The rising cost of groceries is pushing more consumers to use Buy Now Pay Later (BNPL) services for necessities such as groceries, according to new data from Adobe Analytics.
In January and February, BNPL's share of online purchases jumped 10 percent year-over-year, while revenue fell by 19 percent. This suggests more consumers are using the services for smaller purchases. In the meantime, groceries share of BNPL purchases skyrocketed 40 percent.
That compares to a 8 percent increase for apparel and a 14 percent drop for electronics.
“The rise of Buy Now Pay Later usage for groceries tells us that consumers are likely making bigger purchases online to take advantage of special promotions and stock up on staples, thus managing living expenses in more flexible ways,” said Vivek Pandya, lead analyst at Adobe Digital Insights.
Overall, ecommerce demand is holding up despite economic uncertainty. In 2022, consumers spent $86.8 billion on groceries on ecommerce platforms, up 10.8 percent year-over-year.
“E-commerce demand has remained resilient in an uncertain economic environment, driven in part by lasting pandemic habits where consumers had no choice but to leverage online food and home furnishing shopping services,” Pandya said.
Research Director at CFRA Research, Ken Leon, joins Cheddar to discuss Disney's earnings plus the shake up happening at Warner Brothers Discovery. Watch!
OpenTable CEO joins Cheddar to discuss this summer's top restaurant trends, how best to make a reservation and what perks you can now get on the app. Watch!
Nancy Clark, President of Verizon Value, on Total Wireless’s rebranding and its commitment to top speeds, network quality, and value for prepaid customers.
"Your Money Playbook" by Brandon Copeland offers practical advice on earning, managing, and building wealth, drawing from his NFL career and business education.
