Survey shows soaring food inflation is forcing more Americans to use “buy now, pay later” apps when shopping for groceries, with some earning six-figure incomes. It also includes shoppers who earn money.
Ann Analysis by PYMNTS Intelligence Last year, we found that 15 million people, or 6.5% of the U.S. population, reported using the “buy now, pay later” or BPNL app to pay for groceries.
According to the study, about 5.4% of people using apps from fintech services like Affirm, Klarna, Afterpay, and PayPal were low-income Americans.
The rest were people with annual incomes of $100,000 or more.
last month, Federal Reserve Bank of New York A study published last year found that people with credit scores below 620 were nearly three times more likely to use BNPL five or more times than financially stable consumers.
BNPL loans, also known as POS installment loans, are short-term loans with little or no interest and fixed payments.
These are offered at checkout by major retailers such as Walmart, Amazon, and Trader Joe’s.
A recent study by Afterpay found that Gen Z shoppers use BNPL to pay for travel and household items.
Afterpay reports that BNPL purchases of contact lenses last year increased by 465% compared to 2022, and the use of BNPL to purchase trash bags also increased by 182%.
According to Afterpay research, Gen Z shoppers purchased 98% more emergency disinfectant with BNPL last year compared to the year before. Quoted by NBC News.
Postpaid spending plans such as lighter fluid, laptop parts, and medications to treat snoring and sleep apnea all increased by 300%.
Since February 2020, consumer inflation has increased by 20% and food prices have increased by 22.3%.
The federal government released data last week showing the consumer price index rose 0.4% in February.
CPI rose 3.2% in February compared to the same period last year.
There are signs that food inflation is starting to subside.
Grocery costs were flat in February, but rose 0.4% in January from the previous month.
In January, it was up 1% compared to the same period last year.
However, the prices of some food items continue to rise.
Frozen juices and beverages were up 27.2% year over year in February and up 9.9% from December.
Beef steak prices in January were 12% higher than last year.
