Online takeaway giant Foodhub has criticised Deliveroo for partnering with Klarna, in a move that will see some customers pay for takeaway orders in instalments.

Foodhub bosses say there is “no place” for BNPL in the takeaway industry and that the scheme will plunge more Brits into debt, as millions battle the cost of living crisis.

CEO Ardian Mula said: “With the nation in the midst of a cost of living crisis, it’s ludicrous to launch a BNPL partnership that only serves to increase peoples’ debt.

“The partnership essentially encourages customers to pay for food that they cannot afford, which is both dangerous and highly irresponsible.

“There is no place for BNPL schemes within the takeaway industry, and as leaders within that industry, we should be caring for our customers – not plunging them into debt.

“These are difficult and unprecedented times, so let’s work to reduce the pressure consumers are under, rather than doing the opposite.

“For us at Foodhub, that means giving up some revenue in order to keep prices and costs low and affordable.

“We pride ourselves on being the cheapest platform with no service fees, which makes us, on average, 20% cheaper than competitor platforms.

“In light of Deliveroo’s new partnership with Klarna, it is becoming increasingly clear that not every company is willing to adopt this customer-conscious approach.”

The BNPL payment option allows Deliveroo customers to pay for their order over 30 days or, for orders of £30 or more, in three instalments over 60 days.