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.
Food delivery apps driving rise of ‘dark’ kitchens in India
Did you know that popular eateries like Haldiram’s, Chaayos, Keventers, Saravana Bhavan and Vasudev Adigas, to name only a few, have set up cloud kitchens in partnership with Zomato?
They have. And that is the reason why you get to order food from these eateries even in areas near where their restaurants may not exist.
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.
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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