More than 4 in 10 who used BNPL for groceries incurred late-payment or overdraft fees

More than 4 in 10 consumers (43%) who used BNPL for groceries or food delivery were hit with a late-payment, overdraft, or insufficient-funds fee, compared with 21% of BNPL users overall, according to a recent report from the Federal Reserve.

BNPL use among those with incomes under $50,000 differs only marginally from overall usage in most categories: Over the prior year, 51% of customers in this income bracket used BNPL for clothing/accessories purchases compared to 49% overall; 33% for electronics purchases compared to 32% overall; and 25% for furniture and appliances compared to 26% overall.

But groceries and food delivery are a different story. Among BNPL users who earn less than $50,000, 29% used BNPL for those food purchases over the prior year, compared to 20% overall. Among BNPL users who make more than $100,000, only 9% used BNPL for those food purchases.

“Taken together, these results suggest that some adults struggle to cover essentials, and BNPL is not filling the gap,” the report stated.

The findings are based on the Federal Reserve’s annual Survey of Household Economics and Decisionmaking, surveying 12,934 respondents in October 2025.

BNPL financed $20 billion in US online spending during the 2025 holiday season, a 9.8% YoY increase and an all-time high, according to Adobe Analytics data.