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.
Klarna, founded in 2005, said in its prospectus that it has 675,000 merchant partners in 26 countries. It’s among the most hotly anticipated IPOs of the year following an extended stretch of historically little activity for new offerings.
I can see the deferred payments until payday being a big feature for people. That might increase takeout during the week quite a bit.
🤷🏻♂️ who am I to tell anyone what to do with their money, or anticipated money
Do I think people should just cook their own meals (or marry someone who does that for them)?
Yes, but it's also silly to forego eating out solely because your paycheck doesn't deposit until tomorrow.
I guess to the extent that people struggle with self control (hyperbolic discounting / dual self behavioral models), one could argue that making it easier for people to borrow against their future earnings benefits their short-run selves at the expense of their long-run selves.
For sure. That's why I implied a ceteris paribus in there. I'd wager that in most cases of not being able to afford takeout in the moment, it's a bad idea to spend on takeout.
You can't do that because you will be paying your previous deferred payment.
Depending on the amount of takeout, I suppose.
Haha. Finance your take out? Oh my goodness. This is a new low.
Or a new high, depending on your perspective
True
I have an account with affirm but I have never activated the card
Does block own affirm? They own one of those buy now pay later companies.
affirm is public
https://www.nasdaq.com/market-activity/stocks/afrm
It’s after pay they bought. My mistake.
Exactly... oh how far America has fallen....
You could buy maple syrup and pay it off in four fortnightly increments. How great
I see that here you can Afterpay fast food, fuel, groceries and bills. You will own nothing and owe everyone everything
Delocalization of economic consequence Spacial: "welfare", "spreading the burden" Temporal: "credit", "installment plans"
Thus our culture's euphemistic relationship with money...
I thought credit cards would allow you to buy food before a paycheque comes in lol
With inflation going out of hand, people are having to take debt to buy food. This is another side of the coin where the fiat machinery is pushing people to eat crickets and insects as the more sustainable option.
I mean give the people what they want I guess, although I would just say don't fucking order restaurant delivery if you don't have the money, build a life where you have the money or wait until payday.
that being said, does Klarna have info on the % of defaults they get in general and how do they go after defaulters?