Public increasingly using buy now, pay later services for groceries
Buy now, pay later services are reporting increased usage for grocery items amid recent inflation levels.
WHILE FOOD PRICES INCREASE, STEAK PRICES ARE ON THE DECLINE
Credit company Zip reported a 95% growth in U.S. grocery purchases, while Klarna reported more than half of the top 100 items bought via its services are groceries. This comes as food prices increased 1.1% since last month, which made the year-over-year gain 10.9%, according to the latest consumer price index figures. That’s the largest 12-month increase since 1979.
An option to pay later for groceries could be contributing to a higher consumer confidence index, which was reported by the Conference Board, a nonprofit organization that publishes multiple indicators of consumer confidence. It announced last month that the index is at 103.2 for August, up from 95.3 last month.
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This comes just shy of a year after a historic holiday season for buy now, pay later services. Salesforce found use of the service shot up 29% year over year during November’s Cyber Week. PayPal’s service similarly saw a 400% increase on Black Friday compared to the same day in 2020.