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Burrito Now, Pay Later
Liquid Lunches And The Serious Case for BNPL Securitization
In March 2025, DoorDash and Klarna announced a deal to let consumers pay for restaurant food, groceries and other delivery orders in four equal, interest-free installments, or “at a more convenient time, such as a date that aligns with their paycheck schedules”. Your $30 takeout order is bundled with “financing” for a new coffee machine, Uber rides, airline tickets, gym membership, dry cleaning, a tire change, and maybe even your monthly rent. Investors buying securities backed by these loans get exposure to a pool of very similar, short-term risks, making it easier to model and understand compared to a portion of a bank's diversified credit card portfolio.
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