Do financial socialization, financial behavior, and knowledge determine consumers’ attitude and behavioral intention toward buy-now-pay-later ( BNPL ) usages?

Pankaj Kumar, Mahender Yadav, Pardeep Ahlawat, Vinay Sharma and Manisha Saini

Journal of Financial Regulation and Compliance, 2025, vol. 34, issue 3, 336-371

Abstract: PurposeThis study aims to examine how financial socialization (FS), financial behavior (FB) and buy-now-pay-later (BNPL) knowledge determine consumers’ attitude and behavioral intention (BI) toward the continuous usages of BNPL payment scheme (BNPLPS) employing family financial socialization theory (FFST).Design/methodology/approachThe survey data were collected from 328 consumers who were using the BNPLPS to buy products and services. Variance-based structural equation modeling has been used to assess the research hypotheses.FindingsThe results reveal that consumers’ BNPL knowledge has emerged as the leading determinant of their attitude toward using BNPLPS, followed by FS and FB. Notably, consumers’ BI toward the continuous usage of BNPLPS is most significantly determined by BNPL knowledge, followed by their FB, attitude and FS. Results reveal the partial mediating role of consumers’ attitude between FFST elements, i.e. FS, FB and BNPL knowledge, and BI toward the continuous usages of BNPLPS. Notably, the partial mediating role of attitude between BNPL knowledge and BI was found to be most significant, and between FB and BI is least significant.Originality/valueThis is a pioneering study that has examined the determinants of consumers’ attitude and BI toward the sustained utilization of BNPLPS and validates the FFST elements, i.e. FS, FB and BNPL knowledge in the domain of BNPL as an emerging financial technology (Fintech) credit product. Besides, the present study offers several contributions to Fintech literature and also provides implications to BNPL service providers and BNPL regulators, which help them to understand what drives consumers’ attitude and BI toward continuous usage of BNPLPS and make appropriate strategies for encouraging and regulating the consumers to use BNPLPS effectively to manage financial requirements for buying products and services.

Keywords: Buy-now-pay-later; Financial socialization; Financial behavior; BNPL knowledge; Consumers’ attitude; Behavioral intention (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrcpp:jfrc-11-2024-0237

DOI: 10.1108/JFRC-11-2024-0237

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