Consumers turn to buy now, pay later for essential expenses — with growing risks

Consumers are increasingly using buy now, pay later (BNPL) for essential expenses such as groceries, rent, and utilities. However, the article notes that more BNPL users have recently made late payments, signaling worsening repayment behavior. While no specific delinquency or dollar figures are provided, the shift toward essentials combined with higher lateness adds modest credit risk and reinforces a cautious outlook for BNPL providers.

Analysis

Consumers are increasingly using buy now, pay later (BNPL) for essential expenses such as groceries, rent, and utilities. However, the article notes that more BNPL users have recently made late payments, signaling worsening repayment behavior. While no specific delinquency or dollar figures are provided, the shift toward essentials combined with higher lateness adds modest credit risk and reinforces a cautious outlook for BNPL providers.