As inflation continues to strain household budgets, a growing number of Americans are resorting to Buy Now, Pay Later (BNPL) services to cover grocery costs, according to multiple reports.
This trend highlights the financial pressures many face amid rising food prices and economic uncertainty.
A recent article by CNBC notes that BNPL services, traditionally used for discretionary purchases like electronics or clothing, are increasingly being used for necessities like groceries.
Companies such as Affirm, Klarna, and Afterpay have seen a spike in users opting for short-term loans to manage weekly food shopping.
The article cites data from Adobe Analytics, which found that BNPL transactions for groceries rose by 40% year-over-year in 2024, reflecting a shift in consumer behavior driven by economic challenges.
The Wall Street Journal corroborates this trend, reporting that grocery chains like Kroger and Walmart have partnered with BNPL providers to offer installment payment options at checkout.
The report highlights that low- and middle-income households, in particular, are turning to these services as a way to spread out the cost of essentials without relying on credit cards, which often carry higher interest rates.
According to a Bloomberg article, the rise in BNPL usage for groceries comes as food inflation remains stubbornly high, with grocery prices up 3.2% from the previous year.
For many Americans, stagnant wages and increased living costs have made it difficult to absorb these price hikes.
The article quotes a financial analyst who warns that while BNPL can provide temporary relief, it risks creating a cycle of debt for consumers who struggle to repay even small loans.
NPR adds a human perspective, sharing stories of families using BNPL to afford basic groceries.
One interviewee, a single mother in Ohio, described using Klarna to split a $60 grocery bill into four payments, noting that it allowed her to feed her children without skipping other bills.
However, NPR also points out the potential downsides, such as late fees and the ease of accumulating multiple BNPL loans, which can quickly become unmanageable.
Reuters reports that BNPL providers are actively marketing their services as a budgeting tool for everyday purchases, with some offering promotions specifically for grocery shopping.
However, regulators are taking notice. The Consumer Financial Protection Bureau (CFPB) has expressed concerns about the lack of transparency in BNPL agreements and the potential for consumers to overextend themselves.
The CFPB is reportedly considering new rules to ensure clearer disclosures and protections, as mentioned in the Reuters piece.
