Research on Psychological Motivation of Buy-now-pay-later in Consumer Finance: Benefits and Risks for Consumer

The use of digital wallets has significantly increased worldwide. These wallets link to consumers' bank accounts and support a variety of fintech payment methods, including the increasingly popular Buy Now, Pay Later (BNPL) option. Many merchants have now introduced BNPL features, allowing consumers to place orders and pay after receiving the goods. BNPL represents an innovative shift in consumption patterns, particularly appealing to young, low-income, and promotion-driven consumers. While this attractive payment mechanism seems to offer a convenient and fast shopping experience, the reality is more complex. This article first discusses the different types of BNPL and their adaptability to various consumer needs, highlighting the benefits for consumers. Next, it explores the psychological factors that drive the widespread use of BNPL. Finally, it reveals the potential consumer risks associated with BNPL in China's financial market, aiming to raise public awareness and provide a new perspective on maintaining a fair and transparent financial market. The study found that BNPL provides consumers with innovative benefits in terms of the payment pain, the herd effect, and the convenience of immediate acquisition and other motivations. However, there are currently no effective measures in place to address the risks of overconsumption, information asymmetry, and regulatory corruption.