Buy now, pay later firms like Klarna and Block’s Afterpay could be about to face tougher rules in the U.K.
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Klarna, the buy now, pay later lender that’s headed for an initial public offering, said on Thursday that it’s signed on DoorDash as a partner, another sign of momentum for public market investors.
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, which is headquartered in Sweden, filed its prospectus last week to list on the New York Stock Exchange. Revenue last year increased 24% to $2.8 billion, and adjusted operating profit was $181 million, swinging from a loss of $49 million a year earlier. CNBC reported on Monday that Klarna will be the exclusive provider of buy now, pay later loans for Walmart, taking a coveted partnership away from rival Affirm.
“Our partnership with DoorDash marks an important milestone in Klarna’s expansion into everyday spending categories,” said David Sykes, Klarna’s chief commercial officer, in Thursday’s release.
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.