Growing Trend: BNPL Loans for Essential Purchases
A new LendingTree survey reveals a sharp increase in the number of Americans using Buy Now, Pay Later (BNPL) loans to purchase everyday essentials like groceries. As of April 2025, 25% of BNPL users reported financing grocery purchases — a significant rise from 14% in 2024.
Late Payments on the Rise
The survey, conducted with 2,000 U.S. consumers aged 18 to 79, also shows that 41% of BNPL users admitted to making a late payment in the past year. This marks an increase from 34% the previous year, signaling growing financial strain.
Economic Uncertainty Drives BNPL Usage
Persistent inflation, high interest rates, and global trade tensions are pushing many consumers to stretch their budgets. Matt Schulz, chief consumer finance analyst at LendingTree, explained that while BNPL loans can be helpful, they come with significant risks if mismanaged.
“A lot of people are struggling and looking for ways to extend their budgets,” said Schulz. “Inflation is still a problem. Interest rates remain high. There’s a lot of economic uncertainty, and consumers are trying to cope however they can.“
Schulz warned that although he stops short of calling these figures a recession signal, he does expect conditions to worsen before they improve.
Risks of Multiple BNPL Loans
While BNPL services often promote interest-free payments, they can carry high late fees and financial complications if users juggle too many at once. According to the survey:
- 60% of BNPL users reported having multiple loans simultaneously.
- Nearly 25% said they were managing three or more BNPL loans at once.
Schulz emphasized the need for caution:
“BNPL loans can help you bridge the gap between paychecks, but if mishandled, they can quickly become a financial burden. People should tread lightly.“
BNPL Beyond Groceries: Lifestyle Spending Under Scrutiny
The growing reliance on BNPL financing isn’t limited to groceries. Recently, it was reported that about 60% of Coachella concertgoers used BNPL options to pay for their general admission tickets, raising questions about Americans’ dependence on debt to sustain their lifestyles.
Adding to the conversation, DoorDash announced it would now accept BNPL payments via Klarna for food deliveries — sparking widespread commentary about the state of consumer finances.
Warning Signs From Major Companies
Although Americans have shown resilience against inflation over the past few years thanks to a strong job market and wage growth, warning signs are starting to appear. Major companies like Walmart and Delta Airlines have recently cited weakened consumer demand and issued lower sales forecasts, suggesting that financial stress is beginning to impact spending behaviors.
