“From Instant Gratification to Long-Term Consequences: How Buy Now, Pay Later Influences Consumer Behavior and Financial Stabilityâ€

Norhafizah Abdul Halim, Shazwani Mohd Salleh, Siti Noor Syalwani Mustapa, Norhasyikin Rozali and Siti Murni Mat Khairi
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Norhafizah Abdul Halim: Faculty of Business and Management, Universiti Teknologi MARA Cawangan Kedah, Kampus Sungai Petani, 08400 Merbok, Kedah, Malaysia
Shazwani Mohd Salleh: Faculty of Business and Management, Universiti Teknologi MARA Cawangan Kedah, Kampus Sungai Petani, 08400 Merbok, Kedah, Malaysia
Siti Noor Syalwani Mustapa: Faculty of Business and Management, Universiti Teknologi MARA Cawangan Kedah, Kampus Sungai Petani, 08400 Merbok, Kedah, Malaysia
Norhasyikin Rozali: Faculty of Business and Management, Universiti Teknologi MARA Cawangan Kedah, Kampus Sungai Petani, 08400 Merbok, Kedah, Malaysia
Siti Murni Mat Khairi: Faculty of Business and Management, Universiti Teknologi MARA Cawangan Kedah, Kampus Sungai Petani, 08400 Merbok, Kedah, Malaysia

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 9, 403-411

Abstract: Buy Now, Pay Later (BNPL) services have experienced remarkable growth in recent years and have become particularly popular among younger consumers. Addressing these trends, this study aims to investigate the relationship between BNPL usage, consumer behavior, and financial well-being, with a specific focus on the mediating roles of demographic factors and financial literacy. Employing a mixed-methods approach, the research integrates quantitative surveys and qualitative interviews to collect comprehensive data from a varied consumer sample. Quantitative analysis identified significant correlations between BNPL usages and increased impulsive spending, which contributes to financial difficulties, particularly among younger individuals. Qualitative insights further revealed the decision-making processes and perceived long-term impacts of BNPL services. While financial literacy was found to serve as a mitigating factor, demographic variables such as income and age proved crucial in influencing financial outcomes. The findings have significant theoretical and practical implications, reinforcing behavioral finance theories related to cognitive biases in financial decision-making. These insights are vital for safeguarding consumers from potential risks associated with BNPL services. The study advocates for future research to explore the long-term effects of BNPL on financial stability and to investigate cultural differences in these impacts, thus providing a more nuanced understanding of the phenomenon.

Date: 2024
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