A proposed framework for psychological drivers of BNPL User's spending behaviour.

Abstract

Buy Now, Pay Later (BNPL) services have transformed consumer purchasing
behaviour, especially among younger demographics. However, concerns over overspending
and financial mishandling have driven the need to examine the psychological and financial
drivers behind BNPL usage. Led by the Theory of Planned Behaviour (TPB), this study
examines how factors such as materialism, instant gratification, perceived affordability, self
control, and financial literacy influence consumers' attitudes, subjective norms, and perceived
behavioural control, which collectively shape their intention to use Buy Now, Pay Later (BNPL)
and actual BNPL spending behaviour. An extended TPB model is proposed and will be tested
using quantitative data collected from the young adult generation. A structural equation model
(SEM) will be employed to evaluate the hypothesized relationships. Findings are expected to
provide insights into the cognitive and affective processes that lead to BNPL adoption and
inform strategies for promoting responsible usage. This study contributes to the increasing
body of literature on the consumption of fintech and suggests practical implications for
financial educators, BNPL providers, and policymakers.