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'Buy now, pay later' credit platform Klarna can be used for food. Alamy Stock Photo

Deliveroo and Klarna: Debt advisor Mabs urges people not to 'eat now, pay later'

Deferred payments and instalment plans are available to buy food. A budgeting expert is warning consumers: don’t do it.

EAT NOW, PAY later? 

That’s the offer from Deliveroo, which is allowing deferred payments and instalment plans for takeaway food and grocery deliveries – but problem debt agency Mabs is urging people not to buy food on such credit.

Deliveroo, a popular delivery app partnered with hundreds of food businesses in Ireland, gives customers the option to pay using the Swedish ‘buy now, pay later’ firm, Klarna – which many cash-strapped younger consumers will already be familiar with as a tempting, interest-free option when buying clothes or electronics online.

Michael Laffey of Mabs, the Money Advice and Budgeting Service, said: “Our advice to consumers would be not to use it for food.”

While Klarna credit is interest-free, missed payments can incur fees and unpaid debts may result in debt collectors being engaged, according to its Irish website.

There has been growing international attention in recent weeks to the risks posed by ‘buy now, pay later’ food deliveries, after DoorDash – which dominates the US food delivery market – announced its own partnership with Klarna. Doordash is not available in Ireland. 

Concerns have been raised that the link-up is a canary in the coal mine of America’s increasingly debt-ridden economy, or even a recession indicator. Klarna has defended the use of credit to buy food in response to the criticism.

Here in Ireland too, people are borrowing more money than ever, with both the volume and value of personal loans increasing last year, the banks revealed last week.

Klarna does not perform the credit checks required by traditional lenders such as banks. The Journal was able to set up a credit plan and make a purchase within minutes, simply by uploading a selfie and an image of a driving licence.

Klarna reported this week a doubling of its net loss for the first quarter. This was partly due to the granting of share-based rewards, although the results also showed an increase in unpaid customer loans.

deliveroo-drivers-camden-street-dublin-ireland Deliveroo riders on Camden Street in Dublin. There are hundreds of food businesses on Deliveroo's Irish platform. Alamy Stock Photo Alamy Stock Photo

Repayments

Deliveroo told The Journal that “almost all” of its customers choose to pay in full at the point of purchase.

Klarna credit is available on orders above €35: either a 30-day deferred full payment or three instalments over 60 days. 

Mabs is warning clients at its money management education sessions of the dangers of using ‘buy now, pay later’ for any purchases. The risks highlighted include that consumers can easily find themselves with accumulated debts if they sign up to repayment plans for a number of different purchases.

This type of ‘credit stacking’ is commonplace among Irish ‘buy now, pay later’ users, who tend to be young and already accessing other forms of credit, according to research by the Central Bank of Ireland in 2023. 

Laffey, of Mabs, explained why using ‘buy now, pay later’ for food is a particularly bad idea.

“When buying something like clothes or shoes that have a lifespan, you have the benefit of them for a longer period,” Laffey said.

At the end of the day if you use ‘buy now, pay later’ on your Chinese, it’s gone after an hour – and you’re still paying for it on two or three payments afterwards.” 

“Say you’re going to pay for your shopping over three instalments, interest free – but you’re going to need to do your shopping next week. What are you going to do then? How are you going to fund that when you’re already still paying for last week’s shopping?” Laffey said.

Klarna defends product

Klarna defended its product this weekend as fair and transparent, adding that Irish households had, for decades, relied on credit cards for grocery shopping. It said that by contrast with credit cards, its loans incurred no interest or card fees, adding that it offered “friendly reminders” that made it easy to manage payments. 

Klarna said it performs a “soft credit check” on customers, only increasing the amount of credit available if consumers demonstrate healthy repayment behaviour, and shutting off credit if repayments are not made.

Groceries as well as takeaways are available on Deliveroo, with Centra, Spar, Marks & Spencer and Dublin grocery delivery firm Shuppa all signed up to the delivery app.

Sean Meagher, CEO of Shuppa, said that while the firm doesn’t offer Klarna itself, some customers – especially those buying a larger basket of goods or non-food items such as gifts – find “payment flexibility” useful.

“That’s part of the convenience marketplaces like Deliveroo offer,” Meaghar said.

He added that Deliveroo charges platform fees that are passed along in prices.

The Central Bank, which regulates ‘buy now, pay later’ services in Ireland, said it expects lenders to ensure terms and conditions are clear and transparent for customers.

The Central Bank’s research on ‘buy now, pay later’ in Ireland found phones, clothing, footwear and cosmetics were among the products purchased. Almost one in five said they wouldn’t have made the purchase if this form of credit was not available.

Over a third did not realise that ‘buy now, pay later’ was a form of credit.

Other grocery firms operating on Deliveroo have been contacted for comment.

The Mabs national helpline for anyone struggling with debt or money management is 0818 07 2000, open Monday to Friday from 9am to 8pm. The Mabs website is www.mabs.ie. 

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    Mute JoeJoe Kilbride
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    May 18th 2025, 3:30 PM

    Seems like the only ones the government feels responsible to is this Lowry group and not the general public

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    Mute thomas molloy
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    May 18th 2025, 7:17 PM

    @JoeJoe Kilbride: Elected politicians are supposed to interact. This is another case of the news media trying to create distrust of politicians as trust in the media is fast declining. They foster angst when normal essential political activity is boringly getting on with the job.

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    Mute JoeJoe Kilbride
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    May 18th 2025, 8:10 PM

    @thomas molloy: it would appear that this small group has greater access to cabinet members than their own colleagues on the backbenches.

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    Mute James Leahy
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    May 18th 2025, 3:30 PM

    The innocent face of that Troy lad .Must be a wonderful feeling to own all those properties in the midst of a housing crisis.

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    Mute James Leahy
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    May 18th 2025, 3:35 PM

    @John doe: doh! No.

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    Mute Joe Beirne
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    May 18th 2025, 3:36 PM

    @John doe: You should try it

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    Mute Jack Hayes
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    May 18th 2025, 3:42 PM

    @John doe: You can’t rent the space under bridges, pīg troll.

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    Mute Joe Beirne
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    May 18th 2025, 3:43 PM

    @John doe: You can prove nothing, you’re one of life’s wasters.

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    Mute Jp Cleary
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    May 18th 2025, 3:55 PM

    @James Leahy: Thought he had done the honourable thing and resigned a few years ago.

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    Mute Jp Cleary
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    May 18th 2025, 3:56 PM

    @James Leahy: And I see the migration minister is unaware as well…. are these lads up to speed at all.

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    Mute Joe Beirne
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    May 18th 2025, 4:22 PM

    @John doe: Thought that was your level of intelligence alright

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    Mute Tired Jim
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    May 18th 2025, 4:22 PM

    @John doe: indeed, investing in several properties is a wise career move

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    Mute Jb Walshe
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    May 18th 2025, 4:24 PM

    @Joe Beirne: I’d say he hasn’t got a pit to p155 in

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    Mute Joe Beirne
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    May 18th 2025, 5:01 PM

    @Jb Walshe: To be fair, the journal facilitated it cos it encourages engagement however negative. I’m all for a bit of craic and healthy debate but this lad or whatever he is should be permanently banned.

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    Mute Dominic Leleu
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    May 19th 2025, 4:48 AM

    @John doe: because you have a iq equal to your backside temperature.

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    Mute micheal gilsenan
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    May 18th 2025, 3:32 PM

    a proven corrupt political talking about corruption. only in Ireland

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    Mute Brian Hunt
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    May 18th 2025, 3:42 PM

    @micheal gilsenan: Expecting straight dealing from that shower of shysters, is the triumph of hope over experience!

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    Mute JoeJoe Kilbride
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    May 18th 2025, 3:42 PM

    @micheal gilsenan: no, not only Ireland, look at the states, corruption at a far grander scale than could ever happen here

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    Mute Brian D'Arcy
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    May 18th 2025, 3:35 PM

    Anyone with half a brain knew that as they signed up to a pact with Fibe Garl and Fianna Fáil that they’d have access to ministers which highlights the undemocratic process to cut opposition speaking time, backed by people who saud most other countries allow government politicians to ask questions, I’d suggest look at Westminster and seeing the complete waste of time that us, turning into a nothing but a free for all. Martin and Harris have attempting to destroy democracy on their C.V’s along with their other litany of failures.

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    Mute Gerry Campbell
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    May 18th 2025, 4:40 PM

    @Brian D’Arcy: It’s the death Nnell for independentants anyway …can’t be trusted anymore.

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    Mute Padraig O'Brien
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    May 18th 2025, 4:29 PM

    Sure a man that doesn’t know he owns houses wouldn’t know anything!

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    Mute Paul Byrne
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    May 18th 2025, 4:09 PM

    A joke

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    Mute Paul Byrne
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    May 18th 2025, 5:23 PM

    Ff are a joke their bank ruptured the country

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    Mute Jp Cleary
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    May 18th 2025, 6:33 PM

    @Paul Byrne: Do you think they actually giant fcuk

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    Mute Tracy Reddy
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    May 18th 2025, 3:49 PM

    How do all men stand by and allow total corruption? Gen X seem to be the only ones capable in this country and the rest of you are just a complete waste of space.

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    Mute Tracy Reddy
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    May 18th 2025, 9:36 PM

    @H Woo: Pull the other one it’s got bells on it

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    Mute J Ven
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    May 18th 2025, 4:03 PM

    Why are the comments for the City Weat Hotel closed? I know for a fact because i met people living there that they pay for a family of two children, an accommodated apartment with gym, swimming pool, all amenities for a five stars golf hotel that’s the city west for only €650 per month, they also work full time and get subsidised childcare, more than anyone would get. Where is the fairness in this? Refugee? That’s a five stars hotel turn to apartments and they get more disposable income than the rest of us. That’s why people are protesting.

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    Mute JoeJoe Kilbride
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    May 18th 2025, 8:34 PM

    @The Truth: always the lies to try to justify your agenda of hate

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    Mute Mary Wright
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    May 18th 2025, 7:41 PM

    Lowry will take down this Govt. He’ll bide his time. And make sure it happens. For his own satisfaction. He does not care about a single other person or entity except himself.

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    Mute Andrew Kenny
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    May 18th 2025, 6:56 PM

    Lowry is a corrupt wart.

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    Mute Kylie More-Rode - Ballyer Drag Queen
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    May 18th 2025, 8:28 PM

    Of course Lowry and co have access to Ministers – Lowry and Co ARE the government. This story’s narrative is to gaslight us into thinking they’re some kind of opposition.

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    Mute Jb Walshe
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    May 18th 2025, 8:09 PM

    Minister unaware…..hardly surprising news with the batch of incompetent fake politicians that we are unlucky enough to have to suffer

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    Mute Tired Jim
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    May 18th 2025, 4:23 PM

    Michael Lowry is awesome

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    Mute Matthew Gorman
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    May 18th 2025, 8:10 PM

    Up tipp.

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    Mute micheal duff
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    May 19th 2025, 1:27 AM

    Troy/Lowry dowery

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