


An increasing number of American consumers who take out “buy now, pay later” loans are using them to pay for groceries, according to a recent study from LendingTree.
Out of 980 respondents to an April LendingTree survey who had used BNPL loans, 25% said they used the loans to pay for groceries, compared to just 14% of respondents the year prior.
Gen Z consumers were the most likely to use the loans for groceries, with a third of BNPL loan users in that age group.
Groceries were the fourth-highest category of goods that people used BNPL loans to purchase, behind clothing and accessories; computers and gaming systems, and furniture and appliances.
“I don’t think there’s any question that it is at least a sign of how much people are struggling. If you’re living paycheck to paycheck and you’re on a tight budget and you have several of these loans out at one time, it can be very easy to get over your skis here,” LendingTree Chief Consumer Finance Analyst Matt Schulz told The New York Times.
LendingTree also found that 13% of respondents also used the loans for restaurants, and that 16% of respondents used BNPL loans for food delivery or takeout. For example, delivery app DoorDash announced a partnership with Klarna, which offers BNPL loans, in March.
Costco has also partnered with BNPL offerer Affirm to create payment plans for purchases of more than $500 online, as well as at select stores, according to International Supermarket News magazine.
PayPal was the most-used BNPL service in the LendingTree survey at 56%; followed by Klarna, Affirm and Afterpay tied for second with 38%.
Most BNPL loan applications do not require a thorough credit review. The loans generally allow little or no initial payment, with the balance to be paid in four or fewer installments. Many loans don’t charge interest but do charge late fees for missed payments.
Mr. Schulz expects the number of BNPL users to increase in the near term.
“There’s a lot of uncertainty around tariffs and other economic issues, and it’s all going to add up to a lot of people looking for ways to extend their budget however they can. For an awful lot of people, that’s going to mean leaning on buy now, pay later loans, for better or for worse,” Mr. Schulz told CNBC.
• Brad Matthews can be reached at bmatthews@washingtontimes.com.