Convenience over cash: understanding why gen Z embrace buy now pay later

This study investigates the determinants influencing consumers’ intention to use Buy Now Pay Later (BNPL) applications, focusing on four constructs: perceived usefulness, perceived ease of use, social influence, and financial literacy. A quantitative method was conducted, and a survey was distributed to Gen Z in Malaysia. The purposive snowballing sampling techniques were applied to collect data. Data collected was analysed using the Structural Equation Model, Smart PLS 4.0. The data analysis assessed two models, the measurement and structural models. The measurement model results indicate that all the items used and tested meet the reliability and validity assessment. The findings reveal that perceived usefulness and social influence significantly and positively affect intention to use BNPL, highlighting the importance of functional benefits and peer or societal pressure in shaping consumer adoption behaviour. Conversely, perceived ease of use does not significantly influence intention, suggesting that users may prioritise value and social validation over system simplicity. Interestingly, financial literacy exhibits a negative relationship with intention, indicating that individuals with higher financial literacy are less inclined to adopt BNPL services due to greater awareness of potential debt risks. These results provide theoretical contributions by extending the Technology Acceptance Model (TAM) with financial literacy as a contextual variable and practical implications for fintech providers to balance convenience and consumer protection in promoting BNPL solutions.