Protect Borrowers said its new “A Loan In Every Cart” report and July 2-5 survey found BNPL is increasingly used for essentials, with 46% of users financing groceries and 33% covering rent or housing costs.
Half of BNPL borrowers missed a payment in the past year, the group said, and repeated small loans can pile up quickly—weekly grocery purchases financed with BNPL could trigger 12 payment requests in a month.
Late charges can make the loans as costly as high-APR payday credit: the report modeled $100 grocery loans producing effective APRs of 139% to 208% after $16 to $24 in fees over six weeks.
The report said BNPL is expanding beyond pay-in-four loans, with more than one-third of originations now interest-bearing and lenders moving into cards, bank accounts and AI-driven distribution.
Protect Borrowers called for a federal and state BNPL Borrower Bill of Rights and urged Congress to push the CFPB to more aggressively regulate nonbank lenders.
Will new regulations make 'buy now, pay later' safer, or just harder for struggling families to access?
Are all shoppers paying higher prices to cover the hidden costs of 'interest-free' payment plans?
The $157 Billion BNPL Crisis: Essentials, Debt Traps, and the Battle for Consumer Safeguards
Overview
Buy Now, Pay Later (BNPL) services have rapidly expanded, dramatically reshaping consumer credit. The volume of BNPL loans surged from nearly $116 billion in 2024 to almost $157 billion in 2025, showing a significant increase. This growth is matched by rising consumer reliance, with 44% of Americans planning to apply for a BNPL loan and 13% expecting to take out three or more loans in the next six months. These trends highlight a deepening dependence on BNPL as a short-term credit solution, raising concerns about financial stability and the human cost of this shift.