Buy-now-pay-later usage is exploding across the United States, but industry leaders warn the growth hides deeper financial stress. Nigel Morris, Capital One co-founder and early BNPL investor, says the shift toward financing essentials like groceries is a clear signal that many consumers are struggling.
Usage is surging. BNPL now reaches roughly 91.5 million U.S. users, with a quarter using it for groceries earlier this year.
Delinquencies are rising. Late payments hit 42 percent of BNPL users in 2025, continuing a multiyear increase.
Debt is invisible. Because most BNPL loans are not reported to credit bureaus, borrowers can juggle multiple installment plans across platforms without lenders knowing.
Regulation is uneven. Federal attempts to classify BNPL under traditional credit rules were reversed, leaving state-by-state patchwork oversight.
Systemic risk is emerging. BNPL debt is being packaged and sold to investors, while companies push into B2B installment lending, creating unfamiliar spillover risks across consumer credit markets.
BNPL is not in a crisis yet, but the combination of phantom debt, regulatory gaps, and growing use among financially stressed borrowers suggests a fragile environment. Without clearer reporting and oversight, the pressures building beneath the surface may accelerate quickly.