BNPL usage rises for essential expenses like rent and groceries

Data indicates a significant shift in the use of ‘buy now, pay later’ (BNPL) services, as consumers increasingly utilize these short-term loans to cover essential living expenses. Recent reports show that nearly 30% of BNPL users have used the service for groceries, marking a 14% increase from the previous year. Additionally, 23% of respondents reported using BNPL for medical, dental, or veterinary services.

In response to this trend, companies like Affirm have launched pilot programs allowing users to pay rent via BNPL. While these loans are often interest-free and avoid late fees, they may require monthly membership fees ranging from $35 to $50. Analysts warn that while these services can provide temporary relief, they can also lead to financial distress if users encounter unexpected fees.

The BNPL market has seen explosive growth. In the United States, Americans borrowed approximately $160 billion through BNPL services in 2025, doubling the amount borrowed two years prior. Major industry players including Affirm, Klarna, Afterpay, PayPal, Sezzle, and Zip have driven this expansion, transitioning the service from a tool for discretionary purchases like electronics and furniture to a method for managing daily necessities.