Eat Now, Pay Later: Americans are going into debt for food

Eat Now, Pay Later: Americans are going into debt for food

Amid rising inflation, Americans are increasingly using the option of paying later through finance apps.

Stubborn inflation is resulting in the rise of the popularity of Buy Now, Pay Later services in the US.

BNPL is designed to help consumers pay out purchases over three or six months.

BNPL loans allow users to pay for groceries among other items like sneakers, electronics and luxury goods in installments.

As the industry is racking up customers, delinquencies are moving up at a fast pace.

Americans took out roughly $24.2 billion in loans on buy now, pay later programs in 2021, up from only $2 billion in 2019.

According to a survey, about two-thirds of consumers were worried in August about affording groceries due to the rise in prices.

Food costs increased 1.1% in July, bringing the year-over-year gain to 10.9%.