25% of BNPL Users Now Use Loans for Groceries

A growing number of Americans are turning to Buy Now, Pay Later (BNPL) services to purchase everyday essentials like groceries, with 25% of BNPL users now using these loans for food shopping, up significantly from 14% a year ago. This trend is particularly pronounced among Gen Z, with one-third in that demographic relying on BNPL for groceries, reflecting rising supermarket prices and broader economic uncertainty. The shift from luxury to essential purchases highlights how BNPL is becoming a financial lifeline for those facing cash flow shortages or limited access to traditional credit. However, the convenience of BNPL comes with risks: over 40% of users reported making late payments in the past year, a sign of increasing financial strain and potential overspending. Businesses are responding, with companies like DoorDash partnering with BNPL providers to meet growing demand for flexible payment options. Experts warn that while BNPL can help bridge gaps in tough times, responsible use and awareness of the potential for accumulating debt are critical for long-term financial health.