The Influence of User’s Digital Financial Literacy and Perceived Risks on Buy Now Pay Later (BNPL) Adoption: A Gender’s Perspective

This study examines how gender differences affect the decision to adopt BNPL (Buy Now Pay Later) services in Indonesia. In particular, the effect of these gender differences will be seen through the user’s perception of risk and the level of users’ digital financial literacy on their decision to adopt credit online paylater services. This study surveys 257 paylater users in Indonesia through various online channels. Subsequently, the data collected from the survey is processed and analyzed using PLS Smart 3.0. This study found that while users’ perceived risk does not significantly influence BNPL adoption, users’ digital financial literacy significantly influences BNPL adoption. Moreover, when we divide paylater users into two groups, male and female, the significant effects of financial literacy on BNPL adoption are experienced by both groups. Interestingly, however, the results also show that the magnitude of the influences of digital financial literacy on BNPL adoption is higher for females than for males, although the gap is relatively narrow due to insignificant differences in the two groups’ educational backgrounds. These gender differences in the impact of digital financial literacy on BNPL adoption may be caused by the fact that females tend to be responsible for household financial management. In addition, this study also reveals that in both gender groups. At the same time, both perceived financial risk and perceived security risk have a significant influence on users’ perceived risks, and the former has a more significant influence on perceived risk than the latter.