TAKEAWAY service Deliveroo is now offering an “eat now pay later” scheme – and it has divided opinion.
The popular website has partnered with buy now pay later (BNPL) giant Klarna to allow customers to pay for their meals in instalments.
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Meanwhile, rival Clearpay is offering Just Eat vouchers, although the latter doesn’t have any BNPL payment options.
The new schemes have proved controversial, with some arguing that it is a “terrible idea” that may trigger unintended consequences.
BNPL services are popular with customers as it lets them spread the cost of items over a longer period, with no interest or extra fees unless payments are missed.
They are usually used for purchases like clothes, or could be handy for essential purchases, but they come with risks too.
Critics say the so-called “eat now pay later” will encourage debt and unhealthy heating, while costing hard-up customers more in the long run.
Dominic Arnall, chief executive of the charity Just Like Us, said: “Even as a plot for a dystopian novel, food on hire purchase would be laughably ghoulish.”
Meanwhile, Twitter users slammed the move, with one writing: “I don’t know who needs to hear this but if you haven’t got the money for a takeaway, you really shouldn’t be making your struggles worse with Klarna“
Another chimed in: “What stage of normalising food poverty are we at now?”
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Other concerns have included the effect of BNPL on users credit scores and a lack of customer protection.
BNPL companies are not yet regulated and so consumers do not have the same legal protections as using credit cards if there are any payment issues.
Likewise, any complaints cannot be taken to the independent financial ombudsman as they can with a bank or credit card provider.
Instead, issues have to be worked out with the individual company.
It’s also important to note that takeaways are often more expensive from delivery services, due to added fees and restaurant mark-ups.
The BNPL options aren’t yet available on grocery deliveries.
Klarna insists it does not affect a customer’s credit score, but information such as payment holidays and existing, late and unpaid balances is visible on your credit file to other lenders.
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.”
While a spokesperson for Clearpay said its services aren’t available on the Deliveroo and Just Eat websites.
It added that it offers gift cards with a third-party supplier, but that these are only available to members who’ve “demonstrated responsible payment behaviour”.
Carlo Mocci, chief business officer at Deliveroo, said: “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.”
