Americans Turning to ‘Buy Now, Pay Later’ for Groceries Amid Rising Costs

Rising grocery prices are pushing more Americans to use “Buy Now, Pay Later” (BNPL) services to afford food, according to a LendingTree survey. Once used primarily for discretionary spending, BNPL loans—offered by companies like Klarna and PayPal—are now being used by 25% of users for grocery purchases, up from 14% the previous year. Gen Z leads this shift, with 33% using BNPL for essentials. While the services allow users to break payments into interest-free installments, they come with risks: 41% of users reported making late payments, and nearly a quarter juggle three or more active BNPL loans. Financial experts warn that using BNPL for necessities could signal deeper financial distress. Klarna’s new partnership with DoorDash further extends BNPL’s reach into everyday life, raising ethical questions about debt normalization in a struggling economy.

Source: BET

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