Can financial literacy break gen z's BNPL-Fueled impulse buying habit for a more sustainable future?

Abstract

The study examines the relationship among financial literacy, the adoption of Buy Now Pay Later (BNPL) services and impulsive purchasing behavior of Generation Z. Data were collected through a survey of individuals aged 18 - 28 in the Mekong Delta. The study employs PLS-SEM analysis to demonstrate that increased financial literacy decreases the tendency to utilize BNPL services and impulsive purchasing behavior; conversely, the use of BNPL encourages impulsive buying, with BNPL acting as a mediating factor in the relationship between financial literacy and impulsive behavior. The findings highlight the importance of financial literacy and the prudent design of BNPL services to mitigate impulsive spending behaviors. From this study, scholars obtain a profound comprehension of consumer behavior amid the rising popularity of BNPL, while policymakers, marketers and advocates gain practical insights to promote sustainable consumer practices in the FinTech landscape.