Buy now, pay later adoption among generation z in Pakistan: An integrated cognitive, psychological, and social perspective
Keywords:
Financial literacy, Digital Literacy, Financial Parenting, Social Media Financial Influence, Perceived Pain of Payment, Perceived Ownership of Borrowed Money, BNPLAbstract
Buy now, pay later (BNPL) is a rapidly expanding form of digitally enabled short-term credit, yet the factors that move young consumers from considering BNPL to actually using it remain insufficiently understood in emerging economies. This study examines cognitive, psychological, and social antecedents of BNPL usage among Generation Z consumers in Pakistan. Financial literacy and digital literacy represent cognitive factors; perceived ownership of borrowed money and perceived pain of payment represent psychological factors; and social media financial influence and financial parenting represent social factors. Intention to use BNPL is specified as the immediate predictor of usage. Data were obtained through a questionnaire survey of 337 Pakistani Gen Z BNPL users selected through convenience sampling and analyzed using partial least squares structural equation modeling. Results show that financial literacy, perceived pain of payment, and financial parenting reduce intention, whereas digital literacy, perceived ownership of borrowed money, and social media financial influence increase it. Intention positively predicts actual BNPL usage, and all seven hypotheses are supported. The study integrates financial capability, payment psychology, and socialization within one intention-based model. It offers guidance for regulators, educators, families, platforms, and retailers seeking to promote informed, transparent, and responsible use of deferred-payment services among young consumers in Pakistan.
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Copyright (c) 2026 Waseem Rana, Hannan Afzal, Inam Ullah Khan, Ian Mobeen (Author)
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