I know it may be tempting.
But if you’re considering using a Klarna financing plan toDoorDash your Chipotle order, maybe take a beat.
But there are some potential downsides.
By the end of it all, your $20 burrito could wind up costing closer to $70.
I don’t mean to be judgmental.
In fact, DoorDash and Klarna are betting you will.
The announcement, um, raised some eyebrows.
“I just don’t think it’s an advisable way to be paying for your DoorDash.”
The optionality and ease of use helped BNPL boom during the pandemic, but in recent yearsgrowth has slowed.
“Part of it is driven by these partnerships.
This is similar to credit card swipe fees, but the payouts tend to be even higher.
“It works on our optimistic view of ourselves in the future.
With BNPL, not so much.
Buy now, pay later users tend to be in more precarious spots than the average consumer.
The use of buy now, pay later has been linked toincreased total spending, too.
The concern is that people who use BNPL might buy more even when they shouldn’t.
They wind up with multiple short-term loans they’re trying to pay off every two weeks.
It’s hard to keep track of, as the bills or automatic withdrawals can hit at different times.
“Let’s say you miscalculate something.
“So you could really balloon the amount of money you pay for just one thing.”
Breaking up large payments for goods that we’re going to use for years can make sense.
But a quick food order may not fall into this category.
“Delivered food may in fact be the least durable good we’ve tried this with.”
They also pointed to a Klarnablog postabout the deal.
This is a way to squeeze more cash out of consumers.
Regardless, the option to pay in installments is coming to a DoorDash order near you.
Maybe think twice before you take advantage of it.
Emily Stewartis a senior correspondent at Business Insider, writing about business and the economy.
