A STUDY ON CONSUMER BEHAVIOUR TOWARDS BUY NOW, PAY LATER (BNPL) SCHEMES

Abstract

The evolution of digital finance has given rise to innovative payment methods, one of the most prominent being Buy Now, Pay Later (BNPL) schemes. These services allow consumers to make immediate purchases and defer payments over time, often with little to no interest if paid within a specific period. In the post-pandemic economy, where online shopping and instant credit demand have surged, BNPL has gained significant popularity, especially among millennials and Gen Z consumers. This study aims to explore consumer behavior, preferences, and financial habits associated with the usage of BNPL services. The research delves into key aspects such as awareness of BNPL platforms, frequency and nature of usage, impact on impulsive buying, repayment behavior, and users’ understanding of repayment terms and penalties. Additionally, the study evaluates the influence of demographic factors like age, income, and occupation on BNPL usage patterns. A quantitative research methodology was adopted using a structured questionnaire circulated through digital platforms. Data was collected from a diverse group of respondents and analyzed using statistical tools including z-test, t-test, and visual analytics through Tableau, to derive meaningful insights. The findings indicate that while BNPL services offer convenience and flexibility, they may also lead to poor financial discipline among some users due to the ease of delayed payments. The project also highlights potential risks and limitations of BNPL schemes, such as hidden charges, credit score impacts, and overspending tendencies. Based on the analysis, the study offers recommendations to consumers, financial institutions, and fintech companies for promoting responsible usage, improving transparency, and increasing financial literacy among users. In conclusion, the research provides a comprehensive view of how BNPL schemes are reshaping consumer spending behavior in India, and emphasizes the need for a balanced approach to enjoying their benefits while managing financial responsibilities effectively.