Riding the wave of change: Buy now, pay later as a disruptive threat to payment cards in the global market

Umberto Filotto, Dario Salerno, Gabriele Sampagnaro and Gian Paolo Stella

Research in International Business and Finance, 2024, vol. 72, issue PA

Abstract: This paper studies changes in the worldwide payment system by examining the growing popularity of buy now, pay later (BNPL). Considering variables related to individual financial personality and socio-demographic traits, we provide an original dataset to investigate whether BNPL could be a valid substitute for the use of payment cards. The results show that the payment card sector should take BNPL seriously as a competitive challenge. The developments of the COVID-19 pandemic suggest a possible change from the usage of payment cards towards BNPL, similar to what happened with cash transactions. This research contributes to the literature on the topic by proposing fresh ideas for payment methods and the financial sector, which continue to evolve in response to consumer needs.

Keywords: Buy now pay later; Payment cards; Consumer finance; Financial literacy (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:72:y:2024:i:pa:s0275531924002927

DOI: 10.1016/j.ribaf.2024.102499

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