Consumers Are Increasingly Turning To Buy-Now-Pay-Later Services For Groceries

Nearly a quarter of consumers using buy-now-pay-later loans now finance their grocery purchases, representing a significant increase from 14% a year ago, according to a recent LendingTree survey. The shift marks a departure from the traditional use of these short-term financing services for big-ticket items like electronics and furniture toward everyday essentials including groceries, utility bills, and streaming services. The BNPL market has experienced dramatic growth, expanding from $2 billion in consumer purchases in 2019 to more than $116.3 billion by 2023. Morgan Stanley found that 28% of surveyed Americans had used BNPL services with about 30% of those users applying the financing to grocery purchases. Food prices have risen 28% since 2020, creating particular pressure on lower-income households earning less than $50,000 annually, who represent the largest user base for these services.

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