If you’ve ever hesitated at checkout, wondering whether you need that grocery haul, electronics upgrade, or self-care splurge—you’re not alone. And Klarna, the AI-powered payments and commerce platform, is betting big on that exact moment of hesitation.

Klarna has joined forces with DoorDash and Walmart to give shoppers flexible pay options. These strategic partnerships don’t just mark a shift in how we handle money at checkout—they reflect a deeper story about consumer habits, trust, and the evolving economy in 2025.

Klarna And DoorDash Team Up

According to an announcement from Klarna, DoorDash customers in the U.S. will soon see Klarna listed as a payment option when ordering from the app or website. This will make it even easier to snag groceries, electronics, beauty items, and even the DashPass Annual Plan without having to pay the full amount upfront.

The options? Pretty straightforward and stress-relieving:

  • Pay in full at checkout
  • Pay in 4 equal, interest-free installments
  • Pay later at a more convenient time—say, when your paycheck hits

This is especially useful as DoorDash expands beyond food delivery into broader retail categories.

“As we expand DoorDash’s offerings—from groceries and beauty to electronics and gifts—flexible payment options are essential to meeting our customers’ needs,” said Anand Subbarayan, head of money products at DoorDash.

David Sykes, Klarna’s chief commercial officer, frames it this way: “By offering smarter, more flexible payment solutions for groceries, takeout, and retail essentials, we’re making convenience even more accessible for millions of Americans.”

Inside Klarna’s Business Model: How The Company Gets Paid

If you’re thinking, “No fees? No interest? Where’s the catch?”—you’re not alone.

The truth is that Klarna’s model flips the script on traditional credit. Instead of charging customers high interest rates, Klarna makes most of its money by collecting fees from retailers. In an NPR interview with “Planet Money’s” Alexi Horowitz-Ghazi, he explained that merchants pay Klarna anywhere from 4% to 9.5% per transaction—a number that’s often higher than the 2–4% credit card processors charge.

Why would retailers agree to that? Klarna brings them more customers, especially from younger, credit-averse, or budget-conscious demographics. People feel more empowered to hit “buy” when they see manageable, short-term payment options. That psychological shift at checkout drives higher conversion rates and larger average orders.

Klarna’s IPO Signals A Bold New Chapter

Klarna’s recent moves are all building toward a major milestone: its long-anticipated initial public offering in the United States. After a roller-coaster journey that saw the company soar to a $46 billion valuation in 2021—then plunge by 85% during the fintech downturn—Klarna is back in the spotlight. Now valued at around $15 billion, Klarna has returned to profitability and is positioning itself for one of 2025’s most closely watched IPOs, based on a CNBC report.

The company has leaned into artificial intelligence to streamline operations and reduce overhead, helping to stabilize after a turbulent few years. Klarna’s IPO won’t just mark a financial milestone—it’s a test case for the future of fintech in a post-pandemic world. With public tech listings still relatively scarce, industry watchers are paying close attention to how Klarna performs on the public market.

CNBC further noted Klarna’s exclusive Walmart partnership, where the company will provide buy now and pay later loans through Walmart’s fintech arm, OnePay. This underscores the company’s readiness for scale. But more than that, it demonstrates Klarna’s ability to win significant trust from household brands at a time when competitors like Affirm are being displaced.

The IPO will usher in a new chapter for Klarna, redefining the value of flexible financing tools in today’s shifting economy.

Strategic Growth In A Cautious Consumer Climate

Klarna’s bold moves in 2025 come at a time when U.S. consumer sentiment is notably complex. While nearly half of consumers reported optimism in the first quarter of the year, just over a third expressed mixed feelings about the economy—and pessimism even ticked up slightly from the previous quarter.

Despite citing stable inflation as a reason for hope, a 2025 McKinsey & Company consumer report revealed that 50% of consumers still named rising prices as their top financial worry. Older consumers, in particular, voiced more concern about inflation compared to their younger counterparts. These concerns translate into spending behavior: while some discretionary spending—especially on travel—remains strong, many consumers reported trading down or scaling back, particularly on groceries, apparel, and electronics.

In this environment, Klarna’s flexible payment options offer an attractive solution for budget-conscious shoppers seeking more control and breathing room at checkout. Whether buying a meal, groceries, or a new tech device, the ability to defer or split payments can provide tangible relief in a season of economic uncertainty.

Klarna’s expanding partnerships and tech-forward financial tools are reshaping checkout experiences and responding directly to consumer behavior and economic sentiment. And in a year where convenience, caution, and confidence must coexist, Klarna’s positioning may be just what the moment demands.