Global rise in Buy Now, Pay Later usage for essential goods

The use of Buy Now, Pay Later (BNPL) services is expanding globally, shifting from luxury goods to essential daily necessities. In the United States, a LendingTree survey indicates that 29% of BNPL users now use the service to purchase groceries, a significant increase from 14% two years ago. Experts note that while BNPL offers cash flow flexibility, it is increasingly being used as a financial crutch for those struggling with living costs, with 54% of users reporting they need these loans to make ends meet.

In Italy, BNPL usage has grown from 4% of families in 2022 to approximately 30% today, according to Banca d'Italia. While still trailing Northern European nations like Sweden and Germany in terms of share of online payments, the tool is becoming more accessible across various demographics.

In Indonesia, the rise of BNPL has prompted a focus on risk management and governance. Companies like PT Indodana Multi Finance are implementing integrated technology-based compliance frameworks to manage credit quality and protect users from the risks associated with rapid digital financing expansion.