Buy now, pay later for ... your burger

Zoom in: Klarna will provide multiple payment options in DoorDash, including:

• Pay immediately.
• "Pay in 4," which allows customers to pay in four equal interest-free installments.
• "Pay Later," which allows them to defer payments until what Klarna calls "a more convenient time."

State of play: DoorDash rival GrubHub was already offering Klarna payment services.

• But DoorDash is the market leader in restaurant delivery services, commanding nearly 63% of the market, according to Earnest Analytics, making its move into BNPL a seismic moment for the payment option.
• In addition to food, DoorDash also offers delivery from a wide variety of other retailers.

What they're saying: "By offering smarter, more flexible payment solutions for groceries, takeout, and retail essentials, we're making convenience even more accessible for millions of Americans," Klarna chief commercial officer David Sykes said in a statement.

• A Klarna spokesperson said the company "conduct(s) rigorous eligibility checks before approving a purchase" and "we restrict further use of our services if a payment is missed."
• "This approach helps prevent debt from accumulating, the spokesperson said. Klarna claims 99% of its lending is repaid, with losses well below the credit card industry standard.

The intrigue: The announcement comes as Klarna is barreling toward an IPO in pursuit of a $15 billion valuation.

• The company says it has 93 million active consumers and works with over 675,000 merchants in 26 countries.

💭 Our thought bubble via Axios Pro: Fintech Deals co-author Ryan Lawler: This deal is less about adding a buy-now-pay-later offering to DoorDash customers, and more about Klarna pitching itself as the default payment platform for everyday spending categories.

Editor's note: This report was updated to include comment from Klarna.