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

Abstract

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.