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The relationship between responsible financial behaviours and financial wellbeing: The case of buy‐now‐pay‐later

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  • Robert Powell
  • Anh Do
  • Denise Gengatharen
  • Jaime Yong
  • Rasiah Gengatharen

Abstract

Buy‐now‐pay‐later (BNPL) in Australia is a rapidly growing payment innovation. Regulators and consumer groups have expressed concerns at the financial risks posed by BNPL. As BNPL is not regulated under consumer credit law, financial regulator and consumer groups have recommended that BNPL users adopt a range of responsible financial behaviours for their financial wellbeing. This study, using a survey of BNPL users and structural equation modelling, shows a link between most of these recommended financially responsible behaviours and financial wellbeing and that the financial behaviours of younger users (aged under 25) place them at greater risk of reduced financial wellbeing.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:acctfi:v:63:y:2023:i:4:p:4431-4451
    DOI: 10.1111/acfi.13100
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    1. Filotto, Umberto & Salerno, Dario & Sampagnaro, Gabriele & Stella, Gian Paolo, 2024. "Riding the wave of change: Buy now, pay later as a disruptive threat to payment cards in the global market," Research in International Business and Finance, Elsevier, vol. 72(PA).

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