HONOLULU (KHON2) — It used to be that people turned to credit cards or payday loans when money got tight. Now, more shoppers are using buy now, pay later (BNPL) apps to cover everyday costs like groceries.
These services let you split a purchase into smaller payments, usually without interest. At first, this might sound like a good deal. But what happens when you’re still paying off last week’s groceries when it’s time to shop again for this week?
A growing number of Americans, especially younger adults, are finding themselves in that cycle. In April 2025, a new report found that one in four BNPL users said they’ve used it to buy groceries. That’s up from 14% only one year ago.
For Gen Z users, the number jumps to one-third.
If you’re considering using buy now, pay later to put food on the table, here are the top things you need to know.
1. Buy now, pay later splits up your purchase
BNPL plans work like a short-term loan. At checkout, you might see an option to break your total into four equal payments, with the first one due right away. The rest are due every two weeks. Most plans don’t charge interest if you pay on time, but missing a payment can trigger fees.
Some providers also offer longer-term loans, but these might come with interest that’s sometimes as high as 36% APR.
2. Groceries are now one of the most common BNPL purchases
According to the report, groceries are the fourth most popular item people buy using BNPL. That’s behind clothing, tech devices and home goods. Services like DoorDash now let customers split food delivery bills into four interest-free payments. Stores like Walmart, Albertsons and Safeway also accept BNPL through cards like CareCredit.
With food prices rising up 0.5% in both January and March, these installment payments may seem like the only way to manage. But this isn’t about one trip to the store. It’s becoming part of how people shop every week.
3. You might be spending more than you think
Here’s the catch: because you’re not paying the full amount up front, it can feel like you’re spending less than you are. If you pay $25 today instead of $100, you might think you can afford to buy more.
But those payments pile up. And if you use BNPL for groceries every week, you could be making multiple payments at once for food you already ate.
4. Missing payments can lead to fees and debt collectors
Most BNPL providers charge late fees if you miss a payment. These can range from $2 to $15 and can sometimes go as high as 25% of your purchase amount. In the survey, more than 41% of users said they had made a late payment in the last year. That’s up 34% from the year before.
If you fall too far behind, your debt could be sent to a collections agency, which may report it to credit bureaus and hurt your credit score.
5. BNPL doesn’t usually help build your credit
While it may feel like a responsible way to manage money, BNPL payments usually don’t show up on your credit report, at least not the ones that use the “pay-in-four” model. That means even if you make every payment on time, it likely won’t improve your credit score.
However, if you stop paying altogether, the debt can still be reported. So, it’s a risk without much reward in terms of building your credit.
6. It’s easy to get approved, even if you have bad credit
BNPL apps perform a soft credit check, which won’t affect your score. That’s one reason why they’re so popular amongst people with subprime credit.
According to a 2025 report from the Consumer Financial Protection Bureau, many BNPL users already carry high levels of debt on credit cards or other loans.
If you’re already struggling financially, using BNPL for food may add more pressure in the long run.
7. These apps are designed to be fast and tempting
It only takes a few clicks to get started with BNPL. Most apps ask for basic personal information, then approve you within seconds. That speed makes it easier to say yes, even if you’re unsure whether you can handle the payments later.
That’s part of the design. BNPL providers make money from retailers, who are happy to close a sale. But they can also collect fees and interest from customers when payments are missed or delayed.
8. BNPL may help in a pinch, but it’s not a long-term solution
Using BNPL once in an emergency is different from relying on it every week. If you’re finding it hard to afford basics like groceries, it may be time to look at other options: food assistance programs, local food banks or budgeting tools that don’t involve taking on debt.
If you do use BNPL, try to:
- Stick with interest-free plans only.
- Avoid borrowing for anything you don’t need.
- Set reminders for your payment dates.
- Use it for one-time purchases you can afford to repay, not regular expenses.
9. Think before you click “buy now”
In today’s economy, it’s no surprise people are looking for ways to stretch their dollars. BNPL can seem like a lifeline. But it’s a loan, and loans come with risks.
You can click here to read the full report.
Before using it for your next food purchase, ask yourself: Will I still be paying for this when I need to buy groceries again?