(A bad) sign of the times

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DoorDash, Klarna sign deal for deferred, installment food delivery payments.

DoorDash and Klarna, a company that offers “buy now, pay later” programs, have come together on a deal for deferred and installment food delivery payments.

“In the coming months, DoorDash customers will be able to enjoy Klarna’s seamless range of payment options when purchasing groceries, retail, and even DashPass Annual Plan – on DoorDash.com or through the DoorDash app,” according to a webpage on the deal on Klarna’s website.

It’s DoorDash’s first BNPL alliance and gives users of the restaurant delivery service a new way to pay for meals. Klarna said in a press release that DoorDash customers will be able to pay in full at checkout, split payments into four equal interest-free installments, or defer to dates that align conveniently with payday schedules.

“Our partnership with DoorDash marks an important milestone in Klarna’s expansion into everyday spending categories,” Klarna’s Chief Commercial Officer David Sykes said on the page.

“By offering smarter, more flexible payment solutions for groceries, takeout, and retail essentials, we’re making convenience even more accessible for millions of Americans,” Sykes added.

And as usual, reality marches behind The Bee:

HotAir’s Duane Patterson is less than lukewarm on this new way to finance a fast food meal:

No, no, no. A thousand times, no. Do not listen to the siren song of "pay the full amount in 7 days and it's interest-free." Do not fall for the APR starts at 0% line. Why? Because if you're occupying the station in life where you have to engage in the equivalent of a payroll advance loan for your chicken nugget meal, you're not qualifying for 0% APR. You're going to be at the other end of the spectrum, which is around 33%. And that's already on top of Klarna tacking on another 10% service charge on top of Door Dash's 10-15% delivery charge, which is on top of your fast food check, which is elevated to an absurd amount after paying entry-level employees $20 dollars an hour. Right here is where I draw the line. 

My goal is not normalizing snobbery. But the cold, hard reality is if you're feeling the need to finance your Happy Meal, literally adapting 100-year-old Wimpy economics meant to be a joke well into the 21st Century with all of its high-tech conveniences, it's time to think about stuff you can make at home. It's a hell of a lot cheaper, and it's an awful lot better for you, in most cases. 

Patterson certainly offers something to chew on.