Buy now pay later (BNPL) products built for discretionary purchases now fund grocery shopping for one in four users globally, as 2026 data shows nearly half of all BNPL borrowers have missed at least one repayment in the past year.
Grocery purchases now account for one in four BNPL transactions globally, as households with no cash available before the next pay cycle use short-term credit instalments to cover essential spending, creating repayment obligations that can accumulate across multiple providers.
According to data published by Chargeflow and reported across financial industry sources in 2026, 25% of BNPL users worldwide are financing grocery purchases through short-term credit, up from 14% in 2024, while 47% of global BNPL users reported missing at least one payment in the past year, a 13-percentage-point increase from two years prior. The global BNPL market reached approximately $560 billion in gross merchandise value in 2025, with more than 300 million users worldwide. A product originally designed for discretionary spending, including electronics, travel and fashion, is now the instrument through which a significant and growing share of its users purchase food, and it is collecting late fees from the households least able to absorb them.
BNPL products finance essential spending alongside discretionary purchases
BNPL works by splitting a purchase total, usually into three or four instalments, with the first payment due at the time of purchase or shortly after. Most products present zero-interest terms. The catch is in the conditions: late fees, missed payment charges, and in some markets, deferred interest that activates if the full balance is not cleared by a stated date. These terms are disclosed, but only in full in the product agreement, which most users do not read before their first purchase.
The shift toward essential spending reveals a structural change in how the product is being used. When a household borrows to buy food, it is not accelerating a discretionary purchase: it is borrowing to meet a basic need it cannot currently afford. This is credit filling an income gap, not credit providing convenience. The repayment obligation that follows sits on top of the next pay cycle, reducing the funds available for the next essential purchase, which in turn creates pressure to use BNPL again.
The late fee exposure compounds across multiple active BNPL balances. Users in 2026 maintain an average of more than one active BNPL account simultaneously, according to industry tracking data. Monthly spending per BNPL user grew from $201.60 in June 2024 to $243.90 in June 2025, a 21% increase in one year. As balances grow across multiple providers, the total repayment obligation becomes harder to track through any single account statement, because each provider reports only its own account, not the user's combined BNPL exposure.
The regulatory response is arriving slowly. The UK's Financial Conduct Authority will bring BNPL products under formal regulation beginning July 2026, requiring creditworthiness assessments before approval and clearer cost disclosures. Most markets across Southeast Asia, South Asia, Africa and Latin America have not yet introduced equivalent requirements. In those markets, providers are not obligated to assess whether a household can afford the repayment schedule before approving a transaction.
More than half of BNPL users in 2026 report they could not make ends meet without access to the product, according to industry research reported in 2026. This figure reflects not the value of BNPL as a financial tool, but the degree to which short-term credit has become a structural component of household cash management for a significant portion of its user base, a function far removed from the discretionary convenience product it was designed to be.
Borrowers can track BNPL balances before repayments compound
The first step available to any household using BNPL products is to list every active BNPL balance, including provider, outstanding amount, next payment date, and late fee structure, in a single place. This exercise does not require a financial application. A notes file, a spreadsheet, or a piece of paper works equally well. Most users have never done it because each provider sends reminders only for its own account, creating the illusion that each balance exists in isolation.
Treating BNPL repayments as fixed monthly obligations alongside rent, utility bills and loan repayments, rather than as optional deferrals, changes how households manage their cash in the days before repayment dates. Providers in most markets do not report BNPL balances to credit bureaus unless they become severely delinquent, which means missed BNPL payments do not always appear in a credit score immediately. But the late fees are real and charged regardless of credit reporting status.
Applying BNPL products only to purchases with a clear repayment date, one where the household knows in advance which specific income will cover the repayment, reduces the risk of cascading balances. Using BNPL for groceries before the next pay cycle is confirmed is a different decision from using BNPL for a one-time purchase that will be covered by a known upcoming payment.
Some markets now provide consumer credit counselling services through central bank-affiliated bodies. The Bangko Sentral ng Pilipinas, the Reserve Bank of India and the Central Bank of Kenya, among others, maintain consumer financial education portals that include guidance on managing short-term credit products. These are free to access and require no account or registration.
Reviewing whether each active BNPL balance is for a discretionary purchase or an essential one reveals the nature of the credit dependency. Where essential purchases are being funded through BNPL repeatedly, the underlying issue is a cashflow gap, and credit is managing the symptom rather than the cause. Identifying this distinction is the first step toward addressing it.
BNPL transactions carry the same obligations as any loan
A BNPL transaction is a loan with a repayment obligation and real late fees. The only difference between BNPL and a traditional short-term loan is the interface through which it is offered, and the interface is designed to minimise the perception of borrowing. Households that evaluate each BNPL transaction with the same attention they apply to any other borrowing decision are in a fundamentally stronger position than those who do not.
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