A Rose by Any Other Name: The Impact of Consumer Perceptions of Buy Now Pay Later on BNPL Use by Young Adults

This paper examines the relationship between consumers' perceptions of Buy Now Pay Later (BNPL) products and their subsequent usage patterns. Based on the literature on consumer perceptions, marketing strategies and financial product promotions, this study employs dual information processing theory as a lens for understanding how perceptions drive adoption and use of BNPL products. We employ ordered logistic regressions to analyze responses from a survey of young consumers aged 18-34 in New Zealand conducted via Qualtrics to assess the impact of consumer perceptions of BNPL, consumers’ use of BNPL, whether consumers borrow to repay BNPL debt, and their frequency of incurring late fees. The main findings suggest that consumer acceptance of the attractive features of BNPL appears to mask the financial risks involved, resulting in greater use and use consistent with impulse purchasing and possible subsequent debt accumulation.