BNPL Use for Essentials Jumps as 47% of Users Report Late Payments

3 articles · Updated · CNBC · Jul 14

$157 billion in BNPL credit was originated in 2025, up from nearly $116 billion in 2024, as consumers increasingly used installment loans for groceries, rent, car repairs and medical bills.
44% of Americans expect to apply for a BNPL loan in the next six months, while many borrowers are turning to the products after maxing out credit cards amid inflation and higher living costs.
47% of BNPL users said they paid late in the past year, up from 34% in 2024, raising concerns that short-term borrowing is trapping households in repeat debt cycles.
Interest-bearing installment loans now make up more than 37% of annual BNPL issuance—nearly double 2021's share—and some products can carry fees and effective costs comparable to payday loans.
Industry groups say pay-over-time plans offer transparent flexibility during an affordability crunch, but consumer advocates warn the shift from discretionary spending to essentials signals deeper household financial stress.

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"Buy Now, Pay Later" loans have been on the rise as consumers look help manage the rising cost of daily basic expenses. New data now show a growing number of borrowers are falling behind. CNBC’s ...

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BNPL in 2026: Essential Spending Surges, 47% of Users Report Late Payments Amid Regulatory Crackdown

Overview

By mid-2026, Buy Now, Pay Later (BNPL) services have seen a sharp rise in use for essential purchases, especially everyday necessities like groceries. This shift is driven by the speed and ease of approval at checkout, making it easier for consumers to rely on installment payments for daily expenses. As a result, average monthly spending by BNPL users jumped nearly 21% from 2024 to 2025. However, this growing dependence on BNPL has also led to a troubling increase in late payments, highlighting both the convenience and the risks associated with this payment method.

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