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Sustainable Development through Fintech: Understanding the Adoption of Buy Now Pay Later (BNPL) Applications by Generation Z in Saudi Arabia

Author

Listed:
  • Salma S. Abed

    (Department of Management Information Systems, College of Business, King Abdulaziz University, Rabigh 21589, Saudi Arabia)

  • Rotana S. Alkadi

    (Finance Department, College of Business, King Abdulaziz University, Rabigh 21589, Saudi Arabia)

Abstract

Sustainable development has emerged as a paramount priority globally, with the fintech services playing a crucial role in achieving these goals. Although previous research has explored consumer perceptions of novel fintech services, including Buy Now Pay Later (BNPL) applications, there remains a knowledge gap regarding the factors influencing adoption among young consumers. This study addresses this limitation by investigating the determinants of BNPL app usage among Saudi Arabian Generation Z consumers, integrating the Unified Theory of Acceptance and Use of Technology and DeLone and McLean’s Information Systems Success model. A survey of 380 BNPL app consumers from Generation Z was conducted, and their responses were analyzed using structural equation modeling. The findings reveal that performance expectancy, effort expectancy, and social influence positively impact the intention to continue using BNPL apps. Furthermore, system quality, service quality, and information quality exhibit significant correlations with satisfaction within the IS Success model. The study’s outcomes are expected to inform app developers in designing effective apps that engage digital-native consumers and provide policymakers with insights to enhance fintech services. This research contributes significantly to the existing body of knowledge on fintech adoption, intentions, and satisfaction.

Suggested Citation

  • Salma S. Abed & Rotana S. Alkadi, 2024. "Sustainable Development through Fintech: Understanding the Adoption of Buy Now Pay Later (BNPL) Applications by Generation Z in Saudi Arabia," Sustainability, MDPI, vol. 16(15), pages 1-19, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:15:p:6368-:d:1442653
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    References listed on IDEAS

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    1. Adel Bessadok & Hisham Bardesi, 2023. "Exploring Human Values and Students’ Aspiration in E-Learning Adoption: A Structural Equation Modeling Analysis," Sustainability, MDPI, vol. 15(19), pages 1-21, September.
    2. Sagir Danladi & M. S. V. Prasad & Umar Muhammad Modibbo & Seyedeh Asra Ahmadi & Peiman Ghasemi, 2023. "Attaining Sustainable Development Goals through Financial Inclusion: Exploring Collaborative Approaches to Fintech Adoption in Developing Economies," Sustainability, MDPI, vol. 15(17), pages 1-14, August.
    3. Salma Abed, 2018. "An empirical examination of Instagram as an s-commerce channel," Journal of Advances in Management Research, Emerald Group Publishing Limited, vol. 15(2), pages 146-160, April.
    4. Xin Huang & Hui Zhi, 2023. "Factors Influencing Students’ Continuance Usage Intention with Virtual Classroom during the COVID-19 Pandemic: An Empirical Study," Sustainability, MDPI, vol. 15(5), pages 1-13, March.
    5. Suhrab, Muhammad & Chen, Pinglu & Ullah, Atta, 2024. "Digital financial inclusion and income inequality nexus: Can technology innovation and infrastructure development help in achieving sustainable development goals?," Technology in Society, Elsevier, vol. 76(C).
    6. Salma Abed, 2018. "An empirical examination of Instagram as an s-commerce channel," Journal of Advances in Management Research, Emerald Group Publishing Limited, vol. 15(2), pages 146-160, April.
    7. Pritham Pattamatta & Shaunak S. Dabadghao, 2022. "Models for Point-of-Sale (POS) Market Entry," FinTech, MDPI, vol. 1(4), pages 1-7, October.
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    Cited by:

    1. Farhan Furqan & Christian Haposan Pangaribuan & Santo Tjhin & Calista Luhur, 2025. "Buy now, pray later? Demystifying unrestrained spending in the age of BNPL," Jurnal Siasat Bisnis, Management Development Centre (MDC) Department of Management, Faculty of Business and Economics Universitas Islam Indonesia, vol. 29(1), pages 15-26.

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