The Determinants Impacting the Willingness to Use Fintech Payment Systems: The Case of Buy Now and Pay Later (BNPL)

Abstract

BNPL (Buy Now, Pay Later) services have swiftly gained prominence globally as a notable fintech payment innovation. In Saudi Arabia, a supportive fintech ecosystem and a tech-savvy young population have driven rapid BNPL uptake, underscoring the importance of examining factors influencing its adoption. This study adopts the PPM theory and employs a quantitative survey involving 158 Saudi BNPL users to identify key determinants of switching intention. The findings revealed that personal innovativeness, financial risk tolerance, privacy risk tolerance, and perceived value all demonstrated noteworthy positive impact on users’ intention to switch to BNPL solutions. In contrast, social influence did not show a substantial effect on the willingness to adopt BNPL solutions. These findings highlight the primacy of individual traits and perceived value over social factors, reinforcing the PPM framework’s relevance for fintech adoption in emerging markets. The findings provide valuable guidance for fintech companies and regulators to enhance perceived value and address risk concerns to foster BNPL adoption.