Martin Lewis slams Deliveroo for buy now pay later Klarna option - advising not to borrow for ‘cheeky Nandos’

Watch more of our videos on ShotsTV.com 
and on Freeview 262 or Freely 565
Visit Shots! now
Money Saving Expert, Martin Lewis, asks Deliveroo if they really need to ‘pump debt to sell takeaways’.

Deliveroo has faced backlash from experts and economists after introducing Klarna as a payment method for their services, including financial guru, Martin Lewis. The fast food delivery service announced that customers can choose to “eat now, pay later” leading to people such as the Money Saving Expert creator, warning people of the dangers of the service amid the cost of living crisis.

Swedish “buy now, pay later’’ service Klarna has long received criticism for its easy approach to putting people in debt with Lewis taking to Twitter to say: “Dear @Deliveroo do you really need to pump debt as a way to pay for takeaways?

Hide Ad
Hide Ad

“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 a planned one-off budgeted purchase, not a cheeky Nandos.”

Unlike other services offering similar payment methods, Klarna has the authority to pass arrears on to debt collectors, which might lead to further economic struggle later on. Klarna lets customers pay now, pay in 30 days, or split the payment into three equal payments over 60 days if you spend more than £30.

Consumer rights expert 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 huge impact on your finances if the debt collectors are summoned - and people should now be encouraged to borrow for essentials like food that can be obtained much cheaper by visiting a shop”

Hide Ad
Hide Ad

A spokesperson for Klarna said: “People have been paying for food deliveries on 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.”

Deliveroo said: “Deliveroo offers choice to our customers, from neighbourhood eateries and your weekday lunch to a Saturday night celebration.

“Millions of people are already using Klarna and we’re giving customers more choice and more flexibility with a safe, secure way to pay online.”

Deliveroo is facing criticism after partnering up with Klarna.Deliveroo is facing criticism after partnering up with Klarna.
Deliveroo is facing criticism after partnering up with Klarna. | Getty Images

Personal finance expert Tara Flynn from Choosewisely.co.uk said: "If you’re considering buying your takeaway now and paying for it later…don’t. Getting yourself into debt over a meal that’s gone in 15 minutes isn’t worth it. Having fast food delivered should be considered a treat for now and again, and if you can’t afford to do it, you shouldn’t.

"I think it’s irresponsible for Deliveroo to offer this as an option, and need to seriously reconsider this move ASAP".

Related topics:

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.

News you can trust since 1877
Follow us
©National World Publishing Ltd. All rights reserved.Cookie SettingsTerms and ConditionsPrivacy notice