A rising number of Americans are turning to buy now, pay later (BNPL) loans for essential purchases like groceries, driven by ongoing economic pressures such as inflation, high-interest rates, and tariff uncertainties. Recent data from Lending Tree reveals that around 50% of surveyed U.S. consumers aged 18 to 79 have utilized BNPL services, with 25% spending these loans on groceries—up from 14% in 2024 and 21% in 2023. Concurrently, late payments on BNPL loans have increased, with 41% of respondents reporting a late payment within the past year, up from 34% the previous year.
Matt Schulz, Lending Tree’s chief consumer finance analyst, noted that many consumers are struggling to manage their budgets amidst financial instability. He suggested that while BNPL loans can offer interest-free solutions, they carry risks such as high late fees, especially for those juggling multiple loans—60% of BNPL users reported having more than one loan, and nearly a quarter held three or more simultaneously.
Schulz emphasized the importance of cautious usage of BNPL loans, highlighting that they can be beneficial but also pose significant risks if mismanaged. This trend in BNPL use coincides with other indicators of economic stress, such as Coachella attendees financing their tickets through these loans and DoorDash’s acceptance of BNPL for food deliveries.
While consumers have previously weathered economic challenges relatively well due to a strong job market and wage growth, significant retailers like Walmart and Delta Airlines have indicated a shift in demand, suggesting potential worsening economic conditions in the near term.
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