BNPL surge masks growing consumer debt risks

Capital One cofounder and BNPL investor Nigel Morris warned at Web Summit that Americans using buy now pay later for groceries signals mounting strain. BNPL now counts 91.5 million U.S. users, with 25% financing groceries, and late payments climbed to 42% in 2025, LendingTree says. Because most loans are not reported, phantom debt hides risks. Recent regulatory pullbacks and rosy first-time user data deepen blind spots. Morris cites rising unemployment, the end of student loan forbearance, and expanding, securitized BNPL, including moves into B2B, as spillover risks, though delinquencies and charge-offs have not yet climbed.