Exploring the Impacts of Buy Now, Pay Later (BNPL) Payment Method among Millennials and Generation Z in Malaysia

Nurnikman Podin, Nur Tasha Idayu Yusoff, Ng Rong Jie, Siti Nurbalqis Abd Halim, Nur Fatin Athirah Amran and Faizah Mohd Fakhruddin
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Nurnikman Podin: Doctoral Scholar, Doctor of Business Administration (DBA)Mandalay, Myanmar Public Works Department Sarawak Samarahan Division, Sarawak, Malaysia
Nur Tasha Idayu Yusoff: Faculty of Social Sciences and Humanities, University Technology Malaysia, Johor, Malaysia
Ng Rong Jie: Faculty of Electrical Engineering, University Teknologi Malaysia, Johor, Malaysia
Siti Nurbalqis Abd Halim: Faculty of Chemical and Energy Engineering, University Teknologi Malaysia, Johor, Malaysia
Nur Fatin Athirah Amran: Faculty of Chemical and Energy Engineering, University Teknologi Malaysia, Johor, Malaysia
Faizah Mohd Fakhruddin: Faculty of Social Sciences and Humanities, University Technology Malaysia, Johor, Malaysia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 6, 6488-6503

Abstract: The Buy Now, Pay Later (BNPL) trend tempts consumers with instant purchases but risks ensnaring them in a subtle web of debt, threatening their well-being. This study examines the impact of BNPL on millennials and Generation Z in Malaysia. In this study, a qualitative approach and case study design were employed, using semi-structured and in-depth interviews with individuals from both generations who have experienced using BNPL services. A total of 5 informants participated in this study, ranging in age from 23 to 37 and representing diverse backgrounds. All informants were selected through purposive sampling and criterion sampling techniques to select BNPL users from both generations. The findings reveal four impacts of BNPL on both generations. The first impact is on social aspects, which involve accessibility, eligibility, and normalization of BNPL in Malaysia. The second impact is related to the economic aspect, which highlights changes in spending behavior, the changing perception of debt, financial management, and financial strain. Regulatory considerations fall under the third impact, which is the political impact. The last one shows BNPL’s psychological impact in terms of anxiety and guilt. Limitations of this study include a small sample size, with only five informants involved, which restricts generalizability. This study encourages future researchers to employ larger samples and implement quantitative methods to provide more detailed analysis. This study also recommends structured financial literacy programs to enhance users’ financial education and awareness about BNPL usage.

Date: 2025
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