Buy now, pay later consumer credit behavior: impacts on financing decisions

Purpose The rapid expansion of buy now, pay later (BNPL) services has attracted significant interest from academics, policymakers and industry professionals. This paper aims to explore the BNPL phenomenon from the perspective of consumer behavior, specifically its impact on financial decision-making. Design/methodology/approach This research is supported by empirical evidence from a survey conducted with 1,457 participants. The survey collected detailed information on participants’ attitudes toward BNPL services, their familiarity with these services and their actual usage patterns. The authors used statistical analysis techniques to examine the relationships between these variables and the likelihood of adopting other consumer credit options. The methodology ensured a comprehensive understanding of how BNPL services influence broader financial behaviors among consumers. Findings The authors discovered that personal attitudes toward BNPL, along with familiarity and actual use of these services, significantly influence the likelihood of adopting other consumer credit options. The results highlight the critical role that BNPL services play in influencing consumer financial behaviors and the increased adoption of additional credit instruments. Practical implications The findings underscore the importance of understanding consumer attitudes and behaviors toward BNPL services, which can inform the development of policies and practices to manage the growth of these services and their impact on financial decision-making. Originality/value This study provides novel insights into the influence of BNPL services on consumer financial behaviors, contributing to the literature on consumer credit and financial decision-making by highlighting the specific role of BNPL in shaping credit adoption trends.