Consumer Adoption of Buy Now Pay Later (BNPL): Awareness, Influencing Factors, and Perceived Risks

Author(s): Rahul Kumar

Abstract:

Buy Now Pay Later (BNPL) has emerged as one of the fastest-growing modes of consumer credit across the world, allowing shoppers to purchase goods and services immediately while deferring payment over a short, typically interest-free instalment period. Positioned as a simpler and more transparent alternative to traditional credit cards, BNPL has been rapidly integrated into e-commerce checkouts, retail applications, and even offline point-of-sale systems by providers such as Klarna, Afterpay, Affirm, and, in the Indian context, players such as Simpl, LazyPay, and various bank-led BNPL products. This study, titled “Buy Now Pay Later (BNPL): Consumer Adoption,” examines the level of awareness of BNPL services among consumers, the factors that drive or discourage its adoption, usage patterns across demographic groups, and the risks associated with its growing popularity, particularly among younger and first-time credit users. Primary data was collected from 100 respondents through a structured questionnaire and analysed using percentage analysis. The findings indicate that convenience, interest-free short-term credit, and ease of checkout integration are the strongest drivers of adoption, while fear of overspending, hidden late fees, and impact on credit scores remain the primary deterrents. The study concludes with suggestions for BNPL providers, regulators, and consumers to ensure that this innovative credit model develops in a sustainable and responsible manner.

keywords:
BNPL, Perceived Risks, Influencing Factors

Pages: 35-39     |    29 View     |    1 Download