Alex Marsh, Klarna’s UK chief has sprung to the company’s tie up with Deliveroo after the deal sparked controversy with debt campaigners claiming the deal with put already-struggling British consumers into further debt.
The two firms inked a deal last week which allows customers to spread the cost of takeaways across three, interest-free instalments.
However many believe the deal is dangerous and will help to destabilise customers’ financial health at a time when the cost-of-living soars.
Marsh however hit back at critics of the deal, saying it poses less of a threat still than traditional credit cards.
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“Critics argue that it is ‘inappropriate’ to pay for food or in this case a takeaway on BNPL. That if you can’t afford to pay for it outright, you should settle for a baked potato and get back in your box. How dare they?” he said in comments shared with City AM.
“If you’re on a tight budget and decide to put on a treat for the family, why should your only option be a high interest credit card?”
Marsh pointed out that “most people, most of the time” know how to spend their monthly budget wisely, and with guardrails in place there is less of a threat than traditional credit providers.
Sue Anderson, head of media at Stepchange described Klarna’s deal with Deliveroo last week as “a worrying development” at a time of “such financial uncertainty for households.”
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