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VOL. 8, ISSUE 3 (2026)
The impact of buy now, pay later services on consumer spending behaviour and financial management among young adults: Examining the roles of purchase convenience, impulse buying and financial literacy
Authors
Dr. Sujitha K A
Abstract
The pay now pay later services have gained popularity among the young
adults, as the customers can make the purchase of the product immediately and
pay it later in installments. As the use of these services has increased, so
has the concern about how they are impacting consumers' spending habits and
personal finances. This study analyzes the effect of BNPL services on the
consumer spending behaviour and financial management of young adults focusing
on purchase convenience, impulse buying and financial literacy. The research
examines whether BNPL makes things easy and flexible for consumers which might
lead them to make purchases they would not have otherwise taken. It also
examines the correlation between BNPL use and impulsive shopping, given that
buying and immediate payment are separate, it may seem as though the purchase
isn't as financially taxing. Meanwhile, financial literacy is viewed as a key
determinant that can affect BNPL utilization responsibility among young adults.
Those who have better financial literacy may have a better understanding of the
commitment involved in paying back loans, interest fees or late fees, and the
risks associated with overborrowing. The study suggests that whilst BNPL
services can increase purchasing flexibility and offer short-term convenience,
the repeated and/or poor management of such services could lead to increased
spending and budgeting challenges for consumers. The study also suggests that
the effects of these factors may be moderated by financial literacy by promoting
prudent financial behavior. The study seeks to gain insights into the role that
new digital payment methods are playing in the financial behavior of young
consumers by analysing these relationships. The results could contribute to the
dialogue surrounding the adoption of responsible use of BNPL, and the effective
management of loans by young adults among consumers, financial educators,
service providers and policy makers.
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Pages:104-111
How to cite this article:
Dr. Sujitha K A "The impact of buy now, pay later services on consumer spending behaviour and financial management among young adults: Examining the roles of purchase convenience, impulse buying and financial literacy". International Journal of Finance and Commerce, Vol 8, Issue 3, 2026, Pages 104-111
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