Buy Now, Pay Later And Generation Z Financial Well-Being: A Systematic Literature Review
DOI:
https://doi.org/10.33751/jhss.v10i03.291Keywords:
Buy Now Pay Later, financial stress, financial well-being, Generation Z, systematic literature reviewAbstract
This study synthesizes evidence on how Buy Now, Pay Later (BNPL) affects financial stress and financial well-being among Generation Z. A systematic literature review was conducted using publications retrieved from Scopus through Publish or Perish, Google Scholar, and SINTA. The search covered studies published from 2018 to 2025. After title, abstract, keyword, and full-text screening against predefined inclusion and exclusion criteria, 30 relevant studies were analyzed through thematic synthesis. The literature consistently shows that BNPL expands short-term purchasing access and increases transaction value by reducing the perceived immediacy of payment. However, installment framing, promotional intensity, and frictionless checkout can encourage impulsive buying, overspending, multiple repayment obligations, and over-indebtedness. The effect on financial well-being is therefore conditional rather than uniformly negative or positive. Responsible financial behavior and self-control emerge as central mechanisms, while financial literacy is most effective when it is translated into budgeting, repayment discipline, and deliberate credit use. The review proposes a conditional framework in which BNPL usage influences financial stress and well-being through behavioral and psychological pathways. The findings support stronger consumer protection, transparent product design, risk-sensitive credit limits, and targeted financial education for young users.
References
A. Kumar, J. Salo, and R. Bezawada, “The effects of Buy Now, Pay Later (BNPL) on customers’ online purchase behavior,” Journal of Retailing, vol. 100, no. 4, pp. 602–617, 2024, doi: 10.1016/j.jretai.2024.09.004.
R. Ashby, S. Sharifi, J. Yao, and L. Ang, “The influence of the buy-now-pay-later payment mode on consumer spending decisions,” Journal of Retailing, vol. 101, pp. 103–119, 2025, doi: 10.1016/j.jretai.2025.01.003.
A. N. Bahasoan, N. Qamariah, Wahdaniah, and B. Indayani, “Buy Now, Pay Later culture: Economic analysis of the PayLater phenomenon among Gen Z,” International Journal of Finance and Business Management, vol. 3, no. 3, 2025, doi: 10.59890/ijfbm.v3i3.55.
S. S. Abed and R. S. Alkadi, “Sustainable development through fintech: Understanding the adoption of Buy Now Pay Later (BNPL) applications by Generation Z in Saudi Arabia,” Sustainability, vol. 16, no. 15, Art. no. 6368, 2024, doi: 10.3390/su16156368.
O. Mesly, “Buy now and pay (dearly) later: Unraveling consumer financial spinning,” International Journal of Financial Studies, vol. 9, no. 4, Art. no. 55, 2021, doi: 10.3390/ijfs9040055.
B. Bagniewski, J. Kubiczek, and Z. Żuchowska, “BNPL in the consumerism world: About the excessive debt trap,” Journal of Finance and Financial Law, 2024.
R. Powell, A. Do, D. Gengatharen, J. Yong, and R. Gengatharen, “The relationship between responsible financial behaviours and financial wellbeing: The case of Buy-Now-Pay-Later,” Accounting & Finance, vol. 63, no. 4, pp. 4431–4451, 2023, doi: 10.1111/acfi.13100.
C. N. Intantri and F. Santi, “Financial well-being: Indications on Buy Now Pay Later users in Indonesia,” Jurnal Doktor Manajemen, vol. 8, no. 2, pp. 127–139, 2025, doi: 10.22441/jdm.v8i2.34205.
A. Krisnawati and D. M. Rabbani Sam, “The impact of debt literacy on over-indebtedness of Buy Now Pay Later (BNPL) users in West Java,” Atlantis Press, 2024.
N. W. Fitriyah and R. Nadlifatin, “Behavioral factors of intention to use Pay Later services: A systematic literature review,” E3S Web of Conferences, 2024.
D. Johnson, J. Rodwell, and T. Hendry, “Analyzing the impacts of financial services regulation to make the case that Buy-Now-Pay-Later regulation is failing,” Sustainability, 2021.
E. M. Cervellati, U. Filotto, D. Sgrulletti, and G. P. Stella, “Buy Now, Pay Later consumer credit behavior: Impacts on financing decisions,” Qualitative Research in Financial Markets, 2025, doi: 10.1108/QRFM-07-2024-0185.
S. Papich, “Effects of Buy Now, Pay Later on financial well-being,” SSRN, 2022.
U. Goonetilleke, “Buy Now Pay Later services and the financial wellbeing of young Australian adults,” Swinburne University of Technology, 2022.
B. Constansje, F. Kurniasari, and A. Abubakar, “The effects of financial literacy, self-efficacy, and financial stress on risky credit behavior of Generation Z: Evidence from Pay Later users,” Journal of Entrepreneurship, Business and Economics, 2023.
Y. Cheng and J. Huo, “Adoption of Buy Now, Pay Later (BNPL): A time inconsistency perspective,” Journal of Theoretical and Applied Electronic Commerce Research, 2025.
M. Wang and J. Kim, “Investigating drivers of continued BNPL service usage and subjective well-being impacts among China’s MZ generation,” Journal of System and Management Sciences, 2024.
K. F. Nikolaus, A. Setiawan, and H. Djajadikerta, “Pengaruh penggunaan metode pembayaran Pay Later dan financial literacy terhadap perilaku pembelian impulsif oleh pengguna e-commerce generasi Z di Indonesia,” INNOVATIVE: Journal of Social Science Research, 2024.
P. J. P. Tambunan, H. Mulyati, and E. Anggraeni, “Factors that affect the consumptive behavior of PayLater users,” Quantitative Economics and Management Studies, 2025.
B. B. Ramadhan, “Financial literacy and risky credit behavior: The mediating role of financial stress in PayLater usage,” Financial Resilience and National Values Journal, 2025.
R. C. Engelberth, S. Pangemanan, and J. E. Tulung, “Buy Now, Pay Later: Determinants of pay later service affecting the lifestyle of society,” Jurnal EMBA, 2020.
C. I. P. Hegawan, T. M. Faustine, S. Wijayanti, and P. A. Manaf, “Exploring the influence of perceived usefulness and value of PayLater/BNPL on satisfaction, impulsive buying, and post-purchase intention,” International Journal of Emerging Trends in Social Sciences, 2023.
N. K. Hisham et al., “A comprehensive review of Buy Now Pay Later (BNPL) influence factors on young consumer spending behaviour in e-commerce platforms,” International Journal of Research and Innovation in Social Science, 2025.
N. D. Ismail, C. S. Lazim, Z. Zolkaply, M. S. Othman, S. B. Syed Abuthahir, and M. D. A. K. Tazilah, “A conceptual study of the moderating effects of financial struggles on impulsive online purchases with Buy Now Pay Later services among Gen Z in Malaysia,” Atlantis Press, 2025.
S. N. S. Mustapa, S. S. Ahmad, and A. Zakaria, “Financial literacy, behavior, and inclusion as predictors of financial well-being among young BNPL users: A conceptual framework,” Advanced International Journal of Business, Entrepreneurship and SMEs, 2025.
T. Septania and G. G. Gosal, “The mediating role of financial literacy and financial risk tolerance in parental financial teaching on financial attitudes of Buy Now Pay Later users in Generation Z in Indonesia,” JMBI UNSRAT, 2025.
C. T. Widiastuti and E. Sumastuti, “Financial literacy, usage of pay-later services, and impulse buying: The mediating role of shopping habits,” Indonesian Journal of Business and Entrepreneurship, 2025.
F. Ziesemer, A. Hüttel, and I. Balderjahn, “Young people as drivers or inhibitors of the sustainability movement: The case of anti-consumption,” Journal of Consumer Policy, 2021.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 JHSS (JOURNAL OF HUMANITIES AND SOCIAL STUDIES)
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
