Buy now, pay later (BNPL) services have surged, with nearly $157 billion in consumer credit products originated in 2025, up from $116 billion in 2024, as consumers increasingly rely on these options for essential purchases amid rising costs.
A LendingTree survey indicates that 44% of Americans plan to apply for a BNPL loan in the next six months, with a significant portion using these loans for necessities like groceries, rent, and medical expenses. However, the trend raises alarms about the risk of falling into a debt cycle, as 47% of BNPL users reported late payments in the past year, a notable increase from 34% in 2024.
Experts warn that late fees and high-interest rates associated with some BNPL plans can lead to financial strain comparable to payday loans. While industry advocates argue that BNPL offers consumers flexibility in managing expenses, the growing reliance on these services for basic needs amid inflation could signal deeper financial challenges for many households