Antecedents of buy now pay later usage among Gen-Z in Pakistan: The moderating role of financial self-control
Keywords:
Financial Literacy, Digital Literacy, Perceived Pain of Payment, Perceived Ownership of Borrowed Money, BNPL UsageAbstract
Customer credit in the digital age has been forever changed by buy now pay later (BNPL), which lets consumers purchase something now and pay for it in instalments over time. The current study aims to explore the role of cognitive (financial literacy and digital literacy) and psychological factors (perceived ownership of borrowed money, and perceived pain of payment) in influencing BNPL usage among the Gen Z consumers in Pakistan. The data were gathered by conducting a physical survey with 337 Pakistani Gen Z customers who have already availed BNPL, and analyzed with partial least squares structural equation modeling. All of the eight hypotheses are supported. The intention is negatively associated with financial literacy and perceived pain of payment, whereas digital literacy and perceived ownership of borrowed money are positively associated with intention. The intention to use is a strong predictor of actual use. Financial self-control reduces positive influence on intention, increases the deterrent effect of payment pain and reduces the conversion of intention to usage. The study builds on the theory of planned behavior by incorporating cognitive capability, payment psychology and self-regulation in the context of a credit market in an emerging economy. It also provides practical recommendations to regulators, educators, providers and retailers interested in responsible BNPL growth with youth.
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