30% of Americans Use BNPL to Pay for Groceries, Leading Retailers to Raise Prices
A new study from Washington University in St. Louis reveals that as more consumers use buy now, pay later (BNPL) services like Klarna and Affirm to finance grocery purchases, retailers are increasing sticker prices to offset transaction fees associated with these payment methods. According to the research, which will be published in Management Science, this shift is leading to higher costs for all shoppers, even those who do not use BNPL. The study found that 29% of Americans reported using BNPL services for groceries as of July 2026—up from 14% two years earlier. This trend reflects a broader affordability crisis driven by high inflation and rising healthcare and childcare costs, with over 91 million U.S. consumers now relying on these apps to finance purchases. Retailers are also facing pressure due to the thin profit margins of essential goods like groceries compared to larger discretionary items for which BNPL was originally designed. As a result, some retailers may reduce inventory or raise prices further in an effort to maintain profitability.
Topics: consumer behavior credit inflation retail