The Impact of Buy-Now-Pay-Later Schemes on Young Consumers’ Spending Patterns: An Economic Perspective

Abstract

Buy-Now-Pay-Later (BNPL) schemes have rapidly emerged as one of the most influential financial innovations in the digital marketplace, especially among young consumers who actively engage in online shopping. This study examines how BNPL services shape the spending behaviour of young users by analysing their purchasing decisions, budgeting habits, and overall financial responsibility. The findings indicate that the convenience and interest-free structure of BNPL encourage more frequent purchases and reduce the psychological impact of spending, often leading to impulsive buying and lower savings. Evidence from recent research also suggests that limited financial literacy and strong social influences make young consumers more vulnerable to hidden fees, repayment delays, and debt accumulation. At the same time, BNPL has contributed to greater accessibility of products and increased retail activity, demonstrating its dual role as both an enabler of financial flexibility and a potential driver of over-consumption. By evaluating the economic implications, risks, and behavioural trends associated with BNPL, this study highlights the importance of financial education, responsible usage, and stronger regulatory oversight to ensure that young consumers can benefit from BNPL without compromising long-term financial stability.