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Exploring the Impacts of Buy Now, Pay Later (BNPL) Payment Method among Millennials and Generation Z in Malaysia

Author

Listed:
  • Nurnikman Podin

    (Doctoral Scholar, Doctor of Business Administration (DBA)Mandalay, Myanmar Public Works Department Sarawak Samarahan Division, Sarawak, Malaysia)

  • Nur Tasha Idayu Yusoff

    (Faculty of Social Sciences and Humanities, University Technology Malaysia, Johor, Malaysia)

  • Ng Rong Jie

    (Faculty of Electrical Engineering, University Teknologi Malaysia, Johor, Malaysia)

  • Siti Nurbalqis Abd Halim

    (Faculty of Chemical and Energy Engineering, University Teknologi Malaysia, Johor, Malaysia)

  • Nur Fatin Athirah Amran

    (Faculty of Chemical and Energy Engineering, University Teknologi Malaysia, Johor, Malaysia)

  • Faizah Mohd Fakhruddin

    (Faculty of Social Sciences and Humanities, University Technology Malaysia, Johor, Malaysia)

Abstract

The Buy Now, Pay Later (BNPL) trend tempts consumers with instant purchases but risks ensnaring them in a subtle web of debt, threatening their well-being. This study examines the impact of BNPL on millennials and Generation Z in Malaysia. In this study, a qualitative approach and case study design were employed, using semi-structured and in-depth interviews with individuals from both generations who have experienced using BNPL services. A total of 5 informants participated in this study, ranging in age from 23 to 37 and representing diverse backgrounds. All informants were selected through purposive sampling and criterion sampling techniques to select BNPL users from both generations. The findings reveal four impacts of BNPL on both generations. The first impact is on social aspects, which involve accessibility, eligibility, and normalization of BNPL in Malaysia. The second impact is related to the economic aspect, which highlights changes in spending behavior, the changing perception of debt, financial management, and financial strain. Regulatory considerations fall under the third impact, which is the political impact. The last one shows BNPL’s psychological impact in terms of anxiety and guilt. Limitations of this study include a small sample size, with only five informants involved, which restricts generalizability. This study encourages future researchers to employ larger samples and implement quantitative methods to provide more detailed analysis. This study also recommends structured financial literacy programs to enhance users’ financial education and awareness about BNPL usage.

Suggested Citation

  • Nurnikman Podin & Nur Tasha Idayu Yusoff & Ng Rong Jie & Siti Nurbalqis Abd Halim & Nur Fatin Athirah Amran & Faizah Mohd Fakhruddin, 2025. "Exploring the Impacts of Buy Now, Pay Later (BNPL) Payment Method among Millennials and Generation Z in Malaysia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(6), pages 6488-6503, June.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-6:p:6488-6503
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    References listed on IDEAS

    as
    1. Qun Zhang & Hyungsoo Kim, 2019. "American Young Adults’ Debt and Psychological Distress," Journal of Family and Economic Issues, Springer, vol. 40(1), pages 22-35, March.
    2. Ismah Osman & Nur Afizah Muhamad Ariffin & Muhammad Farhan Naim Bin Mohd Yuraimie & Muhammad Faiz Bin Ali & Muhammad Aziz Farhan Bin Noor Akbar, 2024. "How Buy Now, Pay Later (BNPL) is Shaping Gen Z's Spending Spree in Malaysia," Information Management and Business Review, AMH International, vol. 16(3), pages 657-674.
    3. Robert Powell & Anh Do & Denise Gengatharen & Jaime Yong & Rasiah Gengatharen, 2023. "The relationship between responsible financial behaviours and financial wellbeing: The case of buy‐now‐pay‐later," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 4431-4451, December.
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