Determinants of Intention to Use Buy Now Pay Later (BNPL)

Abstract

Objectives: Buy Now, Pay Later (BNPL) is categorized as a fintech service. It is a type of short-term installment plan, the fintech companies integrate the lending installment plan as one of the payment options in online shops. The payment scheme allows consumers to pay the total amount in installment mode without interest charge over a short period of time, usually within a few months. The main aim of this research is to examine the factors that influence the intention to use BNPL services in Malaysia.   Theoretical Framework: The study utilizing the Unified Theory of Acceptance and Use of Technology (UTAUT) theories as the underlying theoretical framework.   Method: A quantitative approach was used in this study. A statistical software tool, SPSS, is used to analyze the data that was collected from 384 respondents through the online survey questionnaires.   Results and Discussions: The finding of this study shows that materialism, social influence and user-friendliness significantly positively influence the intention to use BNPL. While trust is not significantly influencing the intention to use BNPL.   Research Implication: The research offers understanding in consumer behavior, informing regulatory frameworks and enhancing BNPL service offerings.   Originality/Value: This study's novelty lies in examining BNPL adoption determinants specifically within the Malaysian context where social influence played the most important part for the adoption of BNPL.