The Impact of Digital Payment Systems (Buy Now, Pay Later) on Consumer Spending Behavior

This undergraduate thesis investigates the impact of Digital Payment Systems, specifically the “Buy Now, Pay Later” (BNPL) model, on consumer spending behavior in Pakistan. The study aims to explore how BNPL influences purchasing decisions, impulsive buying tendencies, and financial management patterns among young consumers. Using a mixed-method approach combining survey data and interviews, the research found that BNPL schemes significantly increase consumers’ spending frequency and reduce perceived payment friction. Findings highlight the importance of financial literacy and regulatory frameworks to ensure sustainable use of digital credit systems. This study contributes to understanding the behavioral and marketing implications of emerging fintech payment models in developing economies.