15m Americans, including high earners, turn to BNPL services for food purchases
As the grip of inflation tightens on the US economy, an increasing number of Americans, including those with annual incomes exceeding $100,000, are resorting to “buy now, pay later” (BNPL) apps for grocery shopping. A recent study by PYMNTS Intelligence reveals that 15 million people, or 6.5% of the US population, utilized BNPL services such as Affirm, Klarna, Afterpay, and PayPal to finance their grocery purchases last year. This trend underscores the growing appeal of BNPL plans, offering short-term loans with minimal interest, across various income levels in response to the escalating food prices.
The Federal Reserve Bank of New York’s research indicates that individuals with credit scores below 620 are particularly inclined towards using BNPL services, highlighting the financial strain experienced by consumers. Major retailers including Walmart, Amazon, and Trader Joe’s are now offering these point-of-sale instalment loans at checkout, expanding the accessibility of BNPL plans for everyday essentials.
Amid a 22.3% rise in food prices since February 2020, the BNPL phenomenon extends beyond groceries, with Gen Z shoppers leveraging these services for travel, household items, and even healthcare products like contact lenses and first-aid antiseptics. The surge in BNPL transactions underscores the challenges faced by consumers as they navigate the current economic landscape, seeking flexible payment solutions to manage their budgets effectively.
