Enjoy Now, Worry Later: The Rise of Buy Now Pay Later (BNPL) as a Financial Innovation or an Avenue to Debt? A Systematic and Bibliometric Analysis

Abstract

This study aims to investigate the dual role of Buy Now, Pay Later (BNPL) services, examining them as both a financial ally and a potential debt trap for users. The impact of BNPL on its users is comprehensively explored utilizing two methodological approaches, namely bibliometric analysis and systematic literature review (SLR). The bibliometric analysis, based on 108 papers extracted from Scopus, provides an overview of current trends and the state of research in this field. Meanwhile, the SLR, drawing on 19 documents from Scopus and ScienceDirect, delves deeper into the mechanisms and implications of BNPL tools. The study focuses on three major themes: BNPL as a financial ally, its potential to become a debt trap, and its predominant use among the younger generation. The findings are expected to inform financial service providers, policymakers, and regulators about the benefits and risks of BNPL users, highlighting the need for balanced approaches to maximize its advantages while mitigating its pitfalls.