Antecedents Influencing the Intention to Use Buy Now Pay Later (BNPL) for Online Payment among Generation Z

Ng, Winnie Rujin (2025) Antecedents Influencing the Intention to Use Buy Now Pay Later (BNPL) for Online Payment among Generation Z. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

This research examines the antecedents influencing Generation Z’s (Gen Z) intention to use Buy Now Pay Later (BNPL) services for online payment in Malaysia, a fast-growing fintech solution reshaping consumer spending. As digital natives, Gen Z exhibit unique financial behaviors shaped by convenience, peer influence, and trust in technology. Drawing on the Theory of Planned Behavior (TPB) and the Stimulus–Organism–Response (SOR) framework, the study investigates how perceived behavioral control, subjective norm, and trust influence attitudes toward BNPL, and how these attitudes drive intention to use. The study further explores the moderating role of financial literacy in strengthening the relationship between attitude and intention, providing insights for financial service providers, policymakers, and educators seeking to promote responsible fintech usage among young consumers. A quantitative approach was employed, with data collected through online surveys from 386 Gen Z respondents in Malaysia. The results reveal that perceived behavioral control, subjective norm, and trust significantly predict attitudes toward BNPL, while attitude strongly influences intention to use. Mediation analysis confirms that attitude mediates the relationship between these predictors and intention, highlighting its central role in fintech adoption. Moreover, financial literacy significantly moderates the attitude–intention relationship, indicating that higher financial literacy enhances the likelihood of translating favorable attitudes into actual adoption behavior. This study contributes theoretically by extending TPB and SOR frameworks through the integration of financial literacy as a moderating construct in the fintech adoption context. The findings underscore that both psychological evaluations and individual capabilities are crucial in shaping Gen Z’s adoption of BNPL. Practically, the study offers actionable recommendations for BNPL providers and regulators, including embedding financial education tools into platforms, enhancing transparency in repayment structures, and promoting responsible spending habits. Such measures can foster trust, safeguard consumers from financial risks, and encourage sustainable growth in the BNPL market. In conclusion, this study affirms that attitudes, shaped by perceived behavioral control, subjective norm, and trust, are central to Gen Z’s intention to adopt BNPL. By addressing both cognitive and capability-based factors, organizations and policymakers can encourage responsible adoption, ensuring that BNPL evolves as an inclusive, sustainable, and consumer-friendly financial service.