US Consumers Turn to Credit and Prepaid Cards for Grocery Purchases

A recent Urban Institute survey of more than 7,500 working‑age Americans found that an estimated 63% of respondents used a credit card to buy groceries in the past year. While about 35% paid their balances in full each month, roughly 20% carried balances and 9% failed to make minimum payments consistently. In addition, nearly one‑in‑five households withdrew money from emergency savings for food, 5.2% used payday‑loan cash, and 8.9% relied on buy‑now‑pay‑later financing, with over a third of those borrowers missing at least one payment.

Separately, research highlights that over 5.6 million unbanked U.S. households often turn to reloadable prepaid debit cards such as Netspend as a checking‑account alternative. Netspend provides Visa or Mastercard cards without credit checks, allowing users to load funds via direct deposit, mobile check deposit, or cash at retail locations, though fees can accumulate. The card enables online purchases, ATM withdrawals and bill payments, offering a route for those unable to open traditional bank accounts.