Analysis of The Essential Motivation and Challenge Factors of the Buy Now, Pay Later Service Among Indonesian University Students

New data proves that university students in Indonesia, especially this Gen Z, are increasingly turning to BNPL services. Employment in the BNPL model results from unsupervised spending that significantly affects Generation Z, no previous studies on the motivation and challenges of BNPL could be identified. Thus, this research aims at ascertaining. The data was gathered from 373 participants and the data analysis technique employed in this study was Partial Least Squares Structural Equation Modeling (PLS-SEM). The data suggest that 59 percent of initiates, new members or olde for entertainment alone, it accounts for 3% consumption and most of the users are women. The last factor is perceived benefits where users believe that BNPL has certain benefits that are perceived by society. From the assessment of the sample using the financial literacy, capacity, and attitude dealing with the assessment of financial awareness among the Indonesian university students indicate that they are highly deficient in financial awareness. As confirmed by most of the university students most BNPL services are commonly employed for leisure. It is crucial that factors that led to the release of these BNPL apps should be rectified in future for them to serve their intended purpose.