Consumers Are Increasingly Turning To Buy-Now-Pay-Later Services For Groceries

A recent LendingTree survey, which found that nearly a quarter of consumers using buy-now-pay-later loans are now financing their grocery purchases, marking a significant increase from 14% a year ago. This shift is a departure from the traditional use of these short-term financing services for big-ticket items, and is now being used for everyday essentials including groceries, utility bills, and streaming services. The buy-now-pay-later market has experienced dramatic growth, expanding from $2 billion in consumer purchases in 2019 to over $116.3 billion by 2023. The rise in food prices, which have increased 28% since 2020, has created particular pressure on lower-income households, who represent the largest user base for these services.