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Exploring Platform Trust, Borrowing Intention, and Actual Use of PayLater Services in Indonesia and Malaysia

Author

Listed:
  • Tri Kartika Pertiwi

    (Department of Management, Universitas Pembangunan Nasional Veteran Jawa Timur, Surabaya 60294, Indonesia)

  • Corina Joseph

    (Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Sarawak, Samarahan 94300, Sarawak, Malaysia)

  • G. Oka Warmana

    (Department of Management, Universitas Pembangunan Nasional Veteran Jawa Timur, Surabaya 60294, Indonesia)

  • Fani Khoirotunnisa

    (Department of Management, Universitas Pembangunan Nasional Veteran Jawa Timur, Surabaya 60294, Indonesia)

  • Nanik Hariyana

    (Department of Management, Universitas Pembangunan Nasional Veteran Jawa Timur, Surabaya 60294, Indonesia)

Abstract

This study explores how system-based and cognitive-based factors affect platform trust and its role in the actual use of PayLater services (buy now, pay later or BNPL) in Indonesia and Malaysia. PayLater, a fintech innovation, provides fast and convenient payment options through online platforms. By incorporating platform trust into the technology acceptance model (TAM), the research investigates whether borrowing intention acts as a mediator between platform trust and actual usage. Utilizing a quantitative approach with purposive sampling, data were gathered from 106 respondents in Indonesia and 169 in Malaysia, with 62 and 85 respondents meeting the criteria, respectively. Partial least squares (PLS) analysis indicates notable differences in how Indonesian and Malaysian users perceive platform trust, while the effect of platform trust on borrowing intention remains consistent across both nations. Borrowing intention emerges as a crucial factor influencing the actual use of PayLater services. The results offer important insights into the adoption of fintech services in emerging markets, highlighting the significance of platform trust in shaping user behavior. This research provides practical suggestions for fintech providers to improve platform trust and user engagement in cross-country scenarios.

Suggested Citation

  • Tri Kartika Pertiwi & Corina Joseph & G. Oka Warmana & Fani Khoirotunnisa & Nanik Hariyana, 2025. "Exploring Platform Trust, Borrowing Intention, and Actual Use of PayLater Services in Indonesia and Malaysia," JRFM, MDPI, vol. 18(5), pages 1-23, May.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:5:p:255-:d:1651145
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    References listed on IDEAS

    as
    1. 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.
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    Cited by:

    1. Al-Sharafi, Mohammed A. & Alzaeemi, Shehab Abdulhabib & Albashrawi, Mousa & Dwivedi, Yogesh K. & Alahmad, Rasha & Chae, Inyoung, 2026. "A longitudinal consumer feedback analytics approach for theory building and testing: Examining consumer satisfaction and loyalty in buy now, pay later (BNPL) platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 88(C).

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