nbcnews.com
BNPL Loan Usage for Groceries Rises Amid Economic Uncertainty
A LendingTree survey reveals that 25% of Americans used buy now, pay later services for groceries in 2025, up from 14% in 2024, with 41% reporting late payments, highlighting the financial strain caused by inflation and high interest rates.
- How do factors such as inflation, high interest rates, and economic uncertainty contribute to the growing trend of late BNPL loan payments?
- This surge in BNPL grocery purchases and late payments reflects a broader trend of consumers relying on short-term credit to manage essential expenses amid economic hardship. The rising use of multiple BNPL loans simultaneously (60% of users) further highlights this financial pressure.
- What is the significant impact of the rising use of buy now, pay later loans for essential expenses like groceries on the American consumer?
- The number of Americans using buy now, pay later (BNPL) loans for groceries increased to 25% in 2025 from 14% in 2024, while 41% of BNPL users made late payments in the past year. This indicates financial strain among consumers due to inflation, high interest rates, and economic uncertainty.
- What are the potential long-term economic implications of the increasing reliance on BNPL loans, particularly concerning consumer debt and financial stability?
- The increasing reliance on BNPL loans for necessities suggests potential long-term consequences, including increased consumer debt and financial instability. The current economic climate, characterized by inflation and high interest rates, exacerbates this issue, potentially leading to a further decline in consumer financial health unless economic conditions improve.
Cognitive Concepts
Framing Bias
The headline and introduction immediately establish a negative tone, focusing on the rising number of Americans using BNPL for groceries and experiencing late payments. This sets the stage for a predominantly negative portrayal of the trend, emphasizing the struggles of consumers rather than exploring the broader economic context or the functionality of BNPL itself. The repeated use of phrases like "cracking under the pressure" and "struggling" further reinforces this negative framing. While the article includes quotes from an analyst, the overall narrative prioritizes the alarming aspects of the data.
Language Bias
The article employs language that leans towards negativity, repeatedly emphasizing the struggles and difficulties faced by consumers using BNPL loans. Words and phrases such as "cracking under the pressure," "struggling," and "mismanaging" contribute to a sense of crisis and alarm. While these words accurately reflect the data presented, alternative phrasing could offer a more balanced perspective. For instance, instead of "cracking under the pressure," the article could use "facing financial challenges." Instead of "struggling," it could use "managing their finances with BNPL." The repeated use of negative language reinforces the overall negative framing of the article.
Bias by Omission
The article focuses heavily on the negative aspects of BNPL loans and their increasing use for essential expenses like groceries, but it omits discussion of potential benefits or alternative perspectives. While it mentions that BNPL loans can be a good interest-free tool, this is quickly overshadowed by warnings about late fees and mismanagement. The article also doesn't explore the reasons why people might choose BNPL over other financial options, such as credit cards, or the potential role of credit availability in shaping consumer choices. The omission of these factors results in a somewhat one-sided narrative.
False Dichotomy
The article doesn't explicitly present a false dichotomy, but it implicitly frames BNPL usage as inherently risky and problematic. By highlighting the negative consequences of late payments and multiple loans, it creates a sense that the only outcome of using BNPL is financial hardship. This ignores the fact that many people might use BNPL responsibly and benefit from its interest-free structure, at least in the short term.
Sustainable Development Goals
The increasing use of buy now, pay later (BNPL) loans for essential expenses like groceries indicates a decline in the financial stability of a segment of the population. This suggests a struggle to meet basic needs, which is directly related to SDG 1: No Poverty. The rise in late payments on these loans further underscores this financial strain and increased risk of falling into poverty.