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Subject: search.filters.subject.Buy Now Pay Later (BNPL)

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    Unlocking the Power of Buy Now Pay Later (BNPL) Apps: How Attitude Shapes Gen Z's Impulsive Buying in Sri Lankan Online Clothing Market in the Western Province
    (Department of Marketing Management, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Kandewaththa, K. H. A.; Karunanayake, R. K. T. D.
    This study explores the relationship between intention to use Buy Now Pay Later (BNPL) services and impulse buying behavior among Generation Z consumers engaged in online retail clothing purchases in Sri Lanka’s Western Province. The research is particularly relevant in developing economies where BNPL has emerged as an alternative payment method, offering financial flexibility to young consumers. In this context, attitude serves as a mediating variable, shaping the link between BNPL adoption and impulsive buying tendencies. The study is grounded in the Unified Theory of Acceptance and Use of Technology (UTAUT) framework, assessing how performance expectancy, effort expectancy, social influence, and facilitating conditions drive BNPL adoption and its subsequent impact on impulse buying behavior. A quantitative research design was adopted, with 427 Generation Z respondents selected via convenience sampling from Sri Lanka’s digital payment user base. Data was gathered through an online structured questionnaire and analyzed using IBM SPSS, employing descriptive statistics, correlation analysis, and multiple linear regression to test the hypotheses. Reliability and validity tests ensured the robustness of the findings. Results indicate that attitude significantly mediates the relationship between BNPL services and impulse buying behavior. Consumers who perceive BNPL as a convenient and low-risk payment method exhibit higher impulsive buying tendencies. Moreover, Generation Z consumers demonstrate a strong awareness of BNPL services, with their adoption linked to payment flexibility, which encourages impulse-driven purchases. These findings align with trends observed in Western markets while also highlighting unique cultural and economic characteristics specific to Sri Lanka. Despite its contributions, the study has certain limitations. It relies on self-reported data, which may introduce social desirability bias. Furthermore, its focus on the online retail clothing industry and the Western Province restricts the generalizability of findings to other regions and industries. From a practical perspective, the study provides valuable insights for online retailers and BNPL providers, suggesting the need to refine marketing strategies that appeal to Generation Z consumers while promoting the responsible use of BNPL services. From a theoretical standpoint, this research advances the understanding of payment systems and consumer behavior in emerging economies, particularly the role of BNPL in shaping impulse buying tendencies. For policymakers, the study underscores the importance of consumer protection measures to ensure ethical and sustainable BNPL adoption. Future research should explore cross-cultural and cross-industry perspectives, as well as longitudinal trends in BNPL usage, to better understand its evolving impact on consumer behavior.
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    The Impact of Buy Now Pay Later (BNPL) Payment Methods on Impulsive Buying Behavior: The Moderating Role of Financial Literacy in the Context of E-Commerce Platforms in Sri Lanka
    (Department of Marketing Management, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Abeysundara, R. H. J. D.; Udovita, P. V. M. V. D.
    With the rapid adoption of Buy Now Pay Later (BNPL) payment methods in Sri Lanka’s e-commerce sector, this study examines their impact on impulsive buying behavior, focusing on the moderating role of financial literacy. While BNPL services provide financial flexibility and convenience, they also encourage impulsive spending by lowering perceived financial barriers. However, the extent to which financial literacy mitigates these tendencies remains underexplored, particularly in emerging economies. Grounded in the Theory of Planned Behavior (TPB) and the Technology Acceptance Model (TAM), this study investigates the behavioral drivers behind BNPL adoption and impulsive buying tendencies. It also considers Sri Lanka’s unique socio-economic and cultural factors that influence consumer behavior. The findings provide insights for policymakers, e-commerce platforms, and financial institutions to promote responsible BNPL usage and financial education initiatives. This study adopts a deductive approach and an explanatory research design, drawing from TPB and TAM frameworks. Data were collected through a structured questionnaire administered to 385 respondents who had used BNPL services for online purchases within the past six months. Convenience sampling was used, and statistical analyses—including correlation and regression—were conducted using SPSS. Descriptive statistics, reliability analysis, and multiple regression techniques were employed to examine the relationships between BNPL usage, impulsive buying behavior, and financial literacy. The results confirm a significant positive relationship between BNPL payment methods and impulsive buying behavior. Consumers who frequently use BNPL services exhibit higher impulsive buying tendencies due to reduced perceived financial barriers, immediate gratification, and ease of deferred payments. Promotional offers, seamless checkout experiences, and psychological perceptions of affordability further drive this behavior. However, financial literacy moderates this relationship, with financially literate consumers demonstrating better control over their purchases and a heightened awareness of the long-term financial implications of BNPL usage. While financial literacy does not entirely eliminate impulsive buying tendencies, it significantly reduces their frequency and intensity. The study also highlights Sri Lanka-specific socio-economic factors, such as limited credit card penetration, varying levels of financial education, and cultural attitudes toward debt, which shape consumer behavior differently from developed markets. The study is subject to several limitations. The reliance on convenience sampling may introduce bias and limit the generalizability of findings. Additionally, the cross-sectional design prevents tracking long-term behavioral changes. Self-reported data may lead to response bias, as participants could overstate or understate their financial behaviors. Moreover, the study does not consider external macroeconomic factors, such as inflation, interest rates, or financial regulations, which could impact BNPL adoption and impulsive buying behavior. Theoretically, this study contributes to the BNPL and consumer behavior literature by integrating financial literacy as a moderating factor. Practically, the findings provide actionable insights for policymakers, e-commerce platforms, and financial institutions. To mitigate impulsive buying behavior, financial education initiatives should be integrated into digital financial services. BNPL providers should ensure transparent marketing strategies, helping consumers make informed purchasing decisions. Businesses can develop targeted consumer protection policies to encourage responsible BNPL usage while maintaining a balance between consumer spending and financial well-being. Future studies should employ probability sampling with a larger, more diverse sample to enhance generalizability. Additionally, longitudinal research would provide insights into how regulatory changes, technological advancements, and evolving consumer preferences influence BNPL adoption and impulsive buying trends over time. Exploring cross-cultural variations in BNPL usage could further enrich the understanding of its impact on consumer behavior globally.
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    Exploring the Impact of Fintech Literacy, Smart BNPL Solutions (Koko App and Credit Cards), and Financial Wellbeing on Consumer Buying Behavior in the Colombo District, Sri Lanka
    (Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Wanigasuriya, W. D. H. D.; Perera, L. A. S.
    Introduction: This study investigates the impact of Fintech literacy, smart BNPL solutions (Koko App and credit cards), and financial wellbeing on consumer buying behavior in the Colombo district, Sri Lanka. This research highlights how these variables impact consumer behavior. Methodology: The research employs a quantitative methodology, using structured questionnaires to collect data from 419 respondents within the Colombo district. Key variables—Fintech literacy, smart BNPL solutions (Koko App and credit cards), financial wellbeing, and consumer buying behavior—were measured using validated scales. Statistical techniques, including correlation and regression analyses, were applied to evaluate the impact of the independent variables on dependent variables and test the proposed hypotheses. Findings: The study reveals significant positive impact of independent variables on consumer buying behavior. Smart BNPL solutions (Koko App and credit cards), Fintech literacy, and financial wellbeing are positively impacting consumer buying behavior, demonstrating that increased financial knowledge and stability promote responsible financial decisions. Conclusion: This research underscores the pivotal role of Fintech literacy, BNPL adoption, and financial wellbeing in shaping consumer purchasing decisions. The findings provide actionable insights for policymakers, financial institutions, and educators to enhance the adoption and effectiveness of technology-driven financial solutions. Future studies could explore demographic influences, longitudinal trends, and psychological factors to build a more comprehensive understanding of consumer buying behavior in the digital financial landscape.