Financial Well-Being: Indications on Buy Now Pay Later Users in Indonesia
DOI:
https://doi.org/10.22441/jdm.v8i2.34205Keywords:
Buy Nor Pay Later, Financial Knowledge, Financial Behavior, Self-Control, Financial Well-beingAbstract
Buy Now Pay Later (BNPL) is a payment method that allows consumers to purchase goods and pay for them later within a specified period. This study aims to explore the influence of financial knowledge, financial behavior, and self-control on the financial well-being of BNPL users in Indonesia, where the service is becoming increasingly popular, particularly among the younger generation. The research sample focuses on Millennials and Gen Z in Indonesia who have used BNPL services in the past six months. The analytical tool used is Partial Least Squares-Structural Equation Modeling (PLS-SEM) based on SmartPLS. The results indicate that while financial knowledge is only meaningful when mediated by financial behaviour, financial behaviour and self-control have a beneficial impact on financial well-being. These findings highlight the importance of financial education and the role of BNPL providers in offering features such as payment reminders and credit limits to support users' financial well-being.Downloads
References
AFTECH. (2021). Handbook Fintech Untuk Keuangan Pribadi. Asosiasi Fintech Indonesia, 1–51. https://fintech.id/dokumen/handbook-fintech-untuk-umkm-2021
Antonides, G., Manon de Groot, I., & Fred van Raaij, W. (2011). Mental budgeting and the management of household finance. Journal of Economic Psychology, 32(4), 546–555. https://doi.org/10.1016/j.joep.2011.04.001
Benítez-Márquez, M. D., Sánchez-Teba, E. M., Bermúdez-González, G., & Núñez-Rydman, E. S. (2022). Generation Z Within the Workforce and in the Workplace: A Bibliometric Analysis. Frontiers in Psychology, 12(February), 1–16. https://doi.org/10.3389/fpsyg.2021.736820
Chen, F., Yu, D., & Sun, Z. (2023). Investigating the associations of consumer financial knowledge and financial behaviors of credit card use. Heliyon, 9(1). https://doi.org/10.1016/j.heliyon.2022.e12713
Comerton-Forde, C., Ip, E., Ribar, D. C., Ross, J., Salamanca, N., & Tsiaplias, S. (2018a). Using Survey and Banking Data to Measure Financial well-being Using Survey and Banking Data to Measure Financial well-being Commonwealth Bank of Australia and Melbourne Institute Financial well-being Scales. Applied Economic & Social Research, 1.
Comerton-Forde, C., Ip, E., Ribar, D. C., Ross, J., Salamanca, N., & Tsiaplias, S. (2018b). Using Survey and Banking Data to Measure Financial well-being Using Survey and Banking Data to Measure Financial well-being Commonwealth Bank of Australia and Melbourne Institute Financial well-being Scales. Applied Economic & Social Research, 1. https://fbe.unimelb.edu.au/__data/assets/pdf_file/0005/2839433/CBA_MI_Tech_Report_No_1_Chapters_1_to_6.pdf
Eberhardt, W., Brüggen, E., Post, T., & Hoet, C. (2021). Engagement behavior and financial well-being: The effect of message framing in online pension communication. International Journal of Research in Marketing, 38(2), 448–471. https://doi.org/10.1016/j.ijresmar.2020.11.002
Financial, C., & Bureau, P. (2021). scale. 43(2), 134–140.
Fred van Raaij, W., Riitsalu, L., & Põder, K. (2023). Direct and indirect effects of Self Direct and indirect effects of self -control and future time perspective on financial well-being. Journal of Economic Psychology, 99. https://doi.org/10.1016/j.joep.2023.102667
Gerrans, P., Baur, D. G., & Lavagna-Slater, S. (2022). Fintech and responsibility: Buy-now-pay-later arrangements. Australian Journal of Management, 47(3), 474–502. https://doi.org/10.1177/03128962211032448
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2019). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage Publications. https://doi.org/10.1108/IntR-10-2018-0447
Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: updated guidelines. Industrial Management & Data Systems. https://doi.org/10.1108/IntR-10-2018-0447
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
IDXChannel.com. (2025). Gen Z dan Millennial Paling Doyan Pakai Paylater, Rata-Rata Utang Rp 855 Ribu. Yahoo Finance. https://www.idxchannel.com/milenomic/gen-z-dan-milenial-paling-doyan-pakai-paylater-rata-rata-utang-rp855-ribu/all
Lupșa-Tătaru, D. A., Nichifor, E., Dovleac, L., Chițu, I. B., Todor, R. D., & Brătucu, G. (2023). Buy Now Pay Later—A Fad or a Reality? A Perspective on Electronic Commerce. Economies, 11(8). https://doi.org/10.3390/economies11080218
Powell, R., Do, A., Gengatharen, D., Yong, J., & Gengatharen, R. (2023). The relationship between responsible financial behaviours and financial well-being: The case of buy-now-pay-later. Accounting and Finance, 63(4), 4431–4451. https://doi.org/10.1111/acfi.13100
Rahman, M., Isa, C. R., Masud, M. M., Sarker, M., & Chowdhury, N. T. (2021). The role of financial behaviour, financial literacy, and financial stress in explaining the financial well-being of B40 group in Malaysia. Future Business Journal, 7(1). https://doi.org/10.1186/s43093-021-00099-0
Siswanti, I., & Halida, A. M. (2020). Self-control As Mediating. The International Journal of Accounting and Business Society, 28(01), 105–131.
Strömbäck, C., Lind, T., Skagerlund, K., Västfjäll, D., & Tinghög, G. (2017). Does self-control predict financial behavior and financial well-being? Journal of Behavioral and Experimental Finance, 14, 30–38. https://doi.org/10.1016/j.jbef.2017.04.002
Strömbäck, C., Skagerlund, K., Västfjäll, D., & Tinghög, G. (2020). Subjective self-control but not objective measures of executive functions, predicts financial behavior and well-being. Journal of Behavioral and Experimental Finance, 27. https://doi.org/10.1016/j.jbef.2020.100339
Tang, N. (2021). Cognitive abilities, self-efficacy, and financial behavior. Journal of Economic Psychology, 87(July), 102447. https://doi.org/10.1016/j.joep.2021.102447
Tangney, J. P., Baumeister, R. F., & Boone, A. L. (2004). Tangney, Baumeister and Boone (2008)_High Self‐Control Predicts Good Adjustment, Less Pathology, Better Grades, and Interpersonal Success. Journal of Personality, 2(April 2004), 54.
Yahoo Finance. (2024). Laporan Bisnis Beli Sekarang Bayar Nanti di Indonesia 2024: Pembayaran BNPL Tumbuh 16,3% dan Capai $7,57 Miliar Tahun Ini - Prakiraan hingga 2029. https://finance.yahoo.com/news/indonesia-buy-now-pay-later-093800370.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAIniwptQrnTZ7PRoprRhjWCFNUa9EUb3De3x92XvaOsjqnBYC_WHJgBBLLk-7GUXFXPJl-ZgJy6KA7LGnfRzrit7InkXwU6nEC4l
Downloads
Published
How to Cite
Issue
Section
License
The copyright of this article was transferred to Universitas Mercu Buana if and when the article was accepted for publication. The undersigned below transfers all and all rights in and to paper including without limitation all copyright to UMB. The undersigned states and guarantees that the paper is genuine and that he is the author of the paper, except material that is clearly identified as the original source, with the notification of the permission of the copyright owner if necessary and has the power and authority to make and carry out this assignment. We state that this paper has not been published in the same form elsewhere.
Furthermore, I / We hereby transfer unlimited publicity rights to the above mentioned papers as a whole to Universitas Mercu Buana. Copyright transfers include the right to reproduce and distribute articles, including reprints, translations, photo reproductions, microforms, electronic forms offline and online or other reproductions that have similar properties. The appropriate author signs and accepts the responsibility for releasing this material on behalf of each and all co-authors. This agreement must be signed by at least one of the authors who has obtained approval from the co-author (s) where applicable.
After the submission of this agreement is signed by the appropriate author, changes in authorship or in the order of the registered author will not be accepted. Retained Rights or Provisions and Conditions Although the author is permitted to reuse all or part of the Work in another work, this does not include giving a third party request for reprinting, republishing, or any other type of reuse.
