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People were surprised to see a new delivery app option for those who might not have the money to pay for it or the ones who can’t afford it.
Users could now choose to use ‘Klarna‘ to pay for their food while looking at payment alternatives as the Financial company ‘Klarna’ doesn’t charge interest or late penalties for postponed payments.
The decision sparked a backlash, with many claiming that the app was encouraging consumers to incur debt during a period of significant financial uncertainty, reports The Manchester Evening News.
Martin Lewis tweeted and asked Deliveroo if they needed their consumers to incur debt to pay for takeout.
He said that although “Buy Now, Pay Later” appears harmless but it is not.
Lewis said, “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 fact that ‘Klarna’ can pass arrears to debt collectors, adding financial stress to customers who are unable to make the payments, should be noted even though it has many alluring possibilities compared to other financial services.
Millions of people choose ‘Klarna’ as a mode of safe, secure way to make online payments.
Related FAQs
What is Klarna?
Klarna is a financial company that doesn’t charge interest or late penalties for postponed payments.
What did Martin Lewis tweet?
Martin Lewis tweeted and asked Deliveroo if they needed their consumers to incur debt to pay for takeout. He strongly said that Borrowing should only be done when necessary.
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