BUY NOW, PAY LATER OR PAIN LATER? A QUALITATIVE STUDY ON THE ADOPTION OF BNPL AND FINANCIAL RISKS AMONG GENERATION Z CONSUMERS IN KLANG VALLEY

Abstract

This study examines the adoption of Buy Now, Pay Later (BNPL) services among Generation Z consumers in Klang Valley, Malaysia, focusing on psychological, social, and
financial drivers. A thematic analysis of semi-structured interviews with 12 participants, aged 18 to 25, reveals key factors influencing BNPL usage, including instant gratification and Fear of Missing Out (FOMO) as primary psychological motivators. Social factors, particularly peer influence and social media exposure, were also identified as significant in shaping consumer behaviour. Financial vulnerabilities, such as regret over impulsive purchases and difficulties managing repayments, were noted as frequent consequences, often leading to debt accumulation. Furthermore, a lack of financial literacy was observed, with participants expressing limited understanding of BNPL terms and long-term financial implications. These findings suggest the need for enhanced regulatory frameworks and consumer education programmes, advocating for clearer disclosures and targeted financial literacy initiatives to promote responsible BNPL use among vulnerable youth.