A new survey from LendingTree has highlighted concerning trends in the use of BNPL services in the United States. More than 40% of BNPL users reported being late on a payment in the past year, a noticeable increase from 34% in 2024.
The study also reveals that more Americans are turning to BNPL for everyday expenses like groceries and takeout, not just for luxury items.
Go deeper with GlobalData
Increase in late payments
The survey found that 41% of BNPL users in the US paid late at least once during the past year, up from 34% the previous year.
Surprisingly, high-income earners, young people, and parents of young children were among the most likely to report missing payments.
However, most late payments were short-term, with 76% of users being late by a week or less, suggesting that while late payments are rising, they are generally brief.
Changing spending patterns
The report also showed that more consumers are using BNPL for everyday purchases. One in four BNPL users said they have used the service to buy groceries, up from 14% in 2024.
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By GlobalDataThe trend is especially noticeable among Gen Z, with 33% of younger BNPL users saying they’ve used the service for groceries. This shift could reflect the financial pressures of rising food prices, pushing people to rely more on BNPL for necessary purchases.
Food delivery is also gaining popularity, with 16% of BNPL users reporting that they have used the service for takeout or restaurant deliveries.
Misconceptions about credit scores
Despite BNPL’s growing use, there are widespread misconceptions about how these loans affect credit scores.
The survey revealed that 62% of BNPL users believe that paying on time will improve their credit score, a belief that is incorrect. Only 13% of respondents knew that BNPL loans do not impact their credit score.
This misunderstanding is most common among men, high-income earners, and younger Americans. Even among baby boomers, over half were unsure about the credit implications of BNPL loans.
As BNPL services continue to grow in popularity across the United States, it’s clear that many consumers are becoming more dependent on them. However, with rising late payments and confusion about how these loans work, it’s crucial for Americans to approach BNPL services with
