More Americans Are Using 'Buy Now, Pay Later' for Groceries — And Falling Behind on Payments

A growing number of Americans are turning to "buy now, pay later" (BNPL) loans to afford everyday essentials like groceries — and many are struggling to keep up with the payments, according to a new survey from LendingTree.

The survey, released Friday, highlights rising financial stress among consumers facing a tough economy marked by persistent inflation, high interest rates, and growing uncertainty over international tariffs.

In a poll conducted between April 2-3 involving 2,000 U.S. consumers aged 18 to 79, LendingTree found that around half of the respondents had used BNPL services. Of those, 25% reported using BNPL loans specifically to purchase groceries — a sharp increase from 14% in 2024 and 21% in 2023.

At the same time, 41% of BNPL users admitted to making a late payment within the past year, a significant jump from 34% who said the same the year before.

Rising Dependence on Alternative Financing

Matt Schulz, chief consumer finance analyst at LendingTree, said the findings reflect a growing struggle among Americans to manage daily expenses amid stubbornly high costs.

"A lot of people are struggling and looking for ways to stretch their budgets," Schulz said. "Inflation remains an issue, interest rates are still high, and there's considerable uncertainty surrounding tariffs and broader economic challenges. It all adds up."

Schulz noted that while most late BNPL payments were delayed by no more than a week, the trend signals broader financial strain. He stopped short of declaring the trend a sign of an impending recession but warned that economic conditions are expected to worsen before they improve.

"I do think it’s going to get worse, at least in the short term," he said. "There’s not a lot of reason to expect these numbers to turn around quickly."

BNPL Loans: A Double-Edged Sword

BNPL loans, which allow shoppers to split purchases into smaller, typically interest-free installments, have exploded in popularity over the past few years. They are often viewed as a safer alternative to high-interest credit cards. However, consumers who miss payments can face steep fees, and juggling multiple BNPL loans can create financial instability.

According to the LendingTree survey, 60% of BNPL users reported having multiple loans at once, with nearly one-fourth saying they carried three or more simultaneously.

Schulz warned that while BNPL loans can be a helpful tool when used responsibly, they come with significant risks if mismanaged.

"It’s really important for people to tread carefully," he said. "While BNPL can bridge the gap between paychecks without the burden of interest, mismanaging multiple loans can quickly spiral into financial trouble."

Signs of Financial Cracks

The LendingTree report follows a string of recent indicators suggesting American consumers are feeling the squeeze.

Billboard recently reported that around 60% of general admission attendees at the Coachella music festival financed their tickets using BNPL loans, sparking fresh debate over how consumers are relying on debt to maintain lifestyles.

Meanwhile, delivery platform DoorDash announced it would begin accepting BNPL payments via Klarna, prompting widespread discussion — and concern — about Americans now financing everyday food deliveries like cheeseburgers and burritos.

Over the past few years, strong job growth and rising wages helped shield many households from the worst impacts of inflation. However, there are signs that the tide is turning. Earlier this year, major companies including Walmart and Delta Airlines warned that cracks were appearing in consumer demand, leading to lower-than-expected sales forecasts.

The broader concern is that while consumers have so far managed to weather the storm, the increasing reliance on short-term loans for basic necessities could be a warning sign that financial resilience is weakening.

As more Americans turn to BNPL services just to keep food on the table, experts urge caution. Without careful management, the short-term fix could turn into a long-term financial headache.