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4mo ago

Rising BNPL Use for Groceries Highlights Growing Financial Strain in U.S.

New data shows 25% of Americans now use buy now, pay later loans for groceries, with late payments also on the rise.

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Growing use of buy now, pay later services for essential purchases is correlated with increased concerns of a recession.
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Overview

  • A LendingTree survey reveals 25% of buy now, pay later (BNPL) users are financing groceries, up from 14% a year ago.
  • 41% of BNPL users reported making late payments in the past year, an increase from 34% in the prior year.
  • Persistent inflation, high interest rates, and economic uncertainty are driving Americans to rely on BNPL loans for basic expenses.
  • Delivery platform DoorDash has partnered with Klarna to offer BNPL options for grocery and takeout orders.
  • The BNPL sector, valued at $75 billion, faces scrutiny over rising late fees and consumer debt risks as regulators and merchants adapt.