Swedish Buy, Pay Later (BNPL) Fintech giant Klarna has signed a major deal with food delivery service Doordash, further strengthening its position in the US market as the company prepares for future IPOs. The contracts allow Americans without financial literacy to fund the purchase of meal delivery.
CNBC Report Klarna, a leading player in the fast-growing BNPL industry, announced on Thursday that it had partnered with Doordash to mark Food Delivery Company's first BNPL Alliance in the US. This partnership allows DoorDash customers to offer flexible payment options, allowing purchases to be split into four comparable interest-free installments or defer payments to match payday schedules. Incredibly, some Americans seem enthusiastically embraced the option of taking out debt to deliver food.
Collaboration between the two companies is expected to boost the presence of fintech companies in the US market, and is steadily expanding there. Top Commercial Head David Sykes highlighted the importance of the partnership, saying, “The partnership with Doordash represents an important milestone in Klarna's expansion into the everyday spending category.”
The announcement comes just after another big win for Klarna as it became the exclusive provider of BNPL loans for OnePay, a fintech company backed by retail giant Walmart. These well-known partnerships are expected to strengthen the position of fintech players in preparation for their expected debut on the New York Stock Exchange.
The company's prospectus filed last week revealed revenues increased to $2.8 billion the previous year, revealing adjusted operating profit of $181 million.
Klarna's partnership with Doordash could resonate with a wide audience, especially with the growing demand for flexible payment options, especially among younger consumers. The convenience of splitting payments and matching payday schedules is expected to attract more customers to the food delivery platform while simultaneously increasing the volume of European companies' transactions.
Please read more CNBC is here.
Lucas Nolan is a reporter for Breitbart News, which covers the issues of freedom of speech and online censorship.
