Consumers’ Behavioral Experiences with Buy Now, Pay Later (BNPL) Financial Services

Abstract

Digital payment solutions have experienced fast advancements which completely changed how customers conduct online shopping and handle their financial transactions. The Buy Now Pay Later (BNPL) service has emerged as the most sought-after option because it provides customers with the ability to make immediate purchases while delaying their payment obligations. The study examines how BNPL users make purchasing decisions and spend money and view their finances while considering their convenience needs and affordable options and their spending patterns and risk awareness level and their ability to handle repayments. The researchers conducted their qualitative research through ten semi-structured interviews with university students who attended International Islamic University Islamabad and Allama Iqbal Open University Islamabad and COMSATS University Islamabad and NUML and Bahria University. Thematic analysis was used to extract significant patterns and insights about BNPL adoption behavior. Users find value in BNPL because it provides them with instant product access and allows them to choose payment plans and helps them manage their financial obligations which results in more expensive and unplanned spending. The respondents showed concern about potential financial troubles resulting from their late payment and multi-repayment schedule management problems. The study found that users developed trust in the system through its transparent fee structure and its explicit repayment term communication. Proper repayment management together with financial literacy according to the research study leads to sustained long-term satisfaction. The research study presents new insights into how young consumers in developing markets adopt BNPL and how it impacts their spending habits and financial behavior. The findings enable BNPL providers and retailers and educators and policymakers to develop user-friendly services which increase financial literacy and enable responsible BNPL usage through sustainable methods while safeguarding users from potential risks.