous year, along with an adjusted operating profit of $181 million, a significant turnaround from the $49 million loss it incurred a year earlier.
As the demand for flexible payment options continues to grow, particularly among younger consumers, Klarna’s partnership with DoorDash is likely to resonate with a wide audience. The convenience of splitting payments or aligning them with payday schedules is expected to attract more customers to the food delivery platform, while simultaneously boosting the European company’s transaction volumes.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
