A STUDY ON INFLUENCE OF BUY NOW PAY LATER ON CONSUMER BEHAVIOUR

Abstract

The present study examines the reasons behind the uptake of Buy Now Pay Later (BNPL) services by Indian consumers and how it impacts their spending habits. The results of this research are unequivocal: People use BNPL because it addresses a legitimate, urgent and pressing issue: paying later appears easier than paying now. Performance Expectancy was the most important adoption driver (r = 0.815, β = 1.001, p < 0.001) and the overall model accounted for 76.3% of the variance in adoption intention, whereas Social Influence barely registered, indicating that it is a utility rather than social choice. Following BNPL use, people's behaviour changes significantly: impulse buying increases (Mean = 3.66, p < 0.001) and financial stress follows (Mean = 3.43, p = 0.012), suggesting a ‘buy now pay later' effect where people feel bad about buying but feel no remorse about paying later. The 53% of non users who said they prefer familiar payment options, such as UPI, did not do so out of ignorance but because they are worried about spending. The only demographic factors that were statistically significant (with p = 0.021 and p = 0.044) were age and income, with the younger and lower income consumers being the "main" and "most exposed" market segments. For platforms, sellers/marketers, and regulators, the message is clear – ‘Buy Now Pay Later’ is gaining momentous push in India, but it will be crucial to build its credibility by focusing on transparency, answerable design, and inserting financial education as a fundamental component of the platform.