Why are Americans using 'buy now, pay later' apps to buy groceries?

A 'layaway program, but reversed'

overhead photo of a phone with a screen that reads "your order has been confirmed" and a box of groceries in the background
Groceries are just one of the items consumers are having delivered without paying upfront
(Image credit: d3sign / Getty Images)

Credit cards are so old-fashioned. Americans are increasingly turning to "buy now, pay later" (BNPL) apps to pay for groceries and takeout, and some experts warn the trend could lead to a rise in consumer debt.

Apps like Klarna, Affirm and Afterpay are a "modern-day layaway program but reversed," said NewsNation. Layaway programs would let consumers make installment payments in advance, taking an item home only after it was fully paid for. BNPL apps let buyers get what they want "upfront for a small deposit." One new poll found 55% of Americans use the apps. Another survey found a quarter of users pay for groceries using the apps. Is doing so wise? You could pay off a shampoo purchase with a BNPL app, said NerdWallet's Sara Rathner, "but just because you can doesn't mean you necessarily should."

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Joel Mathis, The Week US

Joel Mathis is a writer with 30 years of newspaper and online journalism experience. His work also regularly appears in National Geographic and The Kansas City Star. His awards include best online commentary at the Online News Association and (twice) at the City and Regional Magazine Association.