Survey reveals growing reliance on loans for grocery purchases among Americans
A recent survey reveals that approximately one-quarter of buy now, pay later (BNPL) users are relying on loans to fund their grocery purchases. Conducted by the online lending marketplace LendingTree, this study highlights an increasing trend...
TroibNews 
A recent survey reveals that approximately one-quarter of buy now, pay later (BNPL) users are relying on loans to fund their grocery purchases. Conducted by the online lending marketplace LendingTree, this study highlights an increasing trend in American consumers' reliance on BNPL services for their food expenses.
Analysts from LendingTree caution that this trend is expected to continue, emphasizing that the situation may not improve in the near future due to factors such as inflation, elevated interest rates, and rising concerns about tariffs.
The survey, carried out in early April among roughly 2,000 American consumers aged 18 to 70, found that about half of the respondents have utilized BNPL services. This short-term loan scheme has gained popularity lately because it allows consumers to break down purchases into smaller, more manageable payments. Furthermore, these loans typically do not accrue interest, and credit scores are often not considered.
However, the drawbacks of this financing option include the potential for high fees if payments are missed or if individuals take on multiple loans. Notably, 41% of BNPL users acknowledged that they had missed payments, an increase from 34% reported last year. Additionally, nearly a quarter of respondents indicated they had three or more active loans simultaneously. Despite this, a significant majority, around 62%, mistakenly believe that these loans positively impact their credit scores, while 26% expressed uncertainty regarding this matter.
The survey demonstrated a near doubling in the use of BNPL for grocery purchases, rising from 14% last year to 25% in the current findings. This trend has been particularly prevalent among Gen Z users, for whom groceries rank as the fourth most common BNPL expenditure.
According to LendingTree’s chief consumer finance analyst, Matt Schulz, the use of BNPL is likely to persist, and the patterns observed in the survey won't change shortly. He advised caution regarding the overuse of BNPL loans, framing them as “a really good interest-free tool,” but clarifying that there’s “a lot of risk in mismanaging it.”
“Inflation is still a problem. Interest rates are still really high. 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,” Schulz explained, suggesting that the challenges associated with these loans are poised to intensify.
Frederick R Cook for TROIB News
Analysts from LendingTree caution that this trend is expected to continue, emphasizing that the situation may not improve in the near future due to factors such as inflation, elevated interest rates, and rising concerns about tariffs.
The survey, carried out in early April among roughly 2,000 American consumers aged 18 to 70, found that about half of the respondents have utilized BNPL services. This short-term loan scheme has gained popularity lately because it allows consumers to break down purchases into smaller, more manageable payments. Furthermore, these loans typically do not accrue interest, and credit scores are often not considered.
However, the drawbacks of this financing option include the potential for high fees if payments are missed or if individuals take on multiple loans. Notably, 41% of BNPL users acknowledged that they had missed payments, an increase from 34% reported last year. Additionally, nearly a quarter of respondents indicated they had three or more active loans simultaneously. Despite this, a significant majority, around 62%, mistakenly believe that these loans positively impact their credit scores, while 26% expressed uncertainty regarding this matter.
The survey demonstrated a near doubling in the use of BNPL for grocery purchases, rising from 14% last year to 25% in the current findings. This trend has been particularly prevalent among Gen Z users, for whom groceries rank as the fourth most common BNPL expenditure.
According to LendingTree’s chief consumer finance analyst, Matt Schulz, the use of BNPL is likely to persist, and the patterns observed in the survey won't change shortly. He advised caution regarding the overuse of BNPL loans, framing them as “a really good interest-free tool,” but clarifying that there’s “a lot of risk in mismanaging it.”
“Inflation is still a problem. Interest rates are still really high. 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,” Schulz explained, suggesting that the challenges associated with these loans are poised to intensify.
Frederick R Cook for TROIB News
Find more stories on Business, Economy and Finance in TROIB business
