NASHVILLE, Tenn. (WTVF) — DoorDash users will soon be able to split the cost of their meals into multiple payments, thanks to a new partnership with Klarna, a buy now, pay later (BNPL) service.
Violet Andrews and Roo Stiegler, who were enjoying the beautiful weather at Centennial Park, are among those who could soon use the new payment option.
"We DoorDashed," Andrews said with a laugh.
Starting soon, customers checking out on DoorDash will have three options: pay in full, split the total into four interest-free payments, or defer payment until their next paycheck. While this could offer convenience, some financial experts warn it may not be the best choice for everyone.
Diego Eguiarte, founder of Nuestro Financial, cautions that relying on BNPL services for food could lead to bad financial habits.
"If you're going to have friends over and you’re going to get a pizza today and have to pay for the whole month, one payment a week — I don't think that’s smart for credit," Eguiarte said. "You’re just risking your credit profile."
Eguiarte also emphasizes the importance of reading the fine print.
"Pay attention to interest rates, fees, and also what happens when you don’t pay," he said. "It’s going to be more expensive if it takes you longer than contracted."
While BNPL services can be useful for large purchases, Eguiarte suggests they may not be the best choice for everyday items like fast food or groceries.
For Andrews and Stiegler, the issue comes down to financial literacy.
"It can be a slippery slope, especially with necessities," Stiegler said.
Klarna defended its business model, saying the new payment options will only apply to purchases over $35.
More information here.
Do you have more information about this story? You can email me at aaron.cantrell@newschannel5.com
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