MBA Thesis

Buy Now, Pay Later: Assessing the

Financial and Behavioral Implications
for Gen-Z Consumers in the USA

Avraam Mavridis
Feseha Gebeyehu

Supervisor
Maryna Brychko

Karlskrona, Sweden
This thesis is submitted to the Department of Industrial Economics at Blekinge Institute of
Technology in partial fulfilment of the requirements for the Degree of Master of Science in
Industrial Economics and Management. The thesis is awarded 15 ECTS credits.

The author(s) declare(s) that they have completed the thesis work independently. All
external sources are cited and listed under the References section. The thesis work has not
been submitted in the same or similar form to any other institution(s) as part of another
examination or degree.

Author information:
Avraam Mavridsis, avma21@student.bth.se

Feseha Gebeyehu, fege23@student.bth.se

Department of Industrial Economics

Blekinge Institute of Technology
SE-371 79 Karlskrona, Sweden

Website: www.bth.se
Telephone: +46 455 38 50 00
Fax: +46 455 38 50 57
Abstract

Background: The payment methods available to consumers for online purchases have
evolved over time, with options ranging from debit and credit cards to e-wallets like PayPal
and Apple Pay. Among these methods, Buy Now Pay Later (BNPL) has emerged as a
significant payment method alternative. At the same time the global debt had a record jump
between 2021 and 2022, with low-income households being the ones that suffer the most. The
convenience offered by BNPL payment method, coupled with the accelerated uptake of this
method in recent years, has created regulatory scrutiny concerning its contribution to the
financial health of the society.

Purpose: The purpose of this study is to explore the relation between BNPL and financial
wellbeing. The Generation Z cohort in the USA was specifically chosen as the target
demographic due to their pronounced online purchasing behaviors and the notable tripling of
their overall debt within the 2021-2022 period.

Methodology: A quantitative approach for collecting data and data analysis was conducted
using an online survey. The survey’s questions are influenced by previous research on
financial wellbeing and debt levels. The survey’s populations are consisting of 150
individuals from different demographic backgrounds. The survey’s results have been
analyzed by writing Python scripts and use relevant statistic libraries.

Results and analysis: A significant portion of the study's respondents, irrespective of various
demographic factors such as gender, education, and income level, answered that their use of
BNPL had little to no impact on their financial wellbeing. Of particular significance is the
answers of those familiar with BNPL who did not attribute any deterioration in their financial
health by using BNPL. A subset of respondents acknowledged the potential for BNPL to
cause overspending or regrettable purchases, but these sentiments were not predominant.
Such findings challenge the common belief that BNPL inherently distributes to financial
imprudence. However, nuances emerge when examining specific demographics. For instance,
male respondents and those with lower educational attainment displayed a slightly heightened
propensity to link BNPL with overspending.

Conclusions: The overarching narrative suggests that while BNPL might influence
purchasing behaviors to some extent, its direct impact on the broader financial wellbeing of
individuals is not conclusively negative.

Recommendations for future research: Future research can examine deeper behavioral
insights on the effects of BNLP, investigate its effects on specific industries (e.g. luxury
fashion) or examine global trends (given the present study is focused on USA).

Keywords: BNPL, Gen-Z, Impulsive spending, Overconsumption, Debt, Credit, Financial

Wellbeing

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Acknowledgements

We would like to thank our supervisor Maryna Brychko for her guidance throughout our
thesis work, as well as to examinator Trudy-Ann Stone and the opposing student Neeraj
Verma for their comments during the seminar presentation that helped us to improve our
essay.

We would like to express our gratitude to our families, spouses, and children for their
patience and support throughout the duration of the whole program.

September 2023

Avraam Mavridis, Berlin

Feseha Gebeyehu, Gothenburg

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Table of contents

INTRODUCTION .................................................................................................................................................. 2
Evolution and Impact of Online Payment Methods in E-Commerce .............................................................. 2
Gen-Z and the Rise of BNPL: Implications for Retail and Consumer Behavior ............................................ 4
RESEARCH QUESTIONS ......................................................................................................................................... 5
HYPOTHESIS ......................................................................................................................................................... 6
PREVIOUS RESEARCH ...................................................................................................................................... 9
INTRODUCTION ..................................................................................................................................................... 9
Gen-Z online shopping habits ......................................................................................................................... 9
The Rise and Implications of "Buy Now, Pay Later" Among Young Consumers ......................................... 10
The Interplay of Financial Wellbeing and Life Satisfaction: Insights from Various Studies ....................... 11
Financial literacy .......................................................................................................................................... 13
METHODOLOGY ............................................................................................................................................... 14
RESEARCH DESIGN ............................................................................................................................................. 15
PARTICIPANTS .................................................................................................................................................... 20
Potential Biases and Limitations .................................................................................................................. 21
Ethical and legal considerations .................................................................................................................. 21
Tools .............................................................................................................................................................. 22
Statistical analysis ........................................................................................................................................ 22
RESULTS AND ANALYSIS ............................................................................................................................... 24
Demographics of online shopping and BNPL utilization ............................................................................. 24
Motivations behind BNPL usage .................................................................................................................. 25
Financial wellbeing impact of BNPL ............................................................................................................ 25
Psychological and behavioral effects of BNPL ............................................................................................ 26
BNPL’s impact on decision-making.............................................................................................................. 27
Using BNPL for beyond-means purchases ................................................................................................... 28
Financial literacy as a aeterminant of BNPL financial impact .................................................................... 28
How familiarity and frequency of BNPL use influence consumer behavior ................................................. 29
DISCUSSIONS ..................................................................................................................................................... 31
Evaluation on Research Question 1.............................................................................................................. 31
Evaluation on Research Question 2.............................................................................................................. 32
Evaluation on Research Question 3.............................................................................................................. 32
Conclusion .................................................................................................................................................... 33
Future Research ............................................................................................................................................ 33
BIBLIOGRAPHY................................................................................................................................................. 35
APPENDIX ........................................................................................................................................................... 42
SURVEY QUESTIONS ........................................................................................................................................... 42
FIGURES.............................................................................................................................................................. 45

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List of Figures

Figure 1. Share of selected payment methods as percentage of total e-commerce transaction

volume worldwide. Source: Statista.com, June 2023 ________________________________ 3
Figure 2. Use of BNPL by Generation. source: www.marketingcharts.com, June 2023 _____ 4
Figure 3. Frequency of online shopping by Gender ________________________________ 45
Figure 4. Frequency of online shopping by Educational Level _______________________ 45
Figure 5. Frequency of online shopping by Employment Status ______________________ 46
Figure 6. Frequency of online shopping by Income Level ___________________________ 46
Figure 7. Frequency of using BNPL ____________________________________________ 47
Figure 8. Reasons of using BNPL by income level ________________________________ 48
Figure 9. Reasons of using BNPL by income level ________________________________ 48
Figure 10. Reasons of using BNPL by education level______________________________ 48
Figure 11. Reasons of using BNPL by employment status ___________________________ 49
Figure 12. Impact of BNPL on financial wellbeing by gender ________________________ 49
Figure 13. Impact of BNPL on financial wellbeing by educational level ________________ 49
Figure 14. Impact of BNPL on financial wellbeing by employment status ______________ 50
Figure 15. Impact of BNPL on financial wellbeing by income level ___________________ 50
Figure 16. Likelihood of overspend by gender ____________________________________ 50
Figure 17. Purchase regret by gender ___________________________________________ 51
Figure 18. Likelihood of overspend by education level _____________________________ 51
Figure 19. Purchase regret by education level ____________________________________ 51
Figure 20. Likelihood of overspend by employment status __________________________ 52
Figure 21. Purchase regret by employment status__________________________________ 52
Figure 22. Likelihood of overspend by income level _______________________________ 52
Figure 23. Purchase regret by income level ______________________________________ 53
Figure 24. Effects on purchase decision by gender _________________________________ 54
Figure 25. Effects on purchase decision by education level __________________________ 54
Figure 26. Effects on purchase decision by employment status _______________________ 54
Figure 27. Effects on purchase decision by income level ____________________________ 55
Figure 28. Using BNPL for purchases that were not affordable through other means, by
gender ___________________________________________________________________ 55
Figure 29. Using BNPL for purchases that were not affordable through other means, by
education level_____________________________________________________________ 55
Figure 30. Using BNPL for purchases that were not affordable through other means, by
employment status __________________________________________________________ 56
Figure 31. Using BNPL for purchases that were not affordable through other means, by
income level ______________________________________________________________ 56
Figure 32. Financial wellbeing in relation to familiarity of BNPL _____________________ 57
Figure 33. Likelihood of overspend in relation to familiarity of BNPL _________________ 57
Figure 34. Purchase regret in relation to familiarity of BNPL ________________________ 58
Figure 35. Purchase regret in relation to BNPL familiarity __________________________ 58

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List of abbreviations

BNPL Buy Now Pay Later

Gen-Z Generation Z (mid-to-late 1990s as starting birth years and the

early 2010s as ending birth years.)

CAGR Compound annual growth rate

eWOM electronic Word Of Mouth (passing of information from person

to person)

FOMO Fear Of Missing Out, the sensation of unease stemming from the
belief that one is either uninformed or excluded from significant
information, activities, or experiences

USA United States of America

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Introduction
Evolution and Impact of Online Payment Methods in E-Commerce
Online payments have experienced significant growth in the last two decades due
to several factors, including the mass adoption of e-commerce and the development
of new digital devices that make the purchase experience smoother. The release of
iPhone in combination with the faster network connections have accelerated the
trend (Ang, 2021). According to recent reports, the Global Payments as Service
market will be valued at more than $30 billion by 2028 with an expected compound
annual growth rate (CAGR) of 16.6% (ReportLinker, 2022). Technical
developments like the creation of safe online payment methods and mobile payment
platforms have made it simpler and more practical for customers to make purchases
online. The ubiquity of mobile payment systems, such as Apple Pay and Google
Wallet, has enabled individuals to purchase goods and services conveniently
through their smartphones with minimal effort, exemplifying the rapid
advancements in e-commerce. The Covid-19 pandemic has accelerated the
adoption of online shopping (Mathradas, 2020). A study by McKinsey showed an
11% increase in e-commerce adoption compared to pre-pandemic levels
(Mckinsey, 2021). In addition to countries where online shopping was already
widely accepted, the shifting to an e-commerce-first attitude also occurred in
societies where in-person purchasing is the norm (Unctad, 2022). Businesses and
customers alike have called for quicker, more practical, and more secure ways to
accept payments as online purchasing becomes more common, as a result, several
new payment methods have been developed, including mobile payments, digital
wallets, and cryptocurrencies (Ang, 2021). The payment methods that emerged
differed not only in the technical medium that is involved to make a transaction
happen but also in the financial terms of the transaction.

The payment methods that are available to consumers for online purchases, include
debit and credit cards, online banking transfers, mobile payment apps, e-wallets,
and Buy Now Pay Later (BNPL) options. Mobile payment apps and e-wallets, such
as PayPal and Apple Pay, are convenient options for those who prefer not to enter
their credit card information for every transaction and have become the most
popular payment method ( Figure 1). Another popular option is debit and credit
cards, that are widely accepted and convenient to use. Online banking transfers are
also becoming popular, especially among consumers hesitant to share their
financial information with third-party providers.

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Figure 1. Share of selected payment methods as percentage of total e-commerce transaction
volume worldwide. Source: Statista.com, June 2023

However, in recent years, BNPL has emerged as a popular payment option for
online shopping (Sands, 2022). BNPL allows consumers to purchase products and
pay for them over a set period, often with no interest or fees if payments are made
on time. BNPL is especially popular among younger consumers (see Figure 2), as
it allows them to spread out payments and make larger purchases without
immediate financial burden. BNPL is a development of conventional installment
plans that is integrated into the online store's payment process. It differs from other
types of consumer financing in that it enables consumers to purchase things without
paying the whole amount up front and that there is no paperwork to fill out or
waiting time. With the help of BNPL, consumers can divide a single purchase into
several installments that can be repaid over time and often at very little or no
interest. According to a PYMNTS study, approximately 60% of consumers have a
preference for BNPL over credit cards due to the convenience of making fixed
payments, the ease of obtaining approval, and the absence of interest fees
(PYMNTS, 2022).

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Figure 2. Use of BNPL by Generation. source: www.marketingcharts.com, June 2023

Consumer behavior has changed due to the move to online shopping and the
appearance of new payment options, including an increase in impulsive buying,
altered spending patterns, and adjustments to payment habits (Tamara Charm,
2020). Consumers are more prone to impulsive purchases and may be more
prepared to spend above their means since they have quick access to various
payment methods. Additionally, customers can now buy more items that they
would not have been able to afford without the help of payment plans like BNPL
(Gifford, 2020). This change in consumer behavior will significantly impact both
consumers and companies. It necessitates that companies modify their marketing
plans to consider shifting customer preferences, which might result in rising
consumer debt and financial risk.

When comparing different payment methods, there are several factors to consider.
Credit cards offer the advantage of rewards programs and purchase protection.
However, they also risk accumulating debt and paying interest if balances are not
paid in full. Debit cards and online banking transfers offer a more immediate
payment option but do not come with the same rewards or purchase protection as
credit cards. Mobile payment apps and e-wallets provide a convenient way to store
and use payment information but may not be accepted by all merchants. BNPL
offers the advantage of deferred payments but can come with fees and interest if
payments are not made on time.

Gen-Z and the Rise of BNPL: Implications for Retail and Consumer
Behavior
The distinctive traits, habits, and values of Gen-Z, which is quickly overtaking
Baby Boomers as the largest generation of customers, are altering the retail
industry. The conventional approach to marketing and customer behavior has

4
changed due to Gen-Z becoming a significant consumer. Gen-Z is the first
generation to truly be digital natives, having an unheard-before level of
connectedness and information availability. For companies attempting to connect
with Gen-Z, their expanding purchasing power and distinct beliefs, expectations,
and habits create both substantial difficulties and possibilities. The development of
BNPL payment methods has added a new dimension to Gen-Z shopping behavior,
a technologically sophisticated and significant consumer group. This generation is
defined by several key qualities. These include valuing individual creativity and
inclusion, making practical decisions based on analysis, prioritizing access over
possession, and caring deeply about social and environmental issues. In this
context, BNPL denotes a new avenue for Gen-Z consumers to access products and
services in a way that aligns with their core behaviors. By allowing customers to
delay payments and spreading them over time, BNPL can enhance affordability and
convenience, reduce financial anxiety, and foster experimentation and exploration
of new products.

Therefore, it is essential to explore the impact of BNPL on the online consumer

habits of Gen-Z and the implications for businesses as they navigate this new
landscape of consumer behavior and preferences. The emergence of new payment
methods like BNPL is a crucial area of study for both theoretical and practical
reasons. The theoretical importance of this topic lies in understanding how
consumers make purchasing decisions, which is an essential part of consumer
behavior research. By examining the factors that influence consumers' payment
method choices, researchers can gain insights into the drivers of consumer
behavior, such as financial literacy, access to credit, and risk perception. On the
practical side, understanding the adoption and usage of BNPL is crucial for
businesses and policymakers. BNPL's popularity among younger and less
financially savvy consumers raises essential questions about consumer protection,
credit risk, and financial stability. As BNPL continues to gain traction, businesses
need to understand the impact of these payment methods on consumer behavior and
adapt their strategies accordingly. Policymakers also need to monitor these
developments to ensure that appropriate regulations are in place to protect
consumers from potential harm. Overall, studying new payment methods like
BNPL is vital for both academic research and practical applications in the business
and policy worlds.

Research Questions
Concerns about some BNPL providers' excessive interest rates and fees are among
the arguments and controversies surrounding the usage of BNPL payment options.
Unfortunately, there is little information available about the precise effects of
BNPL on Gen-Z consumers. Retailers, politicians, and consumers themselves must
all comprehend how BNPL impacts Gen-Z consumer behavior and financial results,
as it is essential for shaping responsible business practices, informing public policy,

5
and fostering sound financial decision-making. Retailers may modify their
marketing campaigns and payment options to encourage responsible purchasing
habits by researching the impacts of BNPL on Gen-Z customers, and governments
can create rules and consumer laws to defend this group's financial security.

The purpose of this thesis is to examine how Gen-Z consumers' online purchasing
decisions are influenced by BNPL payment methods, as well as how BNPL affects
their financial security and money management. The aim is to enrich the current
body of literature on BNPL and offer valuable insights that may guide the
establishment of policies and practices, fostering responsible BNPL usage among
Gen-Z consumers. More specifically the following research questions will be
examined:

Q1. To what extent does the use of BNPL payment methods influence
the financial wellbeing of Gen-Z consumers in the USA?
This question aligns with the first hypothesis set (H10 and H1a) by seeking to
understand how the use of BNPL impacts the financial wellbeing of Gen-Z
consumers. The survey questions that would be most pertinent to this research
question include Question 4, Question 5, Question 6, Question 11, Question 13

Q2. Do the effects of BNPL payment methods on online shopping

behaviors vary based on the gender demographics of Gen-Z
consumers?
This question aligns with the second hypothesis set (H20 and H2a) and aims to
investigate the role of gender in shaping the effects of BNPL on Gen-Z consumer
behaviour in USA. The relevant survey questions in the survey for this research
question are Question 1, Question 2, Question 3, Question 9

Q3. How does the use of BNPL payment methods affect the online
shopping behaviour and financial wellbeing of Gen-Z consumers from
low-income levels and/or low educational backgrounds in the USA?
This question seeks to explore the third hypothesis set (H30 and H3a) and would
primarily focus on the experiences and behaviours of respondents who identify as
having low income or low educational levels. The relevant questions in the survey
for this research question are Question 1, Question 5, Question 10, Question 11,
Question 12 and Question 13.

Hypothesis
Recent developments in the payment sector have given rise to novel credit
alternatives that cater to evolving consumer needs and preferences (Republic,
2022). Among these, Buy Now, Pay Later (BNPL) services have garnered
significant popularity, offering practical, secure, and flexible payment solutions in
response to the growth of e-commerce and widespread adoption of online shopping

6
(Polyak, 2022). This trend prompts the investigation questioned in the first
hypothesis set (H10 and H1a) aiming to answer the Research Question 1.

The Gen-Z market, a rapidly expanding consumer segment, has exhibited a

proclivity towards BNPL services, presenting an attractive business opportunity
(Beth Costa, 2022). As the first generation born into the digital age, Gen-Z
possesses unique characteristics, behaviors, and attitudes that are transforming the
retail sector and posing new challenges and opportunities for companies. This
transformation and its gender aspects is the focus of the second hypothesis set (H20
and H2a) aiming to address the Research Question 2.

Considering the distinct spending patterns and expectations of Gen-Z compared to

previous generations, particularly those from low-income levels and/or with low
educational backgrounds, it can be hypothesized that BNPL services may cater to
their demands by providing an accessible, affordable means of procuring goods and
services. Furthermore, BNPL services may enhance accessibility and convenience,
reduce financial stress, and encourage experimentation and customer loyalty
through fostering innovation and unearthing new interests. This assertion is
examined in the third hypothesis set (H30 and H3a) aiming to address the Research
Question 3.

This study aims to investigate the impact of BNPL on Gen-Z's online shopping
behaviors and financial wellbeing, with a focus on understanding how BNPL
payment methods influence their consumer behavior, how the use of these methods
affects their financial wellbeing and management. The study aims to examine and
test some common believes around the use of BNPL payment methods using the
null hypothesis framework:

Null Hypothesis (H0): This states that there is no effect from BNPL.

Alternative Hypothesis (Ha): It states that there is an effect from using BNPL.

The following hypotheses will be examined:

H10: The use of BNPL has no effect on the financial wellbeing of

Gen-Z consumers in USA.
H1a: The use of BNPL has direct negative effect on the financial
wellbeing of Gen-Z consumers in USA.

H20: The use of BNPL has no effect on consumer habits based on

gender demographics of Gen-Z.
H2a: The use of BNPL has negative impact on consumer habits based
on gender demographics of Gen-Z.

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H30: The use of BNPL has no impact on people from low-income
levels and/or from low educational background.
H3a: The use of BNPL has negative impact on people from low
income levels and/or from low educational background.

8
Previous research
Introduction
The literature review section is centered on the comprehensive exploration of the
current academic literature about the online consumer habits of Gen-Z, which
relates to Hypothesis Sets 1 (H10 and H1a) and 2 (H20 and H2a) and Research
Questions 1 and Research Question 2. The review also investigates the relationship
between financial security and wellbeing and the role of debt in people’s life,
specifically examining areas relevant to Research Question 3 and Hypothesis Set 3
(H30 and H3a). The review investigates the interplay between Gen-Z's online
purchasing behavior and the social and psychological factors influencing their
decision-making. Additionally, we will delve into the unique characteristics of this
generation and how these factors impact their online purchasing behavior.

In addition to investigating the impact of social and psychological factors, our

literature review will also explore the research related to payment methods used for
online purchases and their effects on consumer habits and financial wellbeing. This
review will also analyze whether previous studies have been conducted on this topic
and evaluate the contribution that our research efforts can make to the existing
literature in the scientific community. Through this review, we aim to
comprehensively understand the current state of knowledge on this topic and
identify areas where further research can be performed.

Gen-Z online shopping habits

Ayuni (Ayuni, 2019) contacted a study with 241 Gen-Z individuals examining their
shopping habits and e-loyalty finding that e-service quality (high-quality fast
websites, apps that foster social connections) is a significant factor of their overall
satisfaction. This finding is useful for the exploration of Research Questions 1 and
Hypothesis Set 1 (H10 and H1a), which focus on financial wellbeing and the role of
BNPL services in Gen-Z's consumer behaviors. Wijerathne and Kasun
(Wijerathne, 2023) emphase on the importance of content quality, user experience,
and social features, aligned closely with Ayuni’s findings. Soni and Vohra (Pavleen
Soni, 2021) found that it is not just about high quality apps or content; it's also about
how fair the Gen-Z shoppers think the prices are, and how special the shopping
experience feels to them. The study by Pillay (Pillay, 2021) adds another layer by
revealing the importance of electronic word-of-mouth (eWOM) in influencing
brand love among Generation Z consumers.

The study of Priporas (Priporas, 2017) examines the expectations and perceptions
of Generation Z consumers in the context of smart retail. Using qualitative
interviews conducted with 38 college students, the study found that this
demographic group values the integration of innovative technology into their

9
shopping experience. These technologies are seen not just as tools but as essential
elements that provide speed, convenience and rich information to make informed
purchasing decisions. Interestingly,in addition to the excitement of technological
advances, the study also revealed a warning, there was clear concern among those
surveyed about the broader social impact of technology.

Youssef Chetioui and Laila El Bouzidi (Chetioui, 2023) investigated the

relationship between online impulsive buying and cognitive dissonance, their
results suggest that hedonic motivations, FOMO and materialism as key
determinants of online impulsive buying among Gen-Z.

The Rise and Implications of "Buy Now, Pay Later" Among Young
Consumers
As we seek to understand the current state of knowledge and identify areas for
further research, one recent study by Kenney, Firth, and Gathergood highlight the
rapid growth of BNPL and the lack of research into how consumers use this product
(Benedict Guttman-Kenney, 2023). The article highlights the lack of previous
research related to the aspects of BNPL, attributing the fact to the lack of data as
most BNPL is not visible in credit files, something that will soon change (Paul,
2022). Kenney, Firth and Gathergood article investigate whether consumers charge
BNPL transactions to their credit card and the degree of heterogeneity in such
behavior across consumers. The study found that a large minority of UK consumers
charge BNPL to credit cards, especially younger consumers and those living in
more deprived areas. This behavior raises doubts on these consumers' ability to pay
for BNPL and prompts a regulatory question as to whether consumers should be
allowed to refinance their unsecured debt.

The article's findings have significant implications for Gen-Z consumers' online
shopping habits, given their tendency to use BNPL payment methods (Walk-
Morris, 2022). The article by Kenney, Firth, and Gathergood is aligned with the
research of Gerrans, Baur and Lavagna-Slater from the University of Western
Australia, who conducted a survey using undergraduate students as their sample
population and found that financial literacy is associated with lower perceived
benefits and higher perceived risks of BNPL arrangements, which is potentially
problematic given that the primary users of BNPL arrangements are younger adults
with lower financial literacy (Paul Gerrans, 2022). Personal savings orientation and
propensity to plan were significant in explaining preference for BNPL, while
perceived risks for BNPL were higher for those with a higher propensity to plan
and a higher personal savings orientation.

In their article “Personality and Credit Card Misuse Among College Students: The
Mediating Role of Impulsiveness,” Pinto, Parente, and Palmero investigate the role
of personality in credit card misuse among college students (Stephen F. Pirog,
2014). They focus on the impulsive element of credit card misuse and found that

10
four elemental personality traits, including emotional instability, introversion,
materialism, and need for arousal, were positively associated with levels of credit
card misuse. Their findings are similar to the ones from Gerrans, Baur
and Lavagna-Slater that we discussed earlier. Troy Adams discusses the high-risk
credit behavior among 18- to 25-year-old college students, including the factors that
may influence their credit behavior such as attitudes toward money, beliefs about
the significance of money, and psychological characteristics like low self-control
(Adams, 2007). Adams focuses on health variables such as amphetamine use,
depression, physical activity, higher BMI and found that several behavioral and
health variables were significantly predictive of high-risk credit behavior.

Brougham and Jacobs-Lawson examined the factors related to compulsive buying

among college students, their sample population is US college students, which is
very close to the population our study is targeting. They researches discovered that
compulsive purchasing is influenced by financial awareness, future economic
perspective, and financial anxiety. For college students responsible for paying off
their debt, money management abilities are linked to reduced levels of compulsive
buying. These results imply that lowering the danger of credit debt in future cohorts
of young adults may need more than simply raising financial awareness (Ruby R.
Brougham, 2015).

Siemens investigated the psychological impact of "buy now, pay later" transactions
on consumers, specifically looking at how a delay between receiving a benefit (such
as buying a product) and paying for it affects consumers' perceptions of the
transaction (Siemens, 2007). The study found that the longer the delay between the
benefit and the cost, the less satisfied consumers were with the transaction when it
came time to pay and highlights the importance of understanding the psychological
impact of delayed payments on consumer behavior. It is important to highlight that
the study was conducted 15 years ago, since then many have changed in the e-
commerce environment and how people behave online.

In her article “Gen Z, Millennials Turning to Buy Now, Pay Later to Finance
Purchases” Pastore Alexandra highlights how the rise of BNPL payment methods
has been driven by the preferences and behavior of younger consumers, particularly
Gen-Z and millennials, who are more likely to seek alternative payment methods
that offer flexibility and convenience (Pastore, 2021).

The Interplay of Financial Wellbeing and Life Satisfaction: Insights

from Various Studies
Netemeyer and Warmath (Richard G. Netemeyer, 2018) studied the traits,
behaviors and circumstances that create various levels of perceived financial
wellbeing highlighted that although there is a lack of accepted definition of
financial wellbeing in the literature, its significance is tremendous for the overall
wellbeing of the individuals. Moulang and Strydom (Moulang, 2018) contacted a

11
quantitative study with 102 individuals and concluded surprisingly that wellbeing
is associated with an individual’s propensity of taking risks. Conchita D’Ambrosio,
Markus Jäntti, and Anthony Lepinteur (D’Ambrosio, 2020) studied the influence
of income and wealth to life satisfaction and highlight that income and wealth
matter not just in absolute terms but also in comparison with others. The review by
Dolan, Peasgood, and White (Dolan, 2008) on the economics of happiness
highlights various factors associated with subjective wellbeing (SWB). They found
that variables such as poor health, separation, unemployment, and lack of social
contact have significant negative associations with SWB. This aligns with findings
by Paul Frijters, John P. Haisken-DeNew, and Michael A. Shields (Frijters, 2004)
who investigated the relationship between real income and life satisfaction in East
Germany after its reunification with West Germany and found that both
employment status and household income are significant predictors of life
satisfaction for both males and females, a unit increase in log income results in a
notable increase in life satisfaction for both genders.

In line with the previous studies is the research by Liliya Gatina (Gatina, 2016)
which delves deeper into the financial dimensions of wellbeing (focusing on the
immigrants in Australia). The study uncovers a positive association between
financial wellbeing and overall life satisfaction. Interestingly, while financial
stability plays an important role in influencing happiness, it isn't the only
determinant. Other non-economic factors, such as health, familial ties, and
community connections found to be significant. Building on this perspective, Alois
Stutzer's research further illuminates the intricate relationship between income and
individual happiness (Stutzer, 2004). Stutzer studies the concept of income
aspirations and provides empirical evidence that while an increase in income can
increase one's sense of wellbeing, the aspirations associated with it can have the
opposite effect. Specifically, higher income aspirations were found to reduce life
satisfaction. This highlights that although that financial stability and wellbeing
contribute to happiness, it's the balance between actual income and financial goals
that can influence the overall satisfaction in life. Such findings complement Gatina's
assertion that factors beyond the economic realm play crucial roles in influencing
happiness. Nasir and Bloch's (Madeeha Nasir, 2021) editorial commentary on Su et
al.'s study (Su, 2021) underscores the profound impact of socioeconomic factors on
depression. They highlight how living in financially challenged environments can
expose individuals to stressors that elevate the risk of mental health issues.

Johnson and Krueger (Johnson, 2006) highlight that financial resources can protect
life satisfaction from external shocks. These insights collectively suggest that while
financial wellbeing is undeniably linked to overall life satisfaction, it is the interplay
of economic and non-economic factors, as well as perceptions and aspirations, that
truly define an individual's sense of happiness and wellbeing.

12
Financial literacy
Making sound personal financial choices is commonly linked to a high level of
financial literacy. Disney and Gathergood (Disney, 2013) provide empirical
evidence on the impact of financial literacy on consumer behavior, concluding that
poor financial literacy not only leads to suboptimal credit choices but also affects
how individuals search for financial information. This observation is particularly
relevant for the Research Question 3 and Hypothesis Set 3 (H30 and H3a), which
focus on Gen-Z consumers from low-income levels and/or low educational
backgrounds. Building upon the insights of Disney and Gathergood, the study by
P. Gerrans and R. Heaney (Gerrans, 2016) provides a perspective on the role of
educational interventions in enhancing financial literacy. Their findings challenge
the notion that financial education primarily benefits those who are already
financially literate. Furthermore, the study uncovers gender-specific trends and
emphasizes the socializing role of parents in shaping financial literacy. These
nuanced insights suggest that carefully designed educational programs can
potentially improve the suboptimal financial behaviors and inadequate information-
seeking patterns highlighted by Disney and Gathergood, particularly among those
who are most in need. Xiao et al. (Xiao, 2014) look at how early financial know-
how affects college students' money habits later in their life, their research is unique
because it follows students over time. They found that what students think they
know about money has a bigger impact on their financial choices than what they
actually know. Grohmann’s study (Grohmann, 2018) demonstrates that financial
literacy not only affects individual financial decisions, such as savings and credit
card management, but also has societal implications for the rapidly growing middle
class.

13
Methodology
This chapter presents the methodology that was used to conduct the quantitative
study. The study's methodology adheres to the positivist research philosophy,
which strongly emphasizes using quantitative, objective facts to test hypotheses and
establish causal links. This chapter's objectives are to explain how the study was
planned to answer the research questions and to detail the techniques and processes
utilized to gather and evaluate the data.

The choice to perform a quantitative study was made due to its ability to provide a
measurable and systematic analysis. Quantitative research offers several benefits,
such as the capability to generalize findings and establish statistically significant
relationships between variables (Cornell, 2022). Τhe following are the main reasons
choosing the quantitative approach: First, measurable and structured data—
quantitative research enables the collection and analysis of numerical, structured
data, making it easier to identify patterns, trends, and connections by allowing a
more objective examination of the relationship between the relevant variables
(Cornell, 2022). Second, statistical significance—quantitative approaches permit
the use of various statistical techniques, which can help in determining the
importance of the results, providing the study's findings with greater validity by
enabling more reliable conclusions about the links between the variables (Williams,
2021). Finally, comparability—the standardized nature of quantitative data
facilitates easier comparisons between different sub-groups within the study, which
can be beneficial for exploring variations in consumer behavior and BNPL usage
across distinct demographic segments (Cornell, 2022) (Williams, 2021).

By revealing patterns, correlations, and causal relationships between the variables,

the findings from the quantitative data will aid in addressing the study questions
and eventually improve our comprehension of the factors influencing Gen-Z
consumers' adoption and usage of BNPL payment methods.

The study design, including the sample plan, data gathering techniques, and data
analysis procedures, are then described. An online survey was used to compile a
sample of 150 Gen-Z consumers throughout the US. The survey method was chosen
due to its cost-effectiveness, time efficiency, and ease of reaching a large and
diverse sample. Surveys have several drawbacks, such self-report biases and the
inability to collect comprehensive qualitative information (Andrade, 2020). Despite
these limitations, the survey approach was deemed appropriate for this study since
it enables the gathering of standardized data from a sizable sample, enabling a
thorough investigation of the connection between the variables. The theoretical
framework was based on prior research in the field, which suggested that various
factors, such as financial literacy, attitudes toward credit and debt, and spending
habits, may influence consumer behavior.

14
In order to gauge participants' usage of BNPL payment options, financial literacy,
attitudes toward credit and debt, and spending patterns, the poll included various
questions. The acquired data was examined using statistical techniques, such as
descriptive and inferential statistics, to find patterns and correlations between the
variables of interest. A power analysis was conducted to determine the required
sample size for investigating the impact of Buy Now Pay Later (BNPL) payment
methods on the online consumer habits of Gen-Z in the US. A moderate effect size
of 0.5 in the proportion of consumers who adopt BNPL payment methods compared
to those who do not was considered, indicating practical significance (Bhandari,
What is Effect Size and Why Does It Matter?, 2020). A significance level of 0.05
and power of 0.80, typical values used in surveys (Bhandari, Statistical Power and
Why It Matters | A Simple Introduction, 2021) were utilized in the analysis. Based
on the calculations, it was determined that a sample size of 138.29 participants
would be necessary to achieve the desired power of 0.80 with a moderate effect size
of 0.5 at a significance level of 0.05. As such, the selected sample size of 150
participants would be adequate for the study. Overall, this chapter thoroughly
reviews the research methodology and outlines the steps taken to gather and
evaluate the data.

Research Design
The survey questions used to gather information on the effects of BNPL payment
methods on Gen-Z consumer behavior in the US are included in this part, along
with an explanation of how they relate to the study's research topics. The survey
questions were created to gather information on various factors linked to the use of
BNPL payment methods, financial literacy, attitudes about credit and debt, and
spending patterns to answer the study questions. We will discuss how each variable
was measured using a specific set of survey questions and how those measurements
relate to the study topics. We will also go into the justification for each question's
inclusion and any potential flaws or biases that could have affected the outcomes.

The survey questions were tested on a small group of 6 individuals to make sure
they were concise, pertinent, and well-structured. During the “in-person” online
pilot test, participants were required to complete the survey and offer comments on
the questions, including any issues they had understanding or responding to them.
This input was very helpful in pinpointing areas that needed improvement and in
improving the survey questions' relevance and clarity. The survey questions were
changed and finished based on the input from the pilot test to make sure they can
accurately gather the essential data and give insights into the link between BNPL
and Gen-Z consumer behavior. Some participants felt that certain questions seem
to be repeated, only with slightly different phrasing. We believe this is essential to
ensure inter-item reliability. Inter-item reliability is the degree to which different
items in a survey instrument are related to each other and measure the same
construct (Cronbach, 1951). It is important to ensure that the survey questions are

15
reliable and consistent to obtain accurate results. The questions were influenced to
a certain degree by the work of Gori (Alessio Gori, 2022), Roberts (James Roberts,
2001) and Gutierrez (Gutierrez, 2021). The survey can be found in the Appendix.

The first question of our survey asks participants to provide demographic

information that includes gender, educational level, employment status and annual
income. By obtaining this demographic data, it is possible to examine whether there
are any notable differences in BNPL payment method usage and consumer behavior
across various demographic groups and determine whether these variations
influence how BNPL payment methods affect the financial security and financial
management of Gen-Z consumers.

Delving deeper into the specific demographic factors, the study first focuses on the
role of gender in shaping consumer behavior. Studies have shown that gender has
a significant impact on online consumer habits (Jialin, 2007) (Yuan An, 2022), for
example according to Seock and Bailey's research, male college students showed
greater convenience/time consciousness than did participating female college
students when it came to aspects related to the online purchasing inclination of
college students (Yoo-Kyoung Seock, 2008).

Moving on to the aspect of educational levels, the primary goal was to capture a
comprehensive and representative understanding of the different educational
backgrounds within the United States population. This range allows for the
inclusion of participants with varying levels of education, from high school to
postgraduate studies, which ensures the analysis accurately reflects the diversity of
experiences and perspectives among the survey respondents.

The categories chosen to encompass three distinct educational milestones in the

U.S.:

1. "High School": This level represents individuals who have completed their
secondary education. Including this group in the survey allows us to
consider the perspectives of those who have not pursued higher education
and may have entered the workforce directly after high school.

2. "Bachelor's degree": This level includes individuals who have completed a

four-year undergraduate program and earned a bachelor's degree.
Incorporating this group in the survey enables the examination of the
perspectives of those who have pursued higher education and obtained a
degree, as this level of education is often required for various professional
fields.

3. "Master's degree": This category comprises individuals who have

completed a postgraduate program and earned a master's degree. By
including this group, the survey encompasses the views of those who have

16
 pursued advanced education and may possess specialized knowledge or
expertise in their respective fields.

The decision to split the sample into these three specific educational levels is based
in the following reasons:

x Distinct stages of financial development: As students advance in their

education, they are likely to gain greater skills and expertise in handling
their own finances. This might lead to variances in spending patterns,
attitudes toward credit and debt, and financial literacy—all crucial
components in comprehending how BNPLs are used. Several studies have
investigated the relationship between education level and financial literacy
in the United States, the results show that people who have higher education
levels tend to have a higher level of financial literacy (Lusardi, 2015) (Han,
2023).
x Cultural and social influences: Each educational level provides a distinct
social setting where people may come into contact with various cultural and
social factors that shape their views toward money and their purchasing
habits. Major and Zsótér show that cultural and social influences have a
significant impact on our financial decisions (Major, 2021). Financial
socialization, which refers to the process of learning about financial matters
from family, friends, and other social networks, is a key factor that affects
young adults' financial knowledge, behavior, and wellbeing (Narang, 2021).
Investigating the relationship between BNPL usage and educational levels
allows for a more comprehensive understanding of how these contextual
factors may contribute to the adoption and use of BNPL payment methods.

The third demographic variable we examined is employment status. Several

research have looked at the connection between consumer behavior and
employment. For instance, Hossain evaluated the relationship between Bangladeshi
consumers' demographic features and their online purchasing behavior and
discovered that income and occupation are important indicators of online shopping
behavior (Hossain, 2022). Koc found that changes in employment status can affect
changes in consumption behavior (Koc, 2015). These studies indicate that when
analyzing a population's online shopping patterns, employment status is an
important demographic feature to consider because it has a big impact on people's
financial security and purchasing power. A person's ability to make purchases
online, tendency to use new payment methods, and general consumption habits are
all likely to be more favorable for those with consistent work and money. On the
other side, those who are unemployed or underemployed could have more frugal
purchasing patterns, show greater price sensitivity, and be pickier when making
online purchases because of their limited financial resources.

17
The last demographic variable that was considered is income level. Individuals with
higher income levels generally have greater disposable income, which may result
in increased online spending (Wen Gong, 2013). In contrast, those with lower
income levels may demonstrate more frugal spending habits, heightened price
sensitivity, and a narrower scope of online purchases due to budgetary limitations.
Survey participants were requested to provide their annual income in an open
format, necessitating the categorization of these responses for analytical purposes.
The U.S. Census Bureau's criteria of income distribution were used as a guide to
create these groups (Emily A. Shrider, 2021).

The following income groups for people were formed:

x Low-income: less than $25,000: Those who fall under this group could have
trouble meeting basic needs including shelter, food, and healthcare. They
could work in low-wage jobs or be dependent on government aid programs
to cover their expenses.
x Middle-income: $25,000 - $75,000: This category includes a diverse group
of people, including entry-level professionals, experienced craftsmen, and
employees in the service sector. Middle-class people normally have
sufficient financial security to support a reasonable level of life, but they
may still run into difficulties when it comes to bigger costs, like housing or
retirement savings.
x Upper-income: Above $75,000: Those who fall into this group often have
more financial stability and the means to live more comfortably. They are
more likely to have additional sources of income, such as investments, or to
work in high-paying professions. They could have a sizeable savings
account and the money to buy large assets like real estate or opulent goods.

The aforementioned income levels should be understood to be approximate, as

geographical variations in cost of living can have a substantial impact on how much
an individual's income can buy. These ranges, however, provide a comprehensive
foundation for understanding the income distribution among in the US.

The survey's second question investigates the frequency of online shopping and
categorizes participants into groups based on the frequency of their online
shopping, ranging from infrequently to frequently. This information is relevant to
the study objectives as it enables an exploration of how the adoption of BNPL
payment methods affects Gen-Z consumer behavior, and how this influence may
vary across different frequency groups. By analyzing whether there is a correlation
between the use of BNPL payment methods and increased spending or greater
willingness to take on debt among individuals who frequently shop online, it is
possible to identify the impact of these payment methods on consumer behavior
within this group. Furthermore, the impact of BNPL payment methods on consumer
behavior across different frequency groups can also be examined.

18
The third research inquiry aims to investigate the frequency of BNPL payment
option utilization by Gen-Z consumers during online purchases. Such an
investigation will yield valuable insights into the influence of these payment
methods on consumer behavior and how this influence may vary based on usage
frequency. Specifically, the study seeks to examine the impact of these payment
methods on financial wellbeing and management, such as whether individuals who
frequently use BNPL payment methods exhibit higher levels of indebtedness or
lower levels of financial literacy. The survey results will be utilized to elucidate any
correlations between these variables.

The survey's fourth question asks Gen-Z customers to describe their motivations
for using BNPL payment options. There are numerous ways in which this
information relates to the study's research topics. In order to study the effects of
these payment methods on consumer behavior and financial wellness, it is essential
first to understand why Gen-Z consumers utilize BNPL payment methods.
Specifically, this investigation aims to determine if individuals who use BNPL
payment methods to manage cash flow or to spread payments over time exhibit
different levels of financial wellbeing than those who use these methods for other
reasons.

The fifth question on the impact of BNPL usage on financial wellbeing directly
relates to the second research question on the impact of BNPL usage on the
financial wellbeing and financial management of Gen-Z consumers. This question
assesses the respondent's perception of their own financial wellbeing as it relates to
their use of BNPL payment methods.

The sixth and seventh questions on whether BNPL payment methods have made
respondents more likely to overspend when shopping online links to the first
research question on the influence of BNPL payment methods on Gen-Z online
consumer behavior. These questions assess the impact of BNPL usage on online
shopping behavior, particularly in terms of overspending. The eighth question on
the respondent's familiarity with the terms and conditions of BNPL payment
methods also relates to the first research question on the influence of BNPL
payment methods on Gen-Z online consumer behavior. Understanding the terms
and conditions of BNPL payment methods may affect how likely someone is to use
them, and therefore may impact their online shopping behavior.

Both questions 9 and 10 deal with the use of BNPL payment methods and their
effects on consumer spending patterns and financial management. In questions 9
and 10, customers are asked whether the availability of BNPL payment options
influences their decision to buy goods and whether they have ever utilized BNPL
options for purchases they could not afford to make with cash or other payment
options. Combining these inquiries enables a greater comprehension of how BNPL
payment mechanisms influence consumers' monetary choices and actions. The
availability of this payment option may have affected consumers who utilized

19
BNPL payment methods for products they could not afford, and their answers to
question 8 may reflect this.

The following survey questions seek to learn about users' experiences with BNPL
payment methods. When utilizing BNPL payment methods, Question 11 inquires
whether the participant has ever missed a payment. Question 12 then inquiries about
the cause for missed payments, building on the response to Question 11.
Unexpected costs, forgetfulness, unanticipated income or work status changes, or
uncertainty regarding payment conditions or due dates are all potential causes.
These inquiries offer insightful information on the possible financial dangers
connected to BNPL payment methods. They can illuminate how these methods
affect the financial stability of Gen-Z customers.

The final question in the survey requests that respondents disclose their current
level of debt, encompassing credit card, loan, and BNPL payments. This inquiry is
pertinent to the second topic of the study, which examines the impact of BNPL
payment methods on the financial security and money management of Gen-Z
customers. The study can more accurately assess the correlation between BNPL
usage and debt accumulation among Gen-Z customers by obtaining information
regarding respondents' current debt levels.

Participants
For this study, the population of interest consists of adults belonging to Gen-Z (born
between 1997 and 2012) who reside in the United States. The sample size for the
study is 150 participants, which was selected from a pool of approximately 13,000
potential participants who meet the inclusion criteria. The selection process was
carried out online through the website prolific.com (Prolific, 2023), Prolific is an
online research platform that is designed to facilitate the recruitment and
management of research participants for academic studies. It offers researchers a
convenient and cost-effective way to access a diverse pool of participants from
around the world, enabling them to conduct high-quality research quickly and
efficiently. Prolific pre-screens participants for suitability and quality, ensures
funds are available to pay participants before listing studies, and handles payments
on behalf of researchers. The recruitment criteria included age, location, online
shopping and BNPL usage. Participants were excluded if they did not meet these
criteria. The sample size was determined based on a power analysis to ensure a
representative sample for the research questions. The sampling method employed
will be non-probability sampling, specifically convenience sampling, where
participants will be recruited through the online platform. The choice of non-
probability sampling is due to the ease of recruitment and cost-effectiveness
(Fleetwood, 2023).

20
Potential Biases and Limitations
While analyzing the study's conclusions, it is important to take into account a
number of possible biases and restrictions.

Firstly, the sample was obtained through an online platform, which introduces the
potential for selection bias, as individuals who utilize online platforms may differ
from those who do not. However, it is posited that this bias may not be substantial,
given that Gen-Z individuals reportedly spend over 8 hours online daily, and
approximately 95% of them have access to a smartphone (Vuleta, 2022).

The use of convenience sampling, a non-probability sampling method, may create

bias since people who are available and ready to participate may not have the same
characteristics as the target population as a whole (Rachel Pruchno, 2008). As a
result, the sample could not be representative of all Gen-Z people living in the US,
which could restrict the generalizability of the result.

The data's self-reported nature, which might lead to social desirability bias (Grimm,
2010) or recall bias (Spencer EA, 2017), is another possible drawback. The validity
of the results might be impacted by participants' propensity to give socially
acceptable answers or their inability to remember past actions with precision. Since
the survey was anonymous, we believe that the participants didn’t have strong
intention to use socially acceptable answers, while the inability to remember past
actions with precision is something that we can’t avoid.

Ethical and legal considerations

Participants provided their informed consent, a critical ethical consideration in
research studies. Informed consent was obtained through a two-step process. First,
participants were presented with an online consent form that clearly communicated
the study's objectives, participant rights, and any potential risks or benefits
associated with participation. Second, participants were required to affirmatively
indicate their consent by clicking a checkbox on the online form before proceeding
with the study. This process ensured that participants freely and knowingly
consented to their involvement in the study. This process ensures that participants
freely and knowingly consent to their involvement in the study. To further enhance
participant understanding, the consent form was designed using plain language and
a contact email address was provided in case participants had any questions or
concerns.

To protect participants' identities, their personal data was anonymized and securely
stored. Personal information was shared with researchers in an anonymized form,
utilizing only Prolific IDs to maintain participant confidentiality. Prolific, a UK-
based company, adheres to the General Data Protection Regulation (GDPR), which
ensures compliance with data protection guidelines and regulations related to the
collection, processing, and storage of personal data.

21
Tools
The survey questionnaire utilized in this study was developed using Google Forms,
an online survey tool. Google Forms provided a flexible and adaptable platform for
generating an extensive and tailored survey questionnaire that could be
conveniently shared with participants via a shared link through the Prolific
platform. Upon completion of the survey, participants received a code that was
required to be entered into Prolific to verify survey completion and receive
compensation. Furthermore, the use of Google Forms facilitated the management
and analysis of survey data, as the platform enabled real-time monitoring of
research progress and response rates through its data tracking and analytics features.
Following survey completion, the data was exported to a spreadsheet to allow for
data cleaning and statistical analysis.

After completing the data preparation stage, a visual representation of the results
was generated to identify patterns and trends within the data. Python (Coursera,
2023) scripts were developed for this purpose, utilizing the Pandas (McIntire,
2023), Matplotlib (Matplotlib, 2023), and Seaborn (Seaborn, 2023) libraries. These
libraries provide a comprehensive toolkit for data manipulation, visualization, and
statistical analysis. The resulting plots, charts, and tables facilitated the
identification of key relationships and patterns within the data. The use of these
analytical tools provided valuable insights and allowed for a comprehensive
understanding of the data. Through the application of these tools, clear and
compelling visualizations were produced, effectively communicating the findings
of the study.

Statistical analysis
In this study, the statistical analysis will be conducted in several phases to ensure
the reliability and validity of the findings. Understanding how demographics and
financial literacy affect attitudes toward BNPL payment methods is the main area
of study. The key variables under consideration include demographic factors (e.g.,
gender, educational attainment, employment status, and income bracket), financial
literacy (measured by the participants' understanding of BNPL terms and
conditions), and existing debt levels. By examining the relationships between these
variables, the study aims to gain insights into how different levels of debt,
influenced by demographic factors and financial literacy, may affect consumers'
attitudes and usage of BNPL payment methods.

Initially, the demographic distribution of survey respondents is analysed to

establish a foundational understanding.. This will serve as a starting point for
additional research into the associations between these demographic factors and
viewpoints on BNPL payment methods. Subsequent to the demographic study,
crosstabulation and bivariate analysis was conducted to investigate the relationships
between related variables, perhaps revealing patterns and correlations between the

22
use of BNPL, financial literacy, and demography. The goal is to identify trends and
insights that will enable us to comprehend the aspects that affect Gen-Z consumers'
views and behavior around BNPL.

The following are our independent variables:

Table 1. Distribution of sample size by independent variable

Variable Numbers Percentage (%)

Gender:

x Female x 73 x 48.65%
x Male x 77 x 51.35%

Education level:

x High school x 69 x 46%

x Bachelor’s degree x 63 x 42%
x Master’s degree x 18 x 12%

Employment status:

x Employed Full-Time x 82 x 54.6%

x Employed Part-Time x 23 x 15.3%

x Student / Unemployed x 45 x 30%

Annual income:

x Low income: <$25,000 x 54 x 36%

x 69 x 46%
x Middle-income: $25,000 -$75000
x 27 x 18%
x Upper-income: > $75,000

A three-fold cross-validation procedure was used to make sure the survey sample
was reliable and representative. Using stratified sampling, this technique enables
the division of the dataset into three subsets or folds while preserving a consistent
distribution throughout each fold. By doing this, we can maintain the general
distribution while assessing the consistency and stability of our sample over various
data points. This cross-validation is being done in order to evaluate the
dependability of our sample and reduce any potential biases that could result from
the sample selection procedure (Rooij, 2020).

23
Results and analysis
In this chapter, we undertake a thorough examination of the collected survey data
to investigate in relationship to the research questions and hypothesis sets.

Demographics of online shopping and BNPL utilization

An initial analysis was conducted to investigate the prevalence of online shopping
among the study's participants, with the objective of determining their familiarity
with this form of commerce. Reference to Figure 3, which illustrates the frequency
of online shopping categorized by gender, reveals that there is no significant
difference between male and female respondents, as both groups demonstrate a
marked inclination toward participating in online shopping activities. This finding
aligns with and Research Question 2 probing whether BNPL payment methods
have a varying impact based on the gender demographics among Gen-Z consumers.
It also provides a foundation for examining Hypothesis Set 2 (H20 and H2a). The
survey results indicate a notable discrepancy in online shopping frequency among
different education levels, with high school-educated individuals exhibiting a
greater inclination toward frequent online shopping, whereas those with a master's
degree tend to engage in online shopping more sporadically, see Figure 4. This data
will be instrumental in answering Research Question 3, which explores how
education levels may influence the effects of BNPL on financial wellbeing and
online shopping behavior and lays groundwork for testing Hypothesis Set 3 (H30
and H3a)

Relevant to the study of Research Question 1, the survey outcomes suggest that
while there are subtle variations in online shopping frequency across different
employment statuses, the distinctions are relatively modest, see Figure 5. Part-time
employed individuals display a marginally higher propensity for very frequent
online shopping, full-time employed respondents show a slightly greater inclination
to shop online often, and unemployed individuals exhibit a fairly balanced
distribution across the range of shopping frequencies.

The survey outcomes (Figure 6) reveal relatively minor disparities in online

shopping frequency among different income levels. Low-income respondents
exhibit marginally greater tendencies for very frequent online shopping, while mid-
income individuals display a slightly stronger inclination to shop online often.
Upper-income respondents predominantly fall within the "often" and "sometimes"
categories, with a fairly balanced distribution for rarely shopping online. Overall,
the variations across income levels are subtle, rather than starkly contrasting. This
observation provides contextual insight for our Research Question 3 examining the
influence of BNPL on varying income levels and directly relates to hypothesis H30
which posits that the use of BNPL has no impact or a negative impact on people
from different income levels.

24
The participants in this study do not predominantly utilize Buy Now, Pay Later
(BNPL) payment methods (Figure 7), with 70% of the respondents indicating
infrequent usage. Although the proportion of participants employing BNPL is
relatively modest, it closely aligns with the broader population trends, as 80% of
Americans have reportedly not yet experimented with BNPL payment options
(Howarth, 2023).

Motivations behind BNPL usage

The analysis of the survey results (Figure 8), considering the relationship between
income levels and reasons for BNPL usage, unveils noteworthy trends across the
income groups. Intriguingly, it was observed that individuals within the upper-
income category predominantly cited the utilization of BNPL payment methods for
capitalizing on promotions or discounts, accounting for 31.37% of the responses,
while mid- and low-income groups use it to manage larger purchases. Notably, the
low-income group reported a higher percentage of BNPL usage due to limited
financial resources, this finding is useful for the addressing the Research Question
3.

The survey responses by gender (Figure 9) emphasize a significant commonality

between male and female respondents when it comes to BNPL usage where the
primary reason for both genders is to execute larger purchases. Specifically, among
female respondents, this reason accounts for 32.86% of the responses. Despite this
shared primary motivation, secondary motivations such as convenience and cash
flow management do vary between genders. This finding is useful in the discussion
about Research Question 2.

In relation to Research Question 3, the study reveals that respondents with a high
school diploma, a predominant 29.69% cited the facilitation of larger purchases by
distributing payments over time as their primary reason for using BNPL. This
finding contrasts with respondents holding a Bachelor's degree, where 29.5%
predominantly used BNPL to capitalize on promotions or discounts (Figure 10). In
the analysis of employment status, 34.09% of part-time workers use BNPL
primarily to manage larger purchases, whereas among full-time employees, this
reason was cited by 29.70% (Figure 11).

Financial wellbeing impact of BNPL

Investigating the impact of Buy Now, Pay Later (BNPL) payment methods on
financial wellbeing, segmented by gender (in revelance to the Research Question
1), two key statistics emerge. For female respondents, 82.19% reported no
discernable impact on their financial wellbeing due to BNPL usage. Conversely, a
notably higher percentage of male respondents, 22.08% (Figure 12), claimed an
improvement in their financial wellbeing because of BNPL usage. Specifically,
while most females perceive no impact, a higher proportion of males attribute an

25
improvement in their financial wellbeing to BNPL, indicating a gender-based
variance in perceived effects.

Respondents holding a Bachelor's degree reported experiencing no effect on their

financial wellbeing due to their use of BNPL payment methods. This percentage
declines slightly to 72.22% for those possessing a Master's degree (Figure 13)
Analyzing the responses through the employment status angle (Figure 14), we can
see the part-time employed group has the highest proportion of respondents
reporting worsened financial wellbeing (21.74%), almost three times more than the
other two groups. Analyzing the data through the lens of income level (Figure 15)
reveals that BNPL payment methods exert a minimal impact on individuals'
financial wellbeing across all income tiers. The upper-income cohort is least likely
to observe any alteration in their financial wellbeing as a consequence of employing
BNPL payment modalities, whereas middle-income respondents seem to
experience a heightened rate of improvement in financial wellbeing in comparison
to other income groups. This observation may imply that individuals with mid-
range salaries are more influenced by BNPL payment methods, potentially due to
the augmented utility of these payment options as instruments for managing cash
flow and capitalizing on exclusive deals or discounts.

Psychological and behavioral effects of BNPL

The survey questions, 6 and 7, need to be examined together as both questions are
concerned with studying the behavioral and psychological effects of BNPL
payment methods on customers. The findings offer meaningful data for examining
Hypothesis Set 2 (H20 and H2a), which aim to explore the influence of BNPL on
consumer habits based on gender demographics of Gen-Z. Two key numbers
emerge from the data. First, 37.66% of male respondents felt that using BNPL
increased their likelihood to overspend, compared to 27.40% of females (Figure
16), second, when asked if they had ever regretted a transaction made using BNPL,
16.88% of males responded affirmatively, slightly higher than the 15.07% among
females (Figure 17), These results suggest that while gender does seem to influence
perceptions of BNPL-induced overspending and purchase regret, the majority of
both male and female respondents do not perceive BNPL as a significant factor in
these behaviors.

Checking the data through the lenses of the educational level (Figure 18) shows that
people from the lower educational levels are more likely to overspend when the use
BNPL methods. The High school graduates are twice as likely to overspend
compared to the participants with a master's degree. Regarding purchase regret
(Figure 19), the findings indicate that across all groups, the level of regret remains
relatively low.

From the data, it is notable that part-time employees have the highest rate of "Yes"
responses to overspending, at 39.13%, compared to 24.44% in the

26
student/unemployed group (Figure 20). In terms of purchase regret, part-time
employees again reported the highest level of regret, at 34.78%, distinctly higher
than the 11.11% reported by the unemployed group (Figure 21). These findings, in
relation to the Hypothesis Set 3 (H30 and H3a) suggest that employment status, may
influence the likelihood of overspending and experiencing purchase regret when
using BNPL payment methods

The percentage of individuals who experienced regret after making a BNPL

purchase is highest among the mid-income group (20.29%), followed by the upper-
income (14.81%) and low-income (11.11%) groups (Figure 23). When considering
the propensity to overspend (Figure 22) online due to BNPL payment methods, the
data shows that the upper-income group is most susceptible to overspending, with
37.04% of respondents affirming this behavior. In contrast, the mid-income and
low-income groups reported lower rates of overspending at 34.78% and 27.78%,
respectively.

BNPL’s impact on decision-making

In the survey, participants were also questioned about whether the availability of
BNPL payment methods influenced their decision to purchase certain items.
Analyzing the data segregated by gender (Figure 24) revealed that the proportion
of males and females who asserted that the presence of BNPL payment methods
stimulated their purchasing behavior was almost identical (26.03% for females and
24.68% for males). Moreover, a slightly larger percentage of female respondents
(39.73%) indicated that the availability of BNPL payment options occasionally
impacted their purchase decisions compared to their male counterparts (35.06%).
These findings imply that no significant differences exist between genders
concerning their purchasing decisions based on the accessibility of BNPL payment
methods.

Upon examining the influence of education level on purchasing decisions related to

BNPL payment methods (Figure 25), it was observed that the proportion of
respondents who reported that BNPL does not impact their purchase decisions
tended to increase with higher education levels (36.67% for High School, 36.27%
for Bachelor's Degree, and 44.44% for Master's Degree). Intriguingly, respondents
possessing a Master's Degree exhibited the highest percentages for both "No, it
doesn't affect me" and "Yes, it does affect me" responses, indicating a more
polarized response pattern among this group.

In terms of employment status (Figure 26), a higher percentage of full-time

employed respondents (41.46%) stated that availability of BNPL doesn't affect their
purchase decisions, compared to part-time employed (21.74%) and unemployed
(37.78%) respondents.

Finally, regarding income levels (Figure 27), a higher percentage of upper-income

respondents (48.15%) stated that availability of BNPL doesn't affect their purchase

27
decisions, compared to mid-income (36.23%) and low-income (33.33%)
respondents. This pattern indicates that the higher the income the smaller effect has
the availability of BNPL to the individuals decision.

Using BNPL for beyond-means purchases

Examining the behavior of Gen-Z participants to ascertain whether BNPL payment
methods incentivize them to engage in purchases they would not typically consider,
it was observed that 72.60% of female respondents indicated they had not employed
BNPL payment methods for such transactions, while 27.40% acknowledged they
had (Figure 28). Conversely, male respondents demonstrated a distinct pattern, with
a smaller proportion (61.04%) stating they had not utilized BNPL for purchases
beyond their means, and a larger proportion (38.96%) admitting to employing
BNPL for these types of transactions. This analysis implies that, in comparison to
their female counterparts, male respondents exhibit a higher propensity to utilize
BNPL payment methods for purchases they could not otherwise afford.

When stratified by education level (Figure 29), 53.33% of high school respondents
indicated not using BNPL for such purchases, while this proportion increased to
68.63% for Bachelor's degree holders and 77.78% for those with a Master's degree.
This trend suggests that as education levels rise, the likelihood of utilizing BNPL
for unaffordable purchases declines.

Regarding job status (Figure 30), 64.44% of respondents who were unemployed,
65.22% of those who were working part-time, and 68.29% of those who were
working full-time reported not using BNPL for goods they couldn't afford. With
more secure job, this suggests a little rise in financial responsibility. Lastly, a
breakdown of the data by income level (Figure 31) shows that 81.48% of
respondents with upper income, 62.32% of respondents with mid-income, and
64.81% of respondents with low-income claimed they did not use BNPL for goods
they could not afford. This trend shows that people with higher income levels are
less likely to utilize BNPL to make expensive purchases, although people with mid-
and low-income levels have approximately comparable propensities to do so.

Financial literacy as a aeterminant of BNPL financial impact

In this section, a more in-depth analysis is conducted to identify potential patterns
in the responses, revealing any relationships between financial literacy and the
impact of using BNPL methods. A respondent is considered financially literate in
terms of BNPL if they frequently use these payment methods and are familiar with
their terms and conditions.

Upon examination of the data (Figure 32), it is evident that participants who
reported no impact on their financial wellbeing predominantly use BNPL methods
rarely and are either not familiar with the terms (25.44%) or somewhat familiar
(49.12%). For the group that indicated an improvement in their financial wellbeing,
28
39.1% were somewhat familiar with BNPL payment methods and used them
occasionally. In contrast, among those who experienced a decline in financial
wellbeing due to BNPL payment methods, 23.1% were either not at all familiar or
somewhat familiar with the methods and used them infrequently. An additional
23.1% of respondents in this group were somewhat familiar and employed the
methods regularly.

In conclusion, the findings suggest that respondents who possess familiarity with
the usage and terms and conditions of BNPL are less likely to perceive a
deterioration in their financial wellbeing attributable to BNPL.

How familiarity and frequency of BNPL use influence consumer

behavior
Analyzing the data to find insights into the relationship between familiarity with
BNPL payment methods, frequency of use, and the likelihood of overspending
when shopping online (Figure 33). Among respondents who reported not knowing
if BNPL payment methods made them more likely to overspend, 36.36% used the
method rarely and were either not at all familiar or somewhat familiar with it.

For respondents who indicated that BNPL payment methods did not make them
more likely to overspend, the majority (46.84%) were somewhat familiar with these
methods and used them rarely. On the other hand, respondents who reported that
BNPL payment methods made them more likely to overspend displayed varying
levels of familiarity and usage frequency. The data suggests that respondents who
are somewhat familiar with BNPL payment methods and use them rarely are less
likely to report overspending when shopping online. However, increased familiarity
with and usage of BNPL payment methods does not consistently correlate with a
higher likelihood of overspending.

In terms of purchase regret (Figure 34), excluding the "I don't know" responses, a
significant proportion (43.48%) of respondents who reported not regretting any
BNPL purchases were somewhat familiar with the payment methods and used them
rarely. In contrast, among respondents who did report making regrettable purchases
using BNPL payment methods, 37.5% were somewhat familiar with the methods
and used them rarely, while 16.67% were somewhat familiar and used them
sometimes. It is noteworthy that despite varying levels of familiarity and usage
frequency, respondents who were somewhat familiar with BNPL payment methods
and used them rarely were the most prominent group in both categories (not
regretting and regretting purchases). This suggests that factors other than familiarity
and usage frequency, such as individual spending habits and financial management
skills, may also contribute to the likelihood of regretting a BNPL purchase.

An examination was conducted to determine if respondents have ever utilized

BNPL payment methods for acquisitions they could not afford with alternative

29
payment options (Figure 35), taking into account their familiarity with BNPL and
the frequency of use. Among respondents who have not employed BNPL for such
purchases, 45% were somewhat familiar with the payment methods and used them
infrequently, followed by 30% who were not at all familiar and likewise used them
sparingly. This observation implies that a majority of respondents have not
depended on BNPL to make purchases exceeding their means.

On the other hand, among respondents who reported using BNPL for purchases
they couldn't afford using other payment methods, 36% were somewhat familiar
with BNPL and used them rarely, while 16% were somewhat familiar and used
them sometimes. Interestingly, the percentage of respondents who were very
familiar with BNPL and used them sometimes was higher (12%) among those who
have used BNPL for unaffordable purchases than among those who have not (0%).
This indicates that as familiarity and usage frequency of BNPL payment methods
increase, there might be a higher likelihood of using them for purchases that are not
affordable with other payment methods.

In summary, the relationship between financial literacy, familiarity with BNPL

payment methods, and their effects on financial wellbeing is complex and
multifaceted. It appears that increased familiarity with BNPL payment methods
generally leads to more responsible usage and a lower likelihood of overspending
or making regrettable purchases. It is crucial to recognize that individual factors,
such as personal spending habits and financial management skills, may play a
significant role in shaping the overall impact of BNPL payment methods on an
individual's financial wellbeing.

30
Discussions
In this chapter, the primary findings are discussed, focusing on answering the
research question, leading to the formulation of conclusions. The purpose of this
study was to examine how Gen-Z consumers' online purchasing decisions are
influenced by BNPL payment methods, as well as how BNPL affects their financial
wellbeing.

The study employed a quantitative methodology, adhering to the positivist research

philosophy, which emphasizes using quantitative, objective facts to test hypotheses
and establish causal links. An online survey was conducted with a sample of 150
Gen-Z consumers across the US. This approach provided measurable and
systematic analysis, which enabled the exploration of patterns, correlations, and
causal relationships between the variables.

The survey questions were designed to gather information on various factors related
to the use of BNPL payment methods, financial literacy, attitudes about credit and
debt, and spending patterns to address the study's research questions. Each variable
was measured using a specific set of survey questions, and their relevance to the
study topics was carefully considered. The inclusion of each question was justified,
and potential flaws or biases were assessed.

The participants were recruited through Prolific.com utilizing convenience

sampling. Although the online recruitment method corresponds with Gen-Z's
substantial internet usage, potential biases and limitations warrant consideration.
Selection bias, the lack of representativeness inherent in convenience sampling, and
the self-reported nature of the data (potentially resulting in social desirability and
recall bias) may impact the generalizability and validity of the study's outcomes.

Reflecting on the work process, it is essential to evaluate whether the research

questions were answered adequately. While the study provides insights into the
potential effects of BNPL on Gen-Z consumers, it is crucial to recognize the
limitations of the chosen method, such as self-report biases and the inability to
collect comprehensive qualitative information, as mentioned in the methodology
chapter. Despite these limitations, the survey approach was deemed appropriate for
this study since it enables the gathering of standardized data from a sizable sample,
allowing a thorough investigation of the connection between the variables.

Evaluation on Research Question 1

The financial wellbeing of male and female respondents appears to be differentially
impacted by BNPL usage. While a majority of female respondents reported no
discernible impact on their financial wellbeing, a higher percentage of male
respondents indicated an improvement. This gender-based variance suggests that

31
BNPL payment methods may not uniformly affect the financial wellbeing of Gen-
Z consumers. Moreover, when stratified by employment status, part-time
employees showed the highest proportion of worsened financial wellbeing,
suggesting that employment conditions could be a factor. These findings put into
question the null hypothesis (H10) that posits no effect of BNPL on the financial
wellbeing of Gen-Z consumers, leaning more towards the alternative hypothesis
(H1a) that suggests a direct negative or positive effect. Additionally, the study found
that financial literacy and familiarity with BNPL methods also play a role in the
financial impact. Most respondents who reported no impact or an improvement in
financial wellbeing were somewhat familiar with BNPL methods. This suggests
that the financial impact of BNPL may be modulated by the level of understanding
and familiarity one has with these payment methods. These insights makes it clear
that the simplistic binary of positive versus negative impact as laid out in
Hypothesis Set 1 (H10 and H1a) is not enough to understand fully the impact of
BNPL. Therefore, while BNPL payment methods do appear to have some level of
impact on the financial wellbeing of Gen-Z consumers, the nature and extent of this
impact are not identified by the survey.

Evaluation on Research Question 2

Research Question 2 aims to investigate if there are gender differences on the
impact of BNPL on Gen-Z shopping behaviors. Both male and female
respondents overwhelmingly cited the execution of larger purchases as their
primary reason for using BNPL, indicating a shared motivation across genders.
However, secondary motivations such as convenience and cash flow management
did show variations. Moreover, male respondents were more likely to report that
BNPL usage led to overspending and experiencing purchase regret than their
female counterparts. These findings suggest that while BNPL's core utility may be
gender-neutral, its secondary impacts are influenced by gender. This aligns with
the alternative hypothesis (H2a) that postulates a negative impact of BNPL on
consumer habits based on gender demographics, rather than the null hypothesis
(H20), which posits no effect. Furthermore, the study found that the availability of
BNPL did not significantly affect the purchasing decisions of male and female
respondents differently, while gender may play a role in how BNPL is used or its
subsequent effects, it does not seem to be a significant determinant in the
shopping decision in the first place. Therefore, while there is evidence to support
the alternative hypothesis (H2a) that BNPL has varied impacts based on gender,
these differences are nuanced and do not necessarily point to a uniformly negative
or positive impact.

Evaluation on Research Question 3

Research Question 3 aims to investigate the affect of BNPL on the online
shopping behavior and financial wellbeing of Gen-Z consumers from low-income

32
levels and/or low educational backgrounds. The findings reveal that low-income
respondents were more likely to use BNPL to manage larger purchases due to
limited financial resources, and high school graduates were more prone to use
BNPL to facilitate larger purchases by spreading payments over time.
Additionally, high school graduates were twice as likely to overspend when using
BNPL compared to those with a Master's degree. These observations provide
evidence that both income level and educational background can influence the
effects of BNPL, thus supporting the alternative hypothesis (H3a) which posits a
negative impact on these demographics, over the null hypothesis (H30) which
suggests no impact. Moreover, part-time employees, who might be assumed to
belong to lower income brackets, showed the highest likelihood of overspending
and experiencing purchase regret. Similarly, people with lower educational levels
were more likely to overspend when using BNPL. These findings indicate that
individuals from lower income or educational backgrounds may be more
susceptible to the potential downsides of BNPL, such as overspending or
regrettable purchases. Therefore, the data leans towards validating the alternative
hypothesis (H3a), suggesting that BNPL can have a negative impact on people
from low-income levels and/or low educational backgrounds.

Conclusion
In summary, the study provides a comprehensive analysis of the multifaceted
effects of Buy Now, Pay Later (BNPL) payment methods on Gen-Z consumers in
the USA, touching upon varying aspects such as financial wellbeing, consumer
habits, and decision-making processes. The findings reveal that the impact of
BNPL is not uniform and is influenced by a range of factors. While BNPL offers
the convenience of deferred payments and the ability to manage larger purchases,
it also comes with its own set of challenges such as the potential for overspending
and inducing purchase regret. Interestingly, the study found that these impacts are
often modulated by individual circumstances and characteristics, thereby
suggesting the need for consumer education and perhaps even regulatory
oversight. As BNPL continues to grow in popularity, understanding its nuanced
impact on different demographics becomes increasingly crucial for both policy
formulation and consumer protection.

Future Research
Building on the current study, future research could benefit from employing a
multi-method approach that combines both quantitative and qualitative analyses to
gain a deeper understanding of the experiences and perceptions of Gen-Z
consumers. In-depth interviews or focus groups could be instrumental in capturing
the nuances of consumer sentiment and behavior that may not be fully revealed
through survey data alone. Furthermore, examining the role of financial literacy
and education in mitigating potential risks associated with BNPL could be an

33
essential aspect to investigate. Investigating how targeted educational
interventions could mitigate the potential risks and maximize the benefits
associated with BNPL could provide actionable insights for policymakers,
educators, and financial institutions.

34
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Appendix
Survey Questions

1. Please provide the following demographic information:

x Gender:
x Ethnic group:
x Education level:
x Employment status:
x Annual income:

2. How frequently do you shop online?

x Rarely
x Sometimes
x Often
x Very often

3. How often do you use BNPL payment methods when shopping

online?
x Rarely
x Sometimes
x Often
x Very often

4. Why do you use BNPL payment methods?

x To manage cash flow
x Convenience
x To take advantage of promotions or discounts
x To avoid credit card interest or fees
x To make larger purchases more manageable by spreading out payments
over time
x Limited financial resources and the need to defer payment.
x To access credit without having to go through a formal credit check
process.

5. How has your use of BNPL payment methods impacted your

financial wellbeing?
x It has improved my financial wellbeing.
x It has had no impact on my financial wellbeing.
x It has worsened my financial wellbeing.

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6. Have you found that using BNPL payment methods has made
you more likely to overspend when shopping online?
x Yes.
x No.
x I don’t know.

7. Have you ever used BNPL payment methods to make a

purchase that you later regretted?
x Yes.
x No.
x I don’t know.

8. How familiar are you with the terms and conditions of BNPL
payment methods?
x Not at all familiar
x Somewhat familiar
x Very familiar

9. Do you think that the availability of BNPL payment methods

affects your decision to purchase certain items?
x Yes, it encourages me to make more purchases.
x No, it doesn't affect my purchase decisions.
x Sometimes, it depends on the item and my financial situation.

10. Have you ever used BNPL payment methods for purchases that
you couldn't afford to pay for with cash or other payment
methods?
x Yes
x No

11. Have you ever missed a payment when using BNPL payment
methods?
x Yes
x No

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12. If yes, what was the reason for missing a payment?
x Unexpected expenses
x Forgetfulness
x Unforeseen changes in income or employment status
x Confusion about payment terms or due dates

13. How much debt do you currently have, including credit cards,
loans, and BNPL payments?
x None
x Less than $1,000
x Between $1,000 and $5,000
x Between $5,000 and $10,000
x More than $10,000

44
Figures

Figure 3. Frequency of online shopping by Gender

Figure 4. Frequency of online shopping by Educational Level

45
Figure 5. Frequency of online shopping by Employment Status

Figure 6. Frequency of online shopping by Income Level

46
Figure 7. Frequency of using BNPL

47
Figure 8. Reasons of using BNPL by income level

Figure 9. Reasons of using BNPL by income level

Figure 10. Reasons of using BNPL by education level

48
Figure 11. Reasons of using BNPL by employment status

Figure 12. Impact of BNPL on financial wellbeing by gender

Figure 13. Impact of BNPL on financial wellbeing by educational level

49
Figure 14. Impact of BNPL on financial wellbeing by employment status

Figure 15. Impact of BNPL on financial wellbeing by income level

Figure 16. Likelihood of overspend by gender

50
Figure 17. Purchase regret by gender

Figure 18. Likelihood of overspend by education level

Figure 19. Purchase regret by education level

51
Figure 20. Likelihood of overspend by employment status

Figure 21. Purchase regret by employment status

Figure 22. Likelihood of overspend by income level

52
Figure 23. Purchase regret by income level

53
Figure 24. Effects on purchase decision by gender

Figure 25. Effects on purchase decision by education level

Figure 26. Effects on purchase decision by employment status

54
Figure 27. Effects on purchase decision by income level

Figure 28. Using BNPL for purchases that were not affordable through other means, by gender

Figure 29. Using BNPL for purchases that were not affordable through other means, by education level

55
Figure 30. Using BNPL for purchases that were not affordable through other means, by employment status

Figure 31. Using BNPL for purchases that were not affordable through other means, by income level

56
Figure 32. Financial wellbeing in relation to familiarity of BNPL

Figure 33. Likelihood of overspend in relation to familiarity of BNPL

57
Figure 34. Purchase regret in relation to familiarity of BNPL

Figure 35. Purchase regret in relation to BNPL familiarity

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