Articles

Has Buy Now Pay Later become a symbol of hedonistic lifestyle among young people?

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The advancement of technology and the internet has driven significant transformations in the global business landscape and consumer lifestyles. One notable innovation in financial technology (Fintech) is Buy Now, Pay Later (BNPL), a digital financial service that enables consumers to make purchases without immediate payment, thereby creating a more appealing and instant shopping experience. This service has gained substantial popularity among younger generations, particularly Generation Z, who account for 56.7% of Pay Later users. This study aims to analyze the influence of BNPL on hedonistic lifestyle, facility utilization, and impulsive buying behavior using a quantitative approach involving questionnaire distribution and analysis through Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal a positive relationship between BNPL usage and both facility utilization and hedonistic lifestyle, which ultimately contributes to increased impulsive buying behavior among young consumers in Indonesia.

The Analysis of the “Buy Now, Pay Later” Use Intention in Indonesia

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The Rapid technological and informational advancements have an effect on the financial industries. One of its offerings is financial technology, sometimes known as fintech. In 2018, a number of fintech startups introduced products that enable clients to make installment payments without credit cards. This is referred to as Buy Now, Pay Later (BNPL). Then, numerous technology firms, such as Traveloka, Shopee, and Gojek, embrace this approach to round out their payment alternatives. The market for BNPL in Indonesia is quite promising. Demand for BNPL is quite high, as seen by the rapid expansion of BNPL providers in Indonesia. Many companies, including Traveloka, Gojek, Shopee, and others, demonstrated a rise in BNPL product usage. Using the Technology Readiness and Acceptance Model, this study examines the Buy Now, Pay Later usage intent (TRAM). This study concludes that technology readiness, perceived usefulness, and perceived simplicity of use influence the intention to use a BNPL product, with perceived usefulness having the most direct impact on users’ intentions.