In 2025, Buy Now, Pay Later (BNPL) services are no longer just for splurges on electronics or fashion. More Americans are now using BNPL loans to pay for essential expenses — including groceries.
Yes, groceries.
With inflation still putting pressure on everyday budgets, shoppers are turning to short-term installment loans just to keep the fridge stocked. But while it might help in the moment, this trend raises red flags about financial stability and long-term debt.
What’s Happening?
According to a recent LendingTree survey, 1 in 4 Americans (25%) have used a BNPL service to buy groceries. That’s a sharp jump from just 14% last year. And it’s not just groceries — people are using BNPL to cover utility bills, rent, and other essentials.
The growth is especially strong among younger shoppers:
- 64% of Gen Z have used BNPL at least once.
- By contrast, only 29% of Baby Boomers have used it.
Services like Affirm, Klarna, Afterpay, PayPal Credit, and Apple Pay Later are leading the way, offering shoppers the ability to split purchases into four payments, usually over six weeks — with no interest if payments are made on time.
Why Are People Using BNPL for Necessities?
The answer is simple: budgets are tight.
Wages haven’t kept pace with inflation, and many Americans are finding it harder to cover daily expenses. BNPL gives them temporary breathing room — but it’s not without risk.
The Downside: Missed Payments & Compounding Stress
Here’s where things get concerning:
- 41% of BNPL users missed a payment in the last 12 months.
- That’s up from 34% the year before.
Missed payments can lead to late fees, overdraft penalties, and damaged credit. And because these loans aren’t always reported to credit bureaus the same way as traditional loans, it can be harder to track their long-term impact.
Plus, users often juggle multiple BNPL plans:
- 71% of Gen Z users have more than one active BNPL loan.
- 26% of them have three or more active loans at once.
It’s easy to lose track of due dates, especially when each plan is tied to a different app or account.
Should You Use BNPL for Essentials?
If you’re in a financial pinch, BNPL might help in the short term — but using it for essentials like food and gas is a sign of deeper money problems.
Ask yourself:
- Can I repay all these installments on time?
- Would using a credit card with a low APR be safer?
- Should I speak with a financial advisor or nonprofit credit counselor?
Final Thought
Buy Now, Pay Later tools were built for convenience — but when they’re being used to buy milk and eggs, it’s time to take a closer look at the bigger picture. If you find yourself depending on BNPL just to make it through the month, it’s worth reevaluating your budget and exploring longer-term financial solutions.
Stay tuned to New Credit Finance as we continue tracking the rise of BNPL and what it means for your everyday money decisions.