Factors Influencing the Use of Buy Now Pay Later (BNPL) Payments
Factors Influencing the Use of Buy Now Pay Later (BNPL) Payments

Summary/Abstract: This article focuses on the fastest-growing consumer credit segment usually associated with e-commerce, butincreasingly offered for brick-and-mortar shopping too. The purpose of the study was to identify how, and theextent to which, specific aspects of consumer behaviour – particularly in terms of attitudes towards money man-agement, and socio-demographics – influence the use of BNPL. The reasons are socio-demographic, economic,psychological and technological. The article incorporates a broad literature review of the motives behind con-sumers' use of BNPL as well as an original empirical survey among a representative sample of Poles, conductedusing the CAWI technique. The impact and strength of individual factors for choosing BNPL were identified viaa logistic regression model. The statistical significance of the selected variables was then evaluated, followed bythe elimination of non-significant variables from the model. It helped select statistically significant factors for us-ing BNPL. Among 7 statistically significant variables, 3 relate to socio-demographic features of the respondents– level of education, income and gender. Personal innovativeness, inclination towards going into debt, as well asa family history of taking various loans slightly increase the probability of opting for BNPL. It had been presumedthat propensity to save would have a negative effect, and that optimism would have a positive influence, onchoosing BNPL; however, this presumption was not demonstrated. Nor do consumerism and impulsiveness inmaking purchases affect the likelihood of using BNPL. Of all the statistically significant factors underlying deci-sions to choose BNPL, the consumer’s use of LendTech has the greatest impact, increasing the chance of usingBNPL. This suggests that similar consumers constitute these two segments. LendTech (lending technology) isdefined as part of the FinTech (financial technology) sector, which concerns the granting of digital loans by non-bank lending institutions in remote channels (Waliszewski et al, 2024).

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