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Albertsons becomes latest retailer to offer CareCredit payment for health-and-wellness items
In a tough economy, more consumers are turning to credit cards for essentials
2 Min Read
CareCredit cardholders can use their card for health-and-wellness items.Getty Images
A hardened economy has more shoppers putting the cost of necessities on credit cards.
Synchrony’s CareCredit credit card allows customers to buy now and pay later when it comes to health-and-wellness items. Walgreens, Walmart, Sam’s Club, and Rite Aid all accept CareCredit, and on Wednesday, Albertsons Cos. and its network of stores — Albertsons, Safeway, Vons, ACME, Shaw’s, and Jewel-Osco — announced it would now accept the method of payment.
CareCredit cardholders can use their card for health-and-wellness items including pharmacy (prescription, deductibles); qualified over-the-counter health products (first aid, vitamins, cold and allergy medications); select personal care (oral care, ear and eye care, hygiene); select beauty and hair care; select pet food and supplies; and qualified baby essentials (diapers, formula).
Recent studies have found an increase in shoppers using buy now, pay later methods for essentials like groceries and health-and-wellness products.
The Urban Institute’s brief titled, “How Many Families Take on Debt to Pay for Groceries?”, published in May, said although just over 33% of adults paid for groceries with a credit card and repaid the bill in full, 20% paid less than the full balance on a credit card but always made the minimum payment, and 7.1% did not make the minimum payment.
Furthermore, 37% of those who used buy now, pay later for groceries over the past 12 months missed payments on these loans.
Thirty-two percent of consumers are looking for ways to finance their purchases and delay payments, according to marketing technology company Vericast. The study also found that three in five people surveyed have used a buy now, pay later option at checkout to finance a purchase.
Historically, consumers employed companies like Zip, Klarna, Afterpay, and Sezzle for big-ticket purchases, but not anymore, according to the Vericast research.
A report from data and analysis company PYMNTS in late 2023 revealed six in 10 consumers, especially millennials, used installment plans to pay for products in the last 12 months.
