A significant increase in Americans using buy now, pay later (BNPL) loans for grocery purchases has been reported, with recent LendingTree data highlighting a concerning trend of late payments. A survey conducted with 2,000 U.S. consumers aged 18 to 79 reveals that approximately half have utilized BNPL services, and 25% employed these loans for groceries—up from 14% in 2022 and 21% in 2023. Alarmingly, 41% of respondents admitted to having made a late payment on a BNPL loan in the past year, a rise from 34% the previous year.
LendingTree’s chief consumer finance analyst, Matt Schulz, noted that many consumers are struggling to manage their finances amidst persistent inflation, high interest rates, and economic uncertainty, which has led to an increased reliance on BNPL loans. While these loans allow for smaller, interest-free payments, they can impose high fees for late payments and can become risky if multiple loans are accumulated.
The survey showed that 60% of BNPL users have taken out multiple loans simultaneously, with nearly a fourth holding three or more. Schulz cautioned consumers to tread carefully with these loans to avoid potential mismanagement. These findings echo a broader economic discussion—Billboard reported that about 60% of general admission attendees at Coachella financed their tickets through BNPL, prompting debates on financial habits in today’s economy.
The job market had previously provided some stability, yet companies like Walmart and Delta Airlines have warned of decreasing demand and poorer sales forecasts, suggesting a potential downturn. Schulz speculated that conditions may worsen before improvements are seen.
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