Buy Now, Pay Later and Compulsive Spending: An Exploratory Survey of the Psychological Correlates of BNPL Use

Buy Now, Pay Later (BNPL) allows consumers to receive goods immediately and pay for them in a series of later instalments. This exploratory study describes the profile of BNPL users and examines how the intensity of BNPL use, impulsivity, present bias, materialism and difficulty with self-control are related to self-reported compulsive spending. A structured questionnaire yielded 45 responses; 25 respondents had used a pay-later facility during the preceding 12 months, and 20 of them provided complete spending-behaviour data. Users were predominantly female (96%), and the 18–24 age band was the largest (44%). Almost half (48%) used BNPL only a few times a year and 52% reported that it made up under 10% of their monthly spending; even so, 60% had incurred a late fee or other additional charge at least once and 56% used more than one BNPL app. Across the 20 complete cases, intensity of BNPL use was positively correlated with compulsive spending (r = .759, p < .001), as were impulsivity, present bias, materialism and difficulty with self-control. A short financial-literacy score was unrelated to compulsive spending (r = −.021, p = .930). Because the sample is small, self-selected and strongly skewed by gender, the findings are preliminary, indicate association rather than causation, and do not permit financial literacy to be tested as a moderator. Implications for consumers, providers and regulators are discussed, and a design for a larger follow-up study is outlined.