A Proposed Framework for Assessing BNPL (Buy Now, Pay Later) Adoption and its Impact on Consumers' Buying Behavior

Abstract

Buy Now, Pay Later (BNPL) services allow retailers and enterprises to offer their consumers installment-based payment plans to help them manage their personal finances. As such, this research aims to examine the impact of BNPL services on consumer buying behavior. BNPL services are segmented into a convenient payment system, flexible repayment system, and accessible credit system. The study proposed primary data to be collected from Malaysian youth aged between 18 to 40 years through questionnaire. Partial Least Square-Structural Equation Modeling (PLS-SEM) is proposed to analyze the data. The conceptualized framework is underpinned based on the Diffusion of Innovation (DOI) theory that suggests that the adoption of BNPL services has a significant and positive impact on consumer buying behavior. This study will provide insights for regulators and industry players to decide BNPL’s future and to enhance its availability and adoption among the consumers.
 Keywords: BNPL services, convenient payment system, flexible repayment system, and accessible credit system, diffusion of innovation theory