Deliveroo has partnered with Klarna, allowing customers to pay for their takeaway in instalments.
(Picture: AFP via Getty Images)Martin Lewis has criticised Deliveroo for teaming up with Klarna, allowing customers to pay for their takeaway in instalments.
The partnership has faced a backlash for encouraging people to use a buy now, pay later (BNPL) scheme to pay for food amid the cost of living crisis.
“Dear Deliveroo, do you really need to pump debt as a way to pay for takeaways?” the MoneySaving Expert founder said.
“Buy Now Pay Later may seem innocuous but it is 1) Not yet regulated 2) Debt, even if done right it’s 0%.
“Borrowing should only be if NEEDED, for planned one-off budgeted purchase, not a cheeky Nando’s.”
Dear @Deliveroo do you really need pump debt as a way to pay for takeaways?
— Martin Lewis (@MartinSLewis) October 12, 2022
Buy Now Pay Later may seem innocuous but it is 1) Not yet regulated 2) Debt, even if done right its 0%
Borrowing should only be if NEEDED, for planned one off budgeted purchase, not a cheeky nandos.
The Klarna payment option allows people to order a takeaway on Deliveroo and pay for it either in full within 30 days or in three instalments over 60 days. The latter option is for orders of £30 or more.
When announcing the partnership, David Sykes, Chief Commercial Officer, Klarna, said: “Deliveroo provides a great service to households, and that’s why we’re excited to offer our alternative payment options to Deliveroo customers.
“We believe you should only pay for what you buy with no interest or fees, and it’s never been more important for consumers to have access to payment options which help them stay in control of their finances.”
Carlo Mocci, Chief Business Officer UK&I, Deliveroo, said: “Deliveroo offers amazing choice to our customers, from neighbourhood eateries and your weekday lunch to a Saturday night celebration.
“Millions of people are already choosing Klarna and we’re giving customers more choice and more flexibility with a safe, secure way to pay online.”
But Martin Lewis is not alone in calling out the food delivery service.
Politicians have also hit out at Deliveroo’s new initiative, including the Labour MP for Makerfield, Yvonne Fovargue, who said on Twitter: “Adding buy now, pay later for takeaways encourages and normalises debt. With the cost of living rising, eat today and pay for the next four weeks is an appalling idea.”
Rosie Parry, Labour Councillor for Deptford, said in a tweet: “Klarna and Deliveroo are really showing their colours with BNPL options for FOOD.
“If people can’t afford to eat without going into debt, society is failing. If people are being encouraged to buy extra takeaways they can’t really afford, the brands involved are gross predators.”
