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Daily Record
Daily Record
Lifestyle
Kieran Isgin & Rachel Williams

Martin Lewis slams Deliveroo over new payment method for takeaways

Money guru Martin Lewis has hit out at Deliveroo after it was reported the service was offering a new payment method for customers ordering their takeaways.

When customers were ordering food via the takeaway giant, many of them noticed a new option being presented at the checkout for those who might not be able to afford it - Klarna. The new option now allows customers to spread the cost over three instalments.

Klarna is a Buy Now, Pay Later Scheme that doesn't charge interest or implement late fees for delayed payments. However, the schemes have come under fire recently, especially during the current cost of living crisis.

And now Deliveroo is facing the same criticism for implementing the new payment method, with many suggesting the app is encouraging shoppers to build up debt during a time of extreme financial uncertainty.

Money-saving expert Martin Lewis slammed the app in a tweet that read: "Dear @Deliveroo do you really need pump debt as a way to pay for takeaways? Buy Now Pay Later may seem innocuous but it is 1) Not yet regulated 2) Debt, even if done right its 0%.

Deliveroo now offers Klarna as a payment method (Rachel Pugh/ Manchester Evening News)

"Borrowing should only be if NEEDED, for planned one off budgeted purchase, not a cheeky nandos."

While the thought of paying in instalments is appealing, it is worth taking into consideration that Klarna has the ability to pass arrears on to debt collectors, increasing financial stress on users that are unable to make the payments. Customers using Deliveroo will now notice Klarna as an additional payment option when they go to pay for their takeaway, reports The MEN.

The three following options presented to them will be:

  • Pay Now, to pay the full amount immediately;
  • Pay in 30, to pay the full amount within 30 days
  • Pay in 3, to pay in three equal instalments over 60 days, with a minimum spend of £30

Consumer rights expert and Mirror columnist Martyn James said: "It's extraordinarily irresponsible to be encouraging people to take out credit for takeaways.

"Failure to repay a credit deal can have a huge impact on your finances if the debt collectors are summoned - and people should not be encouraged to borrow for essentials like food that can be obtained much cheaper by visiting a shop."

A Klarna spokesperson said: "People have been paying for food deliveries with credit cards and overdrafts for decades but they've been stung by rip-off fees and extortionate interest so it’s time consumers had the choice of a healthier alternative where they only ever pay the original cost of the purchase.”

A Deliveroo spokesperson said: “Deliveroo offers 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.”

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