More Americans Are Using Buy Now, Pay Later for Groceries, Here‘s Why (and the Risks You Should Know)
More Americans Are Using Buy Now, Pay Later for Groceries, Here‘s Why (and the Risks You Should Know)
Financing Your Grocery Cart: The Rise of Buy Now, Pay Later for Everyday Food
You know that feeling when you’re standing in the checkout line, watching the total climb higher than you expected?
Eggs are still expensive. Bread somehow costs more than it did last month. And by the time you swipe your card, you‘re doing mental math about whether this week’s grocery run is going to throw off the rest of your budget.
If that sounds familiar, you‘re not alone. And increasingly, Americans are reaching for a tool that used to be reserved for bigger splurges, like a new TV or a vacation wardrobe, to cover something far more basic: putting food on the table.
I’m talking about buy now, pay later services. You know the ones, Klarna, Afterpay, Affirm, PayPal‘s Pay in 4. And according to new data, they’re showing up in grocery carts a whole lot more often than they used to.
So let‘s talk about what’s really going on here, the numbers, the reasons behind them, and whether financing your groceries is a smart move or a slippery slope.
The Numbers Don’t Lie, BNPL Grocery Use Is Surging
A few years ago, the idea of paying for a gallon of milk in four installments would‘ve sounded… a little absurd. But times change. And so do how we pay for the basics.
From Niche to Necessity: Key Statistics
According to recent surveys from LendingTree, 25% of buy now, pay later users say they’ve used these services to cover grocery purchases. That‘s a sharp jump from just 14% a year earlier, and 21% in 2023. Among all BNPL users, nearly a third (29%) say they’ve used it for groceries, with some surveys placing the figure as high as four in ten Americans.
Groceries now rank as the fourth most common BNPL purchase category, sitting right behind clothing, electronics, and home goods.
And the broader BNPL market? It‘s exploding. Annual U.S. BNPL spending is projected to hit nearly $117 billion in 2025, roughly double what it was in 2022 and seven times the 2020 figure. That’s not a trend; that‘s a fundamental shift in how Americans manage everyday cash flow.
Who’s Using BNPL for Food?
The numbers get even more interesting when you break them down by demographic.
Gen Z is leading the charge. Around 38% of Gen Z BNPL users say they‘ve financed groceries this way, the highest of any generation. It makes sense: younger consumers are more comfortable with digital-first financial tools, and many have never owned a traditional credit card.
Parents with kids under 18 are also heavy users. More than six in ten say they couldn’t make ends meet without BNPL.
And while you might assume this is purely a low-income phenomenon, the data says otherwise. BNPL adoption has grown across all income levels, though usage does trend higher among lower-income households, likely as a way to avoid credit card debt or interest charges. Interestingly, high-income borrowers are among the most likely to pay late, according to LendingTree, which suggests that even households with solid earnings are feeling the squeeze.
Why Are Americans Financing Their Groceries?
So what‘s driving this? It’s not like people suddenly want to take out tiny loans for cereal and chicken thighs. The answer sits at the intersection of economics, psychology, and plain old survival.
Inflation and Stubbornly High Food Prices
Let‘s start with the obvious culprit. Between 2020 and 2024, the U.S. food-at-home Consumer Price Index rose 23.6%, that’s higher than overall inflation during the same period. And while overall inflation has cooled somewhat, grocery prices haven‘t exactly come back down. The cost of staples like eggs, bread, and milk keeps climbing month after month.
Nearly 60% of Americans now spend more than $150 a week on groceries, and one in four drops over $250 weekly. That’s real money, money that many families just don‘t have sitting in their checking account on any given Tuesday.
When LendingTree’s chief credit analyst Matt Schulz talked about the trend, he didn‘t mince words: “A lot of people are struggling and looking for ways to extend their budget.” He pointed to inflation, high interest rates, and uncertainty around tariffs as the triple-threat driving this behavior.
When Paycheck-to-Paycheck Living Meets “Frictionless” Payments
There’s another piece here, though, and it‘s more psychological.
BNPL is… easy. Like, dangerously easy. You‘re at checkout, you see a button that says “Pay in 4 installments of $25,” and suddenly a $100 grocery bill feels a lot more manageable. The payment is split across weeks, often with zero interest if you pay on time. No credit check. No paperwork. Just a couple taps.
According to research from NMI, half of U.S. adults say they shop more frequently when payments feel seamless, and 52% say perks like BNPL make them shop online more often. That frictionless experience is a double-edged sword. It removes the pain of paying upfront, but it also removes the moment of pause that might make you ask: Can I actually afford this?
And for many households, BNPL isn’t about convenience anymore. One in three users say it serves as a “bridge” from one paycheck to the next.
The Hidden Risks of Putting Dinner on a Payment Plan
Here‘s where things get a little uncomfortable. Because while BNPL can feel like a lifeline, it comes with some real strings attached, strings that are easy to overlook when you’re just trying to get through the week.
Late Payments Are Climbing Fast
The most alarming stat in all of this? 41% of BNPL users say they‘ve made a late payment in the past year — up from 34% the year before. That’s not a small uptick; it‘s a meaningful jump.
And while most late payments are just a few days overdue, they can trigger fees that add up quickly. Worse, missing payments can eventually impact your credit score, especially as major credit bureaus and scoring models like FICO start incorporating BNPL activity more formally.
Matt Schulz from LendingTree put it bluntly: “When nearly half of users say they’ve paid late, it shows how thin many households‘ margins are right now.”
The Debt Spiral: Multiple Loans, Multiple Problems
Another red flag? People aren’t just using BNPL once in a while. According to LendingTree, 60% of BNPL users have multiple loans open at the same time. And because BNPL providers typically don‘t share data with each other the way credit card issuers do, it’s shockingly easy to stack loans across Klarna, Afterpay, Affirm, and PayPal without anyone, including you, having a full picture of what you owe.
Each individual payment might feel small. $30 here. $25 there. But when you‘ve got four or five of those cycling through different pay periods, the cumulative effect can wreck a budget that was already tight.
And here’s the kicker: using BNPL for essential, recurring purchases, like groceries, makes you more likely to pay interest or fees. PYMNTS Intelligence found that 32% of users financing essentials paid interest, compared to 25% of those using BNPL only for discretionary items.
Regulation Is Playing Catch-Up
For a long time, BNPL operated in something of a regulatory gray zone. These services weren‘t subject to the same disclosure requirements, fee limits, or consumer protections that govern traditional credit cards.
That’s starting to change, but slowly. New York State recently announced first-in-the-nation regulations that will require BNPL providers to be licensed, cap fees, ensure transparent loan terms, and protect consumer data. The UK is rolling out similar safeguards, requiring affordability checks before lending.
Still, for most Americans right now, BNPL remains a tool with fewer guardrails than a credit card. And when you‘re using it to finance something as essential as food, that’s a gap worth paying attention to.
So… Should You Use BNPL for Groceries?
Okay, so we‘ve covered the trend and the risks. But let’s get practical for a minute. You might be reading this thinking, “Great, but what am I supposed to do? My grocery bill is still due, and my paycheck is still a week away.”
Fair question. Here‘s how to think about it.
When BNPL Might Make Sense
I’m not here to tell you BNPL is inherently evil. It‘s a tool, and like any tool, it can be used wisely or recklessly.
BNPL might make sense for groceries if:
- You have a specific, one-time cash flow gap and you know exactly when money is coming in to cover the payments
- You’re using it strategically — not habitually, and you‘ve set calendar reminders for every due date
- You’re sticking to one provider so you can see all your obligations in a single place
- The alternative is putting groceries on a high-interest credit card you won‘t pay off immediately
Financial experts generally recommend: avoid opening multiple BNPL loans in a single pay period, stick to one provider to track obligations, and treat BNPL like a serious financial commitment, not just a few taps at checkout.
Smarter Alternatives Worth Exploring
If you find yourself reaching for BNPL for groceries more than once in a blue moon, that‘s probably a signal that something deeper needs adjusting. Here are some alternatives worth considering before you tap that “Pay in 4” button:
- SNAP and food assistance programs. These exist for a reason. If you qualify, they provide sustainable support without accumulating debt.
- Local food banks and community pantries. Many people assume these are only for extreme situations. They’re not. They‘re for anyone struggling to put food on the table.
- Adjusting your grocery strategy. Meal planning, buying in bulk, using cashback apps, and shopping sales more aggressively can stretch your food budget without adding debt.
- Building even a tiny emergency buffer. I know, easier said than done. But even $50 set aside in a separate account can mean the difference between swiping BNPL and paying outright when a grocery week goes sideways.
- Credit counseling. If you’re regularly struggling to cover basics, talking to a nonprofit credit counselor can help you see the full picture and build a plan.
What Comes Next for BNPL and Grocery Shopping
So where is all this headed? A few trends are worth watching.
More Grocers Are Adding BNPL Options
The retailers are paying attention. Albertsons (and its family of stores, including Safeway and Vons) now accept BNPL. DoorDash recently partnered with Klarna to let customers finance grocery deliveries and takeout. Sezzle has partnered with regional grocery chains.
As more grocers integrate BNPL into checkout, usage will likely keep climbing, for better or worse.
What Regulators and Economists Are Watching
Regulators are finally catching up, but the question is whether new rules will meaningfully change consumer behavior or simply add paperwork. The CFPB has flagged concerns about BNPL users having riskier credit profiles and taking on multiple loans simultaneously. Federal Reserve research shows nearly one in four BNPL users were late on payments in 2024, up from 18% the prior year.
Meanwhile, economists are split on whether this trend signals a looming recession or just reflects a new normal in household cash management. What‘s clear is that when people are financing essentials like groceries, rent (13% of BNPL users), and medical bills (15%), the financial stress is real, and it’s widespread.
Here‘s the thing: BNPL didn’t create the problem of expensive groceries. It just made the problem feel more manageable for a couple of weeks. And sometimes, in the short term, that‘s enough.
But if you’re finding yourself reaching for installment plans just to keep your fridge stocked week after week, it‘s worth pausing to ask: Is this actually helping me get ahead, or is it just helping me get by?
There‘s no shame in using the tools available to you. Life is expensive right now. Groceries are expensive right now. You’re doing your best, and that‘s enough.
But the most powerful thing you can do is stay aware. Know what you’re signing up for. Track what you owe. And when possible, look for solutions that don‘t kick the can down the road.
I’d love to hear from you: Have you used BNPL for groceries? How did it work out for you, did it help you bridge a gap, or did you find yourself tangled in payments later? Drop a comment below and share your experience. (And if you found this article helpful, feel free to share it with someone who might be feeling the grocery squeeze too.)
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