IDEAS home Printed from https://ideas.repec.org/a/rnd/arimbr/v16y2024i3p657-674.html
   My bibliography  Save this article

How Buy Now, Pay Later (BNPL) is Shaping Gen Z's Spending Spree in Malaysia

Author

Listed:
  • Ismah Osman
  • Nur Afizah Muhamad Ariffin
  • Muhammad Farhan Naim Bin Mohd Yuraimie
  • Muhammad Faiz Bin Ali
  • Muhammad Aziz Farhan Bin Noor Akbar

Abstract

This study seeks to examine the determinants that impact the inclination to utilize Buy Now, Pay Later (BNPL) services, with an emphasis on the perspective of Generation Z. The study examines the relationships between materialism, money management skills, self-efficacy, attitude, subjective norm, perceived behavioral control, and moral obligation in determining the intention to adopt BNPL. It utilizes a quantitative approach with a descriptive research style. Questionnaires were distributed to the Gen Z demographic, and a total of 440 responses were collected using Google Forms. The data were gathered through comprehensive field research, which involved an online survey, and later examined using SmartPLS 4.0. The findings highlight the significance of materialism, money management abilities, self-confidence, attitude, subjective norm, perceived behavioral control, and moral obligation in influencing the utilization of BNPL. The outcomes are highly significant for both advancing theoretical understanding and improving practical operations for BNPL providers. It facilitates a comprehensive understanding of the elements that impact the propensity to utilize BNPL, particularly from the perspective of Generation Z. Although acknowledging the limitations of targeting only Gen-Z, the research offers interesting insights and practical recommendations for BNPL service providers.

Suggested Citation

  • 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.
    • Handle: RePEc:rnd:arimbr:v:16:y:2024:i:3:p:657-674
    DOI: 10.22610/imbr.v16i3(I)S.4092
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/4092/2655
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/4092
    Download Restriction: no
    File URL: https://libkey.io/10.22610/imbr.v16i3(I)S.4092?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alina Stankevich, 2017. "Explaining the Consumer Decision-Making Process: Critical Literature Review," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 2(6), pages 7-14, September.
    2. Hair, Joe F. & Howard, Matt C. & Nitzl, Christian, 2020. "Assessing measurement model quality in PLS-SEM using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 109(C), pages 101-110.
    3. Yadav, Rambalak & Pathak, Govind S., 2017. "Determinants of Consumers' Green Purchase Behavior in a Developing Nation: Applying and Extending the Theory of Planned Behavior," Ecological Economics, Elsevier, vol. 134(C), pages 114-122.
    4. Mehdi Sarikhani & Fahime Ebrahimi, 2021. "Whistleblowing by accountants: an integration of the fraud pentagon and the extended theory of planned behavior," Meditari Accountancy Research, Emerald Group Publishing Limited, vol. 30(6), pages 1740-1763, October.
    5. Last Mazambani & Emmanuel Mutambara, 2019. "Predicting FinTech innovation adoption in South Africa: the case of cryptocurrency," African Journal of Economic and Management Studies, Emerald Group Publishing Limited, vol. 11(1), pages 30-50, October.
    6. Khansa Zaman & Umer Iftikhar & Mahmood Rehmani & Huda Irshad, 2022. "Embracing biodegradable bags: effects of ethical self-identity on consumer buying behavior," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 19(3), pages 474-485, March.
    7. Dana Adriana Lupșa-Tătaru & Eliza Nichifor & Lavinia Dovleac & Ioana Bianca Chițu & Raluca Dania Todor & Gabriel Brătucu, 2023. "Buy Now Pay Later—A Fad or a Reality? A Perspective on Electronic Commerce," Economies, MDPI, vol. 11(8), pages 1-20, August.
    8. Xingwei Li & Jiachi Dai & Xiaowen Zhu & Jingru Li & Jinrong He & Yicheng Huang & Xiang Liu & Qiong Shen, 2023. "Mechanism of attitude, subjective norms, and perceived behavioral control influence the green development behavior of construction enterprises," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    9. Cindera Ika Putri Hegawan & Tjong Michaela Faustine & Shinta Wijayanti & Peri Akbar Manaf, 2023. "Exploring the influence of perceived usefulness and value of PayLater/BNPL on satisfaction, impulsive buying, and post-purchase intention," International Journal of Emerging Trends in Social Sciences, Asian Online Journal Publishing Group, vol. 15(1), pages 1-12.
    10. Zou, Yi & van Riel, Allard C.R. & Streukens, Sandra & Bloemer, José, 2023. "Wanted! Investigating how elements from the personal usage context affect Gen Z consumers' value-in-use experience and engagement with mobile service," Journal of Business Research, Elsevier, vol. 160(C).
    11. 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.
    12. repec:eme:mfppss:mf-08-2021-0386 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Duong Cong Doanh & Katarzyna Gadomska-Lila & Le Thi Loan, 2021. "Antecedents of green purchase intention: a cross-cultural empirical evidence from Vietnam and Poland," Oeconomia Copernicana, Institute of Economic Research, vol. 12(4), pages 935-971, December.
    2. Saari, Ulla A. & Damberg, Svenja & Frömbling, Lena & Ringle, Christian M., 2021. "Sustainable consumption behavior of Europeans: The influence of environmental knowledge and risk perception on environmental concern and behavioral intention," Ecological Economics, Elsevier, vol. 189(C).
    3. Hasnan Baber & N M Baki Billah, 2022. "Fintech and Islamic Banks - an integrative model approach to predict the intentions," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 24(2), pages 24-45, December.
    4. Cai Li & Hazrat Hassan & Majid Murad & Farhan Mirza, 2023. "Role of Green Dynamic Capabilities on Environmental and Social Innovation Behavior: Mediating of Green Creativity and Moderating of Innovation Proclivity," Sustainability, MDPI, vol. 15(20), pages 1-19, October.
    5. A. Irimia-Diéguez & F. Velicia-Martín & M. Aguayo-Camacho, 2023. "Predicting Fintech Innovation Adoption: the Mediator Role of Social Norms and Attitudes," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-23, December.
    6. Peter Ansu-Mensah, 2021. "Green product awareness effect on green purchase intentions of university students’: an emerging market’s perspective," Future Business Journal, Springer, vol. 7(1), pages 1-13, December.
    7. Cristopher Siegfried Kopplin & Theresa Maria Rausch, 2022. "Above and beyond meat: the role of consumers’ dietary behavior for the purchase of plant-based food substitutes," Review of Managerial Science, Springer, vol. 16(5), pages 1335-1364, July.
    8. Ruijie Zhu & Guojing Zhao & Zehai Long & Yangjie Huang & Zhaoxin Huang, 2022. "Entrepreneurship or Employment? A Survey of College Students’ Sustainable Entrepreneurial Intentions," Sustainability, MDPI, vol. 14(9), pages 1-15, May.
    9. Sadiq, Muhammad & Nawaz, Muhammad Atif & Sharif, Arshian & Hanif, Sobia, 2024. "Bridging green supply chain practices and environmental performance in Chinese semiconductor sector: With the role of energy efficiency and green HRM," International Journal of Production Economics, Elsevier, vol. 277(C).
    10. Andreas Falke & Nadine Schröder & Claudia Hofmann, 2022. "The influence of values in sustainable consumption among millennials," Journal of Business Economics, Springer, vol. 92(6), pages 899-928, August.
    11. Matteo Migheli, 2021. "Green purchasing: the effect of parenthood and gender," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(7), pages 10576-10600, July.
    12. Mai Mostafa Awad & Abd‘Elazez Hashem & Hend Mohamed Naguib, 2022. "The Impact of Lean Management Practices on Economic Sustainability in Services Sector," Sustainability, MDPI, vol. 14(15), pages 1-27, July.
    13. Sabakun Naher Shetu, 2025. "Determinants of generation Z consumers’ mobile online shopping apps continuance intention to use during COVID-19 and beyond—an empirical study," Future Business Journal, Springer, vol. 11(1), pages 1-18, December.
    14. Nketiah, Emmanuel & Song, Huaming & Cai, Xiang & Adjei, Mavis & Adu-Gyamfi, Gibbson & Obuobi, Bright, 2022. "Citizens’ intention to invest in municipal solid waste to energy projects in Ghana: The impact of direct and indirect effects," Energy, Elsevier, vol. 254(PC).
    15. Osakwe, Christian Nedu & Ogunmokun, Oluwatobi A. & Elgammal, Islam & Kwarteng, Michael Adu, 2025. "Individuals' attitudes and their adoption intentions of central bank digital currency: Combining theories and analytics for deeper insights," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    16. Hayford Asare Obeng & Richard Arhinful & Leviticus Mensah & Jerry Seth Owusu-Sarfo, 2024. "Assessing the Influence of the Knowledge Management Cycle on Job Satisfaction and Organizational Culture Considering the Interplay of Employee Engagement," Sustainability, MDPI, vol. 16(20), pages 1-28, October.
    17. Rambabu Lavuri & Abhinav Jindal & Umair Akram & Bhukya Koteswara Rao Naik & Alrence Santiago Halibas, 2023. "Exploring the antecedents of sustainable consumers' purchase intentions: Evidence from emerging countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 280-291, February.
    18. Morais, Ana Catarina & Ishida, Akira & Matsuda, Ruriko, 2024. "Ethical food consumption drivers in Japan. A S–O-R framework application using PLS-SEM with a MGA assessment based on clustering," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    19. Kautish, Pradeep & Paço, Arminda & Thaichon, Park, 2022. "Sustainable consumption and plastic packaging: Relationships among product involvement, perceived marketplace influence and choice behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    20. Zhikun Ding & Xinyue Huang & Xinrui Wang & Qiaohui Chen & Jiasheng Zhang & Zezhou Wu, 2024. "Investigating the Determinants of Construction Stakeholders’ Intention to Use Construction and Demolition Waste Recycling Products Based on the S-O-R Model in China," Sustainability, MDPI, vol. 16(6), pages 1-17, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arimbr:v:16:y:2024:i:3:p:657-674. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/imbr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.