Factors Influencing Buy Now, Pay Later Usage Intention Among Gen Z Consumers in Malaysia: An Empirical Investigation

Abstract

The rapid expansion of Buy Now, Pay Later (BNPL) services has transformed consumer payment practices and increased access to deferred payment facilities, particularly among digitally engaged Generation Z (Gen Z) consumers. However, empirical evidence regarding the factors associated with BNPL usage intention remains inconsistent, particularly concerning financial literacy and perceived risk, while the role of materialism warrants further examination within the Malaysian Gen Z context. Accordingly, this study examines the relationships of materialism, financial literacy, social influence, and perceived risk with BNPL usage intention among Gen Z consumers in Malaysia. A quantitative, cross-sectional survey design was employed using purposive sampling. Data were collected through an online self-administered questionnaire from Malaysian Gen Z age definition of 14–29 years; who had previous experience using BNPL services however, the final analysed sample comprised respondents aged 18–29 years. After data screening, 405 valid responses were retained for analysis. The data were analysed using frequency analysis, descriptive statistics, reliability analysis, Pearson correlation analysis, analysis of variance (ANOVA), and multiple linear regression using SPSS. The results indicate that materialism and social influence are positively associated with BNPL usage intention, whereas financial literacy and perceived risk are negatively associated with BNPL usage intention. The multiple regression results indicate that the proposed predictors collectively explain a substantial proportion of variance in BNPL usage intention. The findings contribute to the understanding of BNPL-related consumer behaviour among Malaysian Gen Z consumers by demonstrating that psychological, social, financial, and risk-related factors are associated with their intention to use BNPL services. The findings also provide implications for promoting more informed and responsible use of deferred payment services among young adult consumers.