Buy Now, Pay Later (BNPL) and Generation Z: A Machine Learning Approach to Spending Behavior and Financial Well-Being

This research examines how generation Z customers located in Coimbatore manage their finances and their purchasing patterns in relation to Buy Now, Pay Later (BNPL) services. The relationship between various independent variables income and stability, spending and debt management, social and peer influence, and regulatory environment and their impact on the financial well-being of Generation Z consumers. The damaging effects on financial wellbeing of two additional independent variables: long-term objectives and financial literacy learnt through R programming. The results show that the financial well-being of Generation Z consumers has meaningfully improved by income and stability, spending and debt management, peer and social influence, and the regulatory environment. On the other hand, long-term objectives and financial literacy have a negative effect on financial well-being. These findings provide important new information about the interactions between BNPL services and the financial practices of Coimbatore's Generation Z customers.