Particle.news
Download on the App Store
5 ARTICLES
·
10h 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.

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

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.