Americans are increasingly turning to short-term financing, or “buy now, pay later” options to cover their everyday essential purchases.
According to research by New York-based marketing agency PartnerCentric.com, over half (52 percent) of all Americans now use BNPL, with those in the Gen Z and Millennial age brackets leading the way at 59 percent and 58 percent, respectively.
The firm found that the 35 percent plan to use the method more this year, and this figure rises to 65 percent for Gen Zers.
Why It Matters
Even prior to President Donald Trump‘s tariff announcements in early April, and the subsequent hikes to China’s rates, Americans were showing signs of financial stress, such as cutting back on their usual purchases.
Some, including BNPL providers, have framed it as a reliable and convenient budget-management tool which spares users the need to complete credit checks or worry about interest payments.
However, experts have told Newsweek previously that the growing popularity of instalment-based payments serves as an indication of declining financial savviness, but also the toll inflation and general economic certainty has taken on average Americans’ budgets.
What To Know
According to PartnerCentric’s survey, based on responses from over 1,000 Americans nationwide, one-in-four admit to using BNPL more due to the rising cost of living, with 15 percent trying it for the first time in 2025.
The most popular purchases were for medium to large items, such as electronics, furniture and home goods—the average minimum price being $250. However, 31 percent admitted to using BNPL for groceries.
A survey from online lending marketplace LendingTree found that the number of respondents using BNPL for groceries had risen to 25 percent from 14 percent a year prior.
LendingTree analyst Matt Schulz told Newsweek that, despite the payment method being conceived as a means of splitting up more costly purchases, this development was “further proof of the toll that inflation, high interest rates, and general economic uncertainty continue to take on American families.”
The new partnership between BNPL provider Klarna and food delivery company DoorDash was similarly cited as a worrying recession indicator, with economist Gary Hufbauer describing the deal as “a barometer of true desperation.”
This is in addition to the results of recent consumer surveys, which have revealed declining confidence about the state and trajectory of the U.S. economy. The Conference Board’s latest survey found that revealed a broad-based decline in consumer confidence in April, the fifth consecutive monthly drop, with consumers’ expectations for the future falling to a 13-year low.
What People Are Saying
Stephanie Harris, CEO & founder of PartnerCentric, told Newsweek: “The rise of BNPL isn’t just about convenience—it’s about control. Americans are using it to navigate life on their terms, whether that means spreading out the cost of groceries or grabbing tickets to a show.”
“This shift tells us consumers are looking for tools that match the pace and pressure of modern life,” she added. “For brands, offering BNPL isn’t just a checkout upgrade—it’s a signal that you understand your customers’ reality and want to empower their choices. BNPL is becoming less about delaying payments and more about designing a financial rhythm that works for you.”
Personal finance expert George Kamel described BNPL as “the new credit card—without the plastic,” telling Newsweek that using the method for smaller purchases such as food delivery would mean Americans “eat their way further into debt, four payments at a time.”
Stephanie Guichard, Senior Economist for Global Indicators at The Conference Board, said: “Consumer confidence declined for a fifth consecutive month in April, falling to levels not seen since the onset of the COVID pandemic. The decline was largely driven by consumers’ expectations.”
“In addition, expectations about future income prospects turned clearly negative for the first time in five years, suggesting that concerns about the economy have now spread to consumers worrying about their own personal situations,” she added.
David Rosenberg, founder and president of financial research firm Rosenberg Research, told Newsweek previously: “Uncertainty causes consumers and firms to become more cautious about their spending plans. The tariff actions by themselves will be met first with a contraction in real incomes, which will translate into declining consumer expenditures, which represent nearly 70 percent of GDP.”
Klarna, in a March blog post, wrote: “For a healthier financial future, debit cards and Buy Now, Pay Later should replace high-cost, revolving credit. Americans should put most of their day-to-day spend on a debit card and use interest-free, installment credit for the few times they need to access credit.”
What Happens Next
While the Trump administration has downplayed the possibility of a recession, economists are increasingly erring towards the possibility of an economic downturn in 2025. Some 60 percent of economists polled in a recent Reuters survey rated the likelihood as high to very high, with 39 percent viewed it as low.
The post Buy Now, Pay Later Explodes in Popularity Amid Economic Anxiety appeared first on Newsweek.
