Why payments are becoming a grocery problem

At grocery stores across the country, checkout lines have become a stark reflection of America’s financial reality. 

With rising prices, late paychecks, and other disruptions more shoppers are pausing at the register. Some double-check their balance. Others remove items. These challenges aren’t new, but they’re becoming harder to ignore.

Many grocery shoppers aren’t holding back because they don’t want to buy. Instead, they’re delaying or reducing everyday purchases because their available funds don’t align with when food is needed. Zip’s grocery shopper research shows that this gap in payment timing is creating real pressure at the register, with many delaying or reducing purchases that would otherwise be routine and 77% of Zip grocery customers reporting using Zip when money was tight.¹

Grocers have long optimized for price, product, and proximity. But a new barrier is emerging at the moment of purchase. What happens when your customer is ready to fill their cart, yet their payment timing isn’t ready to meet them there?

Modernization has reached almost every arm of the grocery industry, from inventory to apps. But the most critical part of the experience, checkout and payment, has not evolved at the same pace. Modern financial realities of working families—like households with variable incomes—aren’t always adequately served by traditional payment systems, especially when income and benefits can fluctuate week to week. 

The Federal Reserve has documented that many U.S. households experience income volatility within a single month, even when they are employed, creating short-term cash flow gaps that affect essential spending like groceries.⁶

Zip survey research validates this gap. Shoppers with irregular pay cycles are more likely to reduce baskets or abandon purchases when flexible payment options are not available. In these moments, the issue is not willingness to buy, but a lack of flexibility in planned grocery trips with cash flow.¹

That gap creates friction at checkout. A parent may pause to adjust what’s in their basket, or a shopper might set aside a few items with the intention to purchase once their paycheck lands. These are customers who can manage the cost, just not at that exact moment, underscoring how small shifts in payment flexibility can influence whether an everyday purchase is completed in the moment or delayed.

To stand out, grocers need payment strategies that support shoppers during tight weeks.

Research from the U.S. Department of Agriculture’s Food Access Research Atlas shows that when households face financial or logistical barriers to purchasing groceries, they are more likely to reduce quantity or nutritional quality rather than stop shopping altogether.⁷

Zip’s grocery research shows that when shoppers feel supported during tighter weeks, they are more likely to return to the same retailer and consolidate future trips there. 92% say they are very or extremely likely to use Zip again for grocery purchases, and 60% shopping more frequently at the same retailer, reinforcing that payment flexibility influences store choice and repeat behavior.¹

That belief underpins Zip’s partnership with Forage, a leader in government payment processing helping ensure families relying on SNAP and EBT can continue purchasing groceries during benefit disruptions. It's a great example of how financial technology and grocery retailers can work together to help households stay fed when timing, not intent, is the problem.

In today’s income landscape, flexible payments are often misunderstood as a path to bill stacking. However, Zip survey research indicates that, for many shoppers, it serves as a short-term payment option that helps manage timing gaps at checkout, particularly when income or benefits arrive on an irregular schedule. Rather than replacing existing routines, Zip is often used to navigate momentary cash flow mismatches and complete a planned grocery purchase.

More shoppers are using buy now, pay later for planned grocery trips, showing that flexible payments are now part of buying everyday essentials—not only discretionary purchases.²

Repayment trends reinforce user responsibility. Zip research shows strong repayment performance, with 98%+ of transactions repaid in full³ and 35% of purchases repaid early in 2024⁵ Grocery orders in particular show high on-time repayment, reflecting essential, predictable spending.¹

These aren’t risky customers. 

These customers are shoppers navigating timing gaps like variable income, delayed benefits, or uneven pay cycles. Many households lack traditional credit history—not because they cannot pay, but because financial systems were not built around their income patterns.⁸ Flexible payments can help them achieve balance. 

Responsible, inclusive payment options create a win-win: customers maintain access to essential groceries, and grocers capture more completed purchases without added risk.

For grocers, the checkout is where baskets are completed, reduced, or abandoned. Merchants that integrate with Zip can help shoppers finish their trip while protecting their bottom line. Zip’s grocery research shows that payment flexibility matters most at the end of the journey, when budgets are stretched, and essential items are already in the cart.¹

By adding Zip BNPL to a grocery checkout, grocers can:

Reduce basket abandonment and smaller baskets by offering shoppers a way to complete essential purchases when funds run short.

Capture full basket value by offering flexible payment as another lever alongside pricing and promotions.

Get paid upfront, with Zip assuming repayment risk and ongoing servicing.

Support customer loyalty by offering flexibility when income or benefits are delayed.⁴

Supporting responsible customers, supported by strong repayment behavior. 98%+ of transactions are repaid in full³ and a meaningful share repaid early⁵.

The result is a payment model that helps grocers protect revenue, strengthen trust, and serve more shoppers without taking on additional credit risk or operational burden.

Grocers invest heavily in value, availability, and assortment to provide their shoppers the best grocery experiences. But many are falling behind in providing the same great experiences for payment, which presents as fewer visits and smaller baskets. 

Flexible payments help close that gap. By offering shoppers a way to complete essential purchases when funds are temporarily strained, grocers can protect basket size and food access without adding risk or operational load.

Move from smaller baskets to stronger loyalty. Talk to a Zip expert to see how flexible payments help customers complete essential purchases while protecting your margins and operations.

_{¹ Zip, Grocery Customer Deep Dive (U.S. market research report, August 2025). Findings based on a proprietary survey of U.S.-based Zip users conducted July 15–18, 2025 (n=668). Results reflect self-reported customer behavior and perceptions and are not intended to represent the general U.S. population or all consumers.}

_{² Bill Wilson, “Buy now, pay later on the rise for grocery shoppers,” Supermarket News, April 2025.}

_{³ “98%+ of transactions repaid in full.” FY25 annual results released to the ASX.}

_{⁴ Zip payment flexibility features. A fee may apply for payment date changes. Eligibility criteria apply.}

_{⁵ “35% of all Zip purchases were repaid early.” Zip internal data as of January 2025.}

⁶_{Board of Governors of the Federal Reserve System. (2024). Survey of Household Economics and Decisionmaking (SHED). Federal Reserve System.https://www.federalreserve.gov/consumerscommunities/shed.htm}

⁷ _{U.S. Department of Agriculture, Economic Research Service. Food Access Research Atlas. https://www.ers.usda.gov/data-products/food-access-research-atlas/}

⁸ _{U.S. Census Bureau. (2025). National Population by Characteristics: 2020–2024 [Data set]. U.S. Department of Commerce. Retrieved fromhttps://www.census.gov/data/tables/time-series/demo/popest/2020s-national-detail.html}

_{Loans through Zip are originated by WebBank. Eligibility criteria apply. Payment terms and fees vary by product and merchant. Testimonials and survey results reflect individual experiences and may not be representative of all users.}