Mumbai: Vivek Krishna, 32, a consultant in an audit company in Mumbai, orders lunch almost five days a week. “I stay alone in Mumbai and don’t find the time to cook. I order food in office almost every day. I find it convenient,” said Krishna. Like Krishna, how many times do you order food online? With the rise in number of online food ordering and delivery apps such as Swiggy, Foodpanda, FreshMenu Coupons and Zomato in metro cities such as Mumbai, Delhi and Bengaluru, most people order online.

According to Redseer, almost 76% of the online food delivery is done by third-party companies. “Consumers are getting comfortable with online services. We expect the online food ordering apps to take up more share of the delivery spend of consumers,” states the report.

Taking note of the trend, fintech companies such as PayU, EPaylater and Simpl offer credit to customers who order online. Here’s how it works:

Option to delay payment

If you want to order food online, but don’t have enough money in your bank account, the companies allow you to order food without paying money immediately. PayU, Simpl and ePayLater offer credit on online food ordering apps and restaurants such as Swiggy, Zomato, FreshMenu, Faasos, Box8, Foodpanda, Holachef, Behrouz, Mojopizza, Scootsy and Chaipoint. To use the service, you have to download the fintech app that offers credit option. You have to provide your identity proofs to register yourself. Once registered, you can start using it. The process is similar to other payment options. All food delivery companies and restaurants that have tie-ups with these fintech startups will provide the pay later, along with debit card, credit card, netbanking and wallet option. When you click on pay later, you get 15 days to repay. If you cross the due date, you will be either charged a flat fee of Rs250 as penalty or 3% a month for the days the amount stays overdue on a pro rata basis.

Should you delay paying for food?

Most financial institutions want to offer convenience to customers, especially those who don’t have a credit card. Remember, convenience comes at a price. There are three things that you should remember before going for this option—check charges, impact on credit history and privacy. If you don’t repay in time, you will have to pay interest on the amount and a penalty.

Any kind of default can have a negative impact on your credit score, as your credit behavior will be reported to credit bureau companies such as Cibil. A negative score can impact your future loan capability. There is a possibility that your data might be used to understand your spending pattern. So remember to check the data privacy policy.

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