Latest news with #AnandSubbarayan
Yahoo
04-04-2025
- Business
- Yahoo
DoorDash has a new ‘buy now, pay later' option but experts are skeptical. Would you try it?
DoorDash is best known as an app that allows people to order food for delivery. That's why it may come as a surprise that it's partnered with a service called Klarna that allows customers to finance purchases. It may seem odd to finance — or pay over time — for takeout food, but the company's head of money products recently explained why DoorDash made this choice. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Here are 3 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? "As we expand DoorDash's offerings — from groceries and beauty to electronics and gifts — flexible payment options are essential to meeting our customers' needs,' Anand Subbarayan, the company's head of money products, explained in an announcement about the new partnership. Regardless of the reasoning, however, there are many experts who are concerned that this "eat now, pay later" arrangement will only add to America's debt binge and lead people into financial trouble that makes it harder for them to make ends meet. Under the new partnership with Klarna, DoorDash users will have three choices when they pay for their purchases. They can: Pay in full at the time of the order. Pay in four, breaking up the payment into four equal installments that are interest-free. Pay later, which allows customers to defer payments until a specific time, such as the day that they get paid. "This partnership empowers customers with maximum choice and control over how they pay – from groceries and the season's big-ticket electronics to home improvement supplies, beauty and even their DashPass Annual Plan membership," the DoorDash announcement said. Both the pay in four and pay later options are considered buy now, pay later (BNPL) products. On May 22, 2024, the Consumer Financial Protection Bureau (CFPB) issued new rules confirming that BNPL lenders should be treated like credit cards and consumers must be extended the same protections card issuers provide, including the right to dispute charges and to demand a refund after returning products purchased using BNPL. Unfortunately, even with these protections in place, BNPL increases the risks of financial problems for consumers. Research published in Harvard's Journal of Marketing shows that consumers who used BNPL were likely to spend more, with the likelihood of completing a transaction increasing from 17% to 26%. Basket sizes for BNPL orders were also 10% larger on average, and the increase in spending that resulted persisted for six months. Financially constrained shoppers who often rely on credit were the most vulnerable to these spending increases, increasing their basket size by 14%. Read more: Trump warns his tariffs will spark a 'disturbance' in America — use this 1 dead-simple move to help shockproof your retirement plans ASAP The addition of Klarna as a payment method did not go unnoticed, with experts having a lot to say about the idea of borrowing money for takeout food. 'Eat now, pay later is an awful trap,' Douglas Boneparth, president of Bone Fide Wealth, said on X. 'If you need to borrow to have a burrito delivered to you, you are the product. Nothing more. These companies aren't helping people. In fact, they are taking advantage of them.' There's also concern that offering this easy access to credit could worsen the debt binge already going on in the United States. Debt binge is an over-reliance on credit of all types. As data from the Federal Reserve in February showed: Credit card balances were up $45 billion and hit $1.21 trillion by the end of December 2024. Auto loan balances increased $11 billion to $1.66 trillion. Mortgage balances increased by $11 billion to $12.61 trillion. HELOC balances increased by $9 billion to $396 billion. Retail credit cards and other consumer loans grew by $8 billion. Student loans grew by $9 billion and hit $1.62 trillion. Continued borrowing at these levels may be unsustainable, and now consumers could add DoorDash debt to this list. Unfortunately, researchers from the CFPB found that once people begin to rely on BNPL services, they do so again and again. In fact, the CFPB showed 63% of borrowers originated multiple simultaneous BNPL loans at the same time at some point during 2022. So, while it may be tempting to pay for a food purchase in installments or defer payments until payday — especially if you feel like you need a treat and don't have much cash to your name — you likely want to avoid this option. Instead, you should stick to a budget that includes a set amount of spending for things like DoorDash so you can splurge guilt-free without borrowing while also saving for the future. If you can't afford an unnecessary purchase like DoorDash, just consider saying no to it and cooking at home. Deleting apps that make overspending easy may be the next move. Getting back to classic home cooking can make a big difference in your total expenditures — even if you aren't financing your deliveries. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Cost-of-living in America is still out of control — and prices could keep climbing. Use these 3 'real assets' to protect your wealth today, no matter what Trump does This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
24-03-2025
- Business
- Yahoo
DoorDash enters payments partnership with Klarna
Commerce platform DoorDash has collaborated with Klarna, a company specialising in buy now, pay later (BNPL) services, to provide the latter's payment options to its customers. The payments option will be available on and through the DoorDash app. In the upcoming months, DoorDash customers can access Klarna's payment solutions when buying retail items or subscribing to the DashPass Annual Plan. Klarna will be listed as a payment alternative at checkout, allowing users to select from various payment methods. Klarna's payment options include 'Pay in Full', where customers can settle their purchases immediately, 'Pay in 4', which divides the payment into four equal, interest-free instalments, and 'Pay Later', which enables customers to postpone payment. This integration is expected to provide DoorDash customers in the US with an array of choices for managing payments. The service will be available for a diverse selection of items on the DoorDash Marketplace. Klarna chief commercial officer David Sykes said: 'Our partnership with DoorDash marks an important milestone in Klarna's expansion into everyday spending categories. By offering smarter, more flexible payment solutions for groceries, takeout, and retail essentials, we're making convenience even more accessible for millions of Americans.' DoorDash money products head Anand Subbarayan stated: As we expand DoorDash's offerings—from groceries and beauty to electronics and gifts—flexible payment options are essential to meeting our customers' needs. We're excited to partner with Klarna to enhance the convenience we offer, including flexible payment options for our DashPass Annual Plan, the most affordable way to order on DoorDash with added streaming and ride benefits at no extra cost.' This month, DoorDash announced the availability of SNAP/EBT payment options for purchases made at Dollar General through the DoorDash Marketplace. "DoorDash enters payments partnership with Klarna " was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
22-03-2025
- Business
- Yahoo
DoorDash partners with Klarna to offer customers 'more ways to pay'
Worried that your DoorDash order from Wingstop might break the bank? The online delivery platform announced Thursday it will be offering customers the ability to finance purchases with Klarna. DoorDash customers will be able to take advantage of the new partnership in the coming months, the company said in a news release. Klarna's "seamless range of payment options" can be applied online or through the DoorDash app when buying groceries, fast food, electronics or anything else you might want to buy, including the DashPass Annual Plan membership. "As we expand DoorDash's offerings—from groceries and beauty to electronics and gifts—flexible payment options are essential to meeting our customers' needs," Anand Subbarayan, DoorDash executive, said in the news release. "We're excited to partner with Klarna to enhance the convenience we offer, including flexible payment options for our DashPass Annual Plan, the most affordable way to order on DoorDash with added streaming and ride benefits at no extra cost," Subbarayan added. DoorDash customers will see Klarna as an additional payment option when reaching check-out. "This partnership empowers customers with maximum choice and control over how they pay – from groceries and the season's big-ticket electronics to home improvement supplies, beauty, and even their DashPass Annual Plan membership," DoorDash said in the news release. Klarna options on DoorDash will include: Pay in Full: Gives customers the ability to pay for what they love right away using Klarna's seamless payments experience. Pay in 4: Gives customers the ability to pay in four equal interest-free installments Pay Later: Gives customers the ability to defer payments to a more convenient time, such as a date that aligns with their paycheck schedules. This article originally appeared on USA TODAY: DoorDash, Klarna partner to offer delivery payment plans Sign in to access your portfolio
USA Today
21-03-2025
- Business
- USA Today
DoorDash partners with Klarna to offer customers 'more ways to pay'
DoorDash partners with Klarna to offer customers 'more ways to pay' Show Caption Hide Caption Customers who don't tip may have to wait longer for their orders Doordash announced it will begin to test warning customers who don't usually tip: you may be waiting longer to get your food. Straight Arrow News Worried that your DoorDash order from Wingstop might break the bank? The online delivery platform announced Thursday it will be offering customers the ability to finance purchases with Klarna. DoorDash customers will be able to take advantage of the new partnership in the coming months, the company said in a news release. Klarna's "seamless range of payment options" can be applied online or through the DoorDash app when buying groceries, fast food, electronics or anything else you might want to buy, including the DashPass Annual Plan membership. "As we expand DoorDash's offerings—from groceries and beauty to electronics and gifts—flexible payment options are essential to meeting our customers' needs," Anand Subbarayan, DoorDash executive, said in the news release. "We're excited to partner with Klarna to enhance the convenience we offer, including flexible payment options for our DashPass Annual Plan, the most affordable way to order on DoorDash with added streaming and ride benefits at no extra cost," Subbarayan added. DoorDash to offers 3 new ways to pay with Klarna DoorDash customers will see Klarna as an additional payment option when reaching check-out. "This partnership empowers customers with maximum choice and control over how they pay – from groceries and the season's big-ticket electronics to home improvement supplies, beauty, and even their DashPass Annual Plan membership," DoorDash said in the news release. Klarna options on DoorDash will include:
Yahoo
21-03-2025
- Business
- Yahoo
DoorDash partners with Klarna to offer customers 'more ways to pay'
Worried that your DoorDash order from Wingstop might break the bank? The online delivery platform announced Thursday it will be offering customers the ability to finance purchases with Klarna. DoorDash customers will be able to take advantage of the new partnership in the coming months, the company said in a news release. Klarna's "seamless range of payment options" can be applied online or through the DoorDash app when buying groceries, fast food, electronics or anything else you might want to buy, including the DashPass Annual Plan membership. "As we expand DoorDash's offerings—from groceries and beauty to electronics and gifts—flexible payment options are essential to meeting our customers' needs," Anand Subbarayan, DoorDash executive, said in the news release. "We're excited to partner with Klarna to enhance the convenience we offer, including flexible payment options for our DashPass Annual Plan, the most affordable way to order on DoorDash with added streaming and ride benefits at no extra cost," Subbarayan added. DoorDash customers will see Klarna as an additional payment option when reaching check-out. "This partnership empowers customers with maximum choice and control over how they pay – from groceries and the season's big-ticket electronics to home improvement supplies, beauty, and even their DashPass Annual Plan membership," DoorDash said in the news release. Klarna options on DoorDash will include: Pay in Full: Gives customers the ability to pay for what they love right away using Klarna's seamless payments experience. Pay in 4: Gives customers the ability to pay in four equal interest-free installments Pay Later: Gives customers the ability to defer payments to a more convenient time, such as a date that aligns with their paycheck schedules. This article originally appeared on USA TODAY: DoorDash, Klarna partner to offer delivery payment plans
