BNPL Grocery Use Rises, Late Payments Widespread

A recent Lending Tree survey of 2,000 U.S. consumers found that 25% of buy now, pay later (BNPL) users now use these loans for groceries, up from 14% a year ago, as Americans contend with persistent inflation, high interest rates, and tariff concerns. The same survey noted that 41% of BNPL users reported making a late payment in the past year, an increase from 34% previously. Financial stress is deepening across both lower- and higher-income groups, with late BNPL payments becoming more common. BNPL loans let consumers split purchases into installments as an alternative to high-interest credit cards, but missed payments can incur significant fees. Experts warn that growing dependence on BNPL for essentials like groceries may worsen before improving. Retailers and analysts expect continued consumer strain due to ongoing economic pressures.