Consumers’ intention to use Buy Now, Pay Later: A behavioral reasoning perspective on reasons for and against its use

Details

Supervisors

Hazée, Simon

Faculty

Louvain School of Management

Degree label

Master [120] : ingénieur de gestion, à finalité spécialisée

Abstract

enBuy Now, Pay Later (BNPL) has become an increasingly prominent form of short-term consumer credit, particularly in online retail environments. While BNPL is commonly presented as a convenient and interest-free payment solution, prior research also links its use to higher spending, repayment difficulties, debt-related and psychological concerns. Existing studies have mainly examined either the drivers of BNPL adoption or the consequences of BNPL use, but less attention has been given to how consumers evaluate reasons for and reasons against using BNPL simultaneously when forming their intention to use it. Drawing on Behavioral Reasoning Theory, this thesis examines how context-specific reasons for and against using BNPL are associated with consumers’ intention to use it in online shopping. A quantitative cross-sectional survey was conducted among adult consumers, and data from 289 respondents were analysed using hierarchical multiple regression. The results show that Perceived Affordability/Reduced Financial Constraints and Ease & Convenience were positive and significant predictors of intention to use BNPL, whereas Psychological Impact & Debt was a negative and significant predictor. Overspending was recognised as a potential risk but did not significantly predict intention once the other variables were included. Among the control variables, prior BNPL use was positively associated with intention, while current financial well-being was negatively associated with intention. This thesis contributes to BNPL adoption research by showing that consumers’ intention is shaped by both supportive and opposing reasons. In particular, debt-related and psychological concerns appear not only as consequences of BNPL use, but also as antecedents of consumers’ willingness to adopt the service. Overall, the findings suggest that BNPL’s long-term viability depends on balancing convenience and perceived financial flexibility with adequate consumer protection, particularly through clear and manageable repayment obligations.