Buy Now, Pay Later Culture: Economic Analysis of the PayLater Phenomenon Among Gen Z
DOI:
https://doi.org/10.59890/ijfbm.v3i3.55Keywords:
PayLater, Gen Z, Digital Consumption, Economic Behaviour, Financial LiteracyAbstract
The "PayLater" phenomenon, or buy now pay later (BNPL), is increasingly popular among Indonesia's Gen Z. The service offers easy access to credit without a card, but raises concerns about consumptive behaviour and personal financial management. This article aims to analyse the economic impact of using PayLater, focusing on financial behaviour, long-term well-being, and potential systemic risks if these trends are not managed wisely. The method used is descriptive-qualitative through literature studies, secondary data, and digital trend analysis. The findings show that while PayLater supports the growth of the digital economy and domestic consumption, it also increases short-term credit dependence and triggers individual financial crises, particularly in the early productive age. This article emphasises the importance of digital financial literacy as a foundation for healthy consumptive decision-making. At the end of the article, policy recommendations and educational strategies for industry players and regulators are presented to anticipate the long-term impact of this "instant" culture.
References
Affandi, Y., Ridhwan, M. M., Trinugroho, I., & Hermawan, D. (2024). Digital Adoption, Business Performance, and Financial Literacy in Ultra-Micro, Micro, and Small Enterprises in Indonesia. Research in International Business and Finance. https://doi.org/10.1016/j.ribaf.2024.102376
Agustin, L. (2022). Evaluation of Factors influencing the Shopee PayLater adoption in Indonesia. Management Science and Business Decisions, 2(2), 5–18. https://doi.org/10.52812/msbd.49
Ah Fook, L., & McNeill, L. (2020). Click to Buy: The Impact of Retail Credit on Over-Consumption in the Online Environment. Sustainability, 12(18), 7322. https://doi.org/10.3390/su12187322
Amaniyah, E., & Sholeha, S. E. (2024a). PENGARUH LITERASI KEUANGAN DAN RISIKO TERHADAP PERILAKU KONSUMTIF MAHASISWA DENGAN PENGGUNAAN FINTECH PAYMENT (PAYLATER) PADA SHOPEE SEBAGAI VARIABEL INTERVENING. Competence : Journal of Management Studies, 18(1), 79–98. https://doi.org/10.21107/kompetensi.v18i1.25620
Amaniyah, E., & Sholeha, S. E. (2024b). PENGARUH LITERASI KEUANGAN DAN RISIKO TERHADAP PERILAKU KONSUMTIF MAHASISWA DENGAN PENGGUNAAN FINTECH PAYMENT (PAYLATER) PADA SHOPEE SEBAGAI VARIABEL INTERVENING. Competence : Journal of Management Studies, 18(1), 79–98. https://doi.org/10.21107/kompetensi.v18i1.25620
Ardely, N. P., & Ekananda, M. (2023). Loan-to-Value Ratio, KPR and KPA in Indonesia. Journal of Developing Economies, 8(1), 218–230. https://doi.org/10.20473/jde.v8i1.39737
Argyriou, E., Um, M., Wu, W., & Cyders, M. A. (2020). Measurement Invariance of the UPPS-P Impulsive Behavior Scale Across Age and Sex Across the Adult Life Span. Assessment, 27(3), 432–453. https://doi.org/10.1177/1073191119832660
Azizy, J., Syarifuddin, M. A., & Ubaidah, H. H. (2018). Thematic Presentations in Indonesian Qur’anic Commentaries. Proceedings of the 1st International Conference on Recent Innovations, 1962–1969. https://doi.org/10.5220/0009937919621969
Bahasoan, A. N., Anwar, C., Khaldun, R. I., & Tahawa, T. H. B. (2019). The influence of economic growth on manpower absorption in Central Sulawesi. IOP Conference Series: Earth and Environmental Science, 343(1), 012253. https://doi.org/10.1088/1755-1315/343/1/012253
Carrillo Barbosa, R. L., & Guzmán Rincón, A. (2022). Art workers in Colombia: Characteristics, symbolic consumption and social identity. European Research on Management and Business Economics, 28(2), 100180. https://doi.org/10.1016/j.iedeen.2021.100180
Center, K. I., & Kredivo. (2024). Laporan Perilaku Pengguna PayLater Indonesia 2024. Katadata Insight Center. https://kredivocorp.com/wp-content/uploads/2024/06/Laporan-Perilaku-Pengguna-Paylater-Indonesia-2024-Kredivo.pdf
Cheng, Z.-H., Chang, C.-T., & Lee, Y.-K. (2020). Linking hedonic and utilitarian shopping values to consumer skepticism and green consumption: the roles of environmental involvement and locus of control. Review of Managerial Science, 14(1), 61–85. https://doi.org/10.1007/s11846-018-0286-z
deHaan, E., Kim, J., Lourie, B., & Zhu, C. (2024). Buy Now Pay (Pain?) Later. Management Science, 70(8), 5586–5598. https://doi.org/10.1287/mnsc.2022.03266
Fauzi, A., Hardjosoekarto, S., Radhiatmoko, R., Herwantoko, O., Darwan, D., Manik, E. E., & Romli, Z. (2023). Digital-social construction of willingness to pay in online marketplace: Economic sociology of the digital functional food market in Indonesia. International Sociology, 38(4), 517–538. https://doi.org/10.1177/02685809231183328
Feng, L., Teng, J.-T., & Zhou, F. (2023). Pricing and lot-sizing decisions on buy-now-and-pay-later installments through a product life cycle. European Journal of Operational Research, 306(2), 754–763. https://doi.org/10.1016/j.ejor.2022.08.010
Fenton-O’Creevy, M., & Furnham, A. (2022). Money attitudes, financial capabilities, and impulsiveness as predictors of wealth accumulation. PLOS ONE, 17(11), e0278047. https://doi.org/10.1371/journal.pone.0278047
Filotto, U., Salerno, D., Sampagnaro, G., & Stella, G. P. (2024). Riding the wave of change: Buy now, pay later as a disruptive threat to payment cards in the global market. Research in International Business and Finance, 72, 102499. https://doi.org/10.1016/j.ribaf.2024.102499
Foster, B., Hurriyati, R., & Johansyah, M. D. (2022). The Effect of Product Knowledge, Perceived Benefits, and Perceptions of Risk on Indonesian Student Decisions to Use E-Wallets for Warunk Upnormal. Sustainability, 14(11), 6475. https://doi.org/10.3390/su14116475
Foster, B., Sukono, & Johansyah, M. D. (2021). Analysis of the Effect of Financial Literacy, Practicality, and Consumer Lifestyle on the Use of Chip-Based Electronic Money Using SEM. Sustainability, 14(1), 32. https://doi.org/10.3390/su14010032
Fu, C., Sun, X., Guo, M., & Yu, C. (2024). Can digital inclusive finance facilitate productive investment in rural households?–An empirical study based on the China Household Finance Survey. Finance Research Letters, 61, 105034. https://doi.org/10.1016/j.frl.2024.105034
Gallego-Losada, M.-J., Montero-Navarro, A., Gallego-Losada, R., & Rodríguez-Sánchez, J.-L. (2024). Measuring financial divide in the rural environment. The potential role of the digital transformation of finance. International Entrepreneurship and Management Journal, 20(4), 2791–2810. https://doi.org/10.1007/s11365-024-00992-4
Gerrans, P., Baur, D. G., & Lavagna-Slater, S. (2022). Fintech and responsibility: Buy-now-pay-later arrangements. Australian Journal of Management, 47(3), 474–502. https://doi.org/10.1177/03128962211032448
Hartono, B., Sunaningsih, S. N., & Sitoresmi, M. W. (2025a). Determinants of Attitude and Intention to Use Virtual Credit Cards in Indonesia. Qubahan Academic Journal, 5(1), 334–350. https://doi.org/10.48161/qaj.v5n1a1103
Hartono, B., Sunaningsih, S. N., & Sitoresmi, M. W. (2025b). Determinants of Attitude and Intention to Use Virtual Credit Cards in Indonesia. Qubahan Academic Journal, 5(1), 334–350. https://doi.org/10.48161/qaj.v5n1a1103
Hepola, J., Leppäniemi, M., & Karjaluoto, H. (2020). Is it all about consumer engagement? Explaining continuance intention for utilitarian and hedonic service consumption. Journal of Retailing and Consumer Services, 57, 102232. https://doi.org/10.1016/j.jretconser.2020.102232
Hermawan, D., Lie, D., Sasongko, A., & Yusan, R. I. (2024). Money velocity, digital currency and inflation dynamics in Indonesia. Bulletin of Indonesian Economic Studies, 60(3), 305–345. https://doi.org/10.1080/00074918.2024.2398347
Hu, Y., & Min, H. (Kelly). (2022). Enjoyment or indulgence: What draws the line in hedonic food consumption? International Journal of Hospitality Management, 104, 103228. https://doi.org/10.1016/j.ijhm.2022.103228
Huang, X., Xu, L., Liu, J., & Huang, Y. (2022). Enhancing Economic Sustainability with Credit Payment Services in a Dual-Channel Supply Chain. Sustainability, 14(14), 8295. https://doi.org/10.3390/su14148295
Humaizi, H., & Yusuf, M. (2023). Thematic Construction in the News Coverage of the COVID-19 Pandemic: The Pattern and Its Implication in Teaching English News-Item Text. World Journal of English Language, 14(1), 65. https://doi.org/10.5430/wjel.v14n1p65
Jayaputri, H. E., & Aziz, M. F. (2024). Language Markers and Social Identity in Digital Communication Among Generation Z in Indonesia. Applied Linguistics: Innovative Approaches and Emerging Trends, 1(2), 131–154. https://doi.org/10.58989/appling.v1i2.21
Ji, Y., Wang, X., Huang, Y., Chen, S., & Wang, F. (2023). Buy now, pay later as liquidity insurance: Evidence from an early experiment in China. China Economic Review, 80, 101998. https://doi.org/10.1016/j.chieco.2023.101998
Kamil, I., Ariani, M., & Irawan, I. A. (2024). The influence of lifestyle and financial literacy on online paylater system and its impact on spending behavior. Journal of Economics and Business Letters, 4(2), 51–62. https://doi.org/10.55942/jebl.v4i2.285
Keinan, A., Bellezza, S., & Paharia, N. (2019). The symbolic value of time. Current Opinion in Psychology, 26, 58–61. https://doi.org/10.1016/j.copsyc.2018.05.001
Kilay, A. L., Simamora, B. H., & Putra, D. P. (2022). The Influence of E-Payment and E-Commerce Services on Supply Chain Performance: Implications of Open Innovation and Solutions for the Digitalization of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 119. https://doi.org/10.3390/joitmc8030119
Kumar, A., Salo, J., & Bezawada, R. (2024). The effects of buy now, pay later (BNPL) on customers’ online purchase behavior. Journal of Retailing, 100(4), 602–617. https://doi.org/10.1016/j.jretai.2024.09.004
Lim, S. S., & Bone, M. (2022). Optimism, debt accumulation, and business growth. Journal of Behavioral and Experimental Economics, 97, 101828. https://doi.org/10.1016/j.socec.2022.101828
Liu, F., Lim, E. T. K., Li, H., Tan, C.-W., & Cyr, D. (2020). Disentangling utilitarian and hedonic consumption behavior in online shopping: An expectation disconfirmation perspective. Information & Management, 57(3), 103199. https://doi.org/10.1016/j.im.2019.103199
Lučić, A., Uzelac, M., & Previšić, A. (2021). The power of materialism among young adults: exploring the effects of values on impulsiveness and responsible financial behavior. Young Consumers, 22(2), 254–271. https://doi.org/10.1108/YC-09-2020-1213
Lyu, J., Li, L., Liu, Y., & Deng, Q. (2025). Promoting common prosperity: How do digital capability and financial literacy matter? International Review of Financial Analysis, 97, 103779. https://doi.org/10.1016/j.irfa.2024.103779
Madeira, C. (2019). The impact of interest rate ceilings on households’ credit access: Evidence from a 2013 Chilean legislation. Journal of Banking & Finance, 106, 166–179. https://doi.org/10.1016/j.jbankfin.2019.06.011
Maesen, S., & Ang, D. (2025). Buy Now, Pay Later: Impact of Installment Payments on Customer Purchases. Journal of Marketing, 89(3), 13–35. https://doi.org/10.1177/00222429241282414
Mikhed, V., Raina, S., Scholnick, B., & Zhang, M. (2024). Debtor income manipulation in consumer credit contracts. Journal of Financial Economics, 157, 103851. https://doi.org/10.1016/j.jfineco.2024.103851
Nasution, L. N., Rangkuty, D. M., & Putra, S. M. (2024). The Digital Payment System: How Does It Impact Indonesia’s Poverty? ABAC Journal, 44(3), 228–242. https://doi.org/10.59865/abacj.2024.37
Nugraha, D. P., Setiawan, B., Nathan, R. J., & Fekete-Farkas, M. (2022). Fintech Adoption Drivers for Innovation for SMEs in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), 208. https://doi.org/10.3390/joitmc8040208
Purwandari, B., Suriazdin, S. A., Hidayanto, A. N., Setiawan, S., Phusavat, K., & Maulida, M. (2022). Factors Affecting Switching Intention from Cash on Delivery to E-Payment Services in C2C E-Commerce Transactions: COVID-19, Transaction, and Technology Perspectives. Emerging Science Journal, 6, 136–150. https://doi.org/10.28991/esj-2022-SPER-010
Rahmania, T., Wulandari, S. S., & Marfu, A. (2024). Sustainable financial institution in Indonesia: An empirical analysis of social-cultural context, nepotism, and moral hazard on the shaping of non-performing loans. Sustainable Futures, 8, 100279. https://doi.org/10.1016/j.sftr.2024.100279
Raj, V. A., Jasrotia, S. S., & Rai, S. S. (2024). Intensifying materialism through buy-now pay-later (BNPL): examining the dark sides. International Journal of Bank Marketing, 42(1), 94–112. https://doi.org/10.1108/IJBM-08-2022-0343
Relja, R., Ward, P., & Zhao, A. L. (2024). Understanding the psychological determinants of buy-now-pay-later (BNPL) in the UK: a user perspective. International Journal of Bank Marketing, 42(1), 7–37. https://doi.org/10.1108/IJBM-07-2022-0324
Sapulette, M. S. N. E. T. S. V. D. M. S. (2020). Digital financial literacy, current behavior of saving and spending and its future foresight. Economics of Innovation and New Technology. https://doi.org/10.1080/10438599.2020.1799142
Sari, V. K. (2022). Debt and Economic Growth: The Case of Indonesia. Journal of Developing Economies, 7(2), 198–207. https://doi.org/10.20473/jde.v7i2.25722
Sconti, A. (2022). Digital vs. in-person financial education: What works best for Generation Z? Journal of Economic Behavior & Organization. https://doi.org/10.1016/j.jebo.2021.12.001
Setiadi, R., & Frederika, R. (2022). Family financial planning for disaster preparedness: A case study of North Semarang, Indonesia. International Journal of Disaster Risk Reduction, 82, 103332. https://doi.org/10.1016/j.ijdrr.2022.103332
Suryono, R. R., Budi, I., & Purwandari, B. (2021). Detection of fintech P2P lending issues in Indonesia. Heliyon, 7(4), e06782. https://doi.org/10.1016/j.heliyon.2021.e06782
Tian, G. (2022). Influence of Digital Finance on Household Leverage Ratio from the Perspective of Consumption Effect and Income Effect. Sustainability, 14(23), 16271. https://doi.org/10.3390/su142316271
Tritto, A., He, Y., & Junaedi, V. A. (2020). Governing the gold rush into emerging markets: a case study of Indonesia’s regulatory responses to the expansion of Chinese-backed online P2P lending. Financial Innovation, 6(1), 51. https://doi.org/10.1186/s40854-020-00202-4
Wang, H., Mao, K., Wu, W., & Luo, H. (2023). Fintech inputs, non-performing loans risk reduction and bank performance improvement. International Review of Financial Analysis, 90, 102849. https://doi.org/10.1016/j.irfa.2023.102849
Wasiaturrahma, W., & Kurniasari, A. L. (2021). ELECTRONIC PAYMENT AND ECONOMIC GROWTH IN INDONESIA. Journal of Developing Economies, 6(2), 287. https://doi.org/10.20473/jde.v6i2.24923
You, Y. (Cindy), Wang, L., Yang, X., & Wen, N. (2024). Alleviating hedonic adaptation in repeat consumption with creative thinking. Journal of Consumer Psychology. https://doi.org/10.1002/jcpy.1439
Yudaruddin, R., Nugroho, B. A., Mardiany, Fitrian, Z., Hapsari, P., Fitrianto, Y., & Santi, E. N. (2024). Liquidity and Credit Risk in Indonesia: The Role of FinTech Development. Sage Open, 14(2). https://doi.org/10.1177/21582440241245248
Zaimovic, A., Omanovic, A., Nuhic Meskovic, M., Arnaut-Berilo, A., Zaimovic, T., Dedovic, L., & Torlakovic, A. (2025). The nexus between digital financial knowledge and financial inclusion: digital financial attitudes and behaviour as mediators enhancing financial inclusion. International Journal of Bank Marketing, 43(2), 388–423. https://doi.org/10.1108/IJBM-01-2024-0053
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Awal Nopriyanto Bahasoan, Nur Qamariah, Wahdaniah, Indayani B
This work is licensed under a Creative Commons Attribution 4.0 International License.
