Impact of Buy Now Pay Later (BNPL) Services on Students

A Post-Graduation Dissertation Report

Submitted to the Central University of Himachal Pradesh For the award of the
degree of

Master of Business Administration

Under the Mentorship of

Professor Krishan Kumar Verma

By

Arvind Rialch

CUHP22MBA28

MBA-Batch (2022-24)

HPKV Business School,

School of Commerce & Management Studies
Central University of Himachal Pradesh, Dharamshala, Kangra HP
Central University of Himachal Pradesh
School of Commerce and Management Studies Dhauladhar-II,
Dharamshala, Kangra, HP,176215
http://cuhimachal.ac.in, Email: dean_scms@hpcu.ac.in
Fax:01892- 229331

[1]
 Certificatecum Declaration
I declare that the Business Proposal entitled “IMPACT OF BUY NOW PAY LATER (BNPL)
SERVICES ON STUDENTS” is a record of original work undertaken by me for the award of
the degree of Master of Business Administration under the mentorship of Name and
Academic Designation of Supervisor, HPKV Business School, School of Commerce and
Management Studies, Central University of Himachal Pradesh. I hereby confirm the
originality of the work and ensure that this has not formed the basis for the award of any
degree, diploma, associate ship, fellowship, or other titles.

Professor Krishan Kumar Verma

Arvind Rialch

Date:
CUHP22MBA28

[2]
 Acknowledgement

I would like to express my gratitude and appreciation to Professor. Krishan Kumar Verma,
my esteemed mentor, for his guidance, support, and expertise throughout the entire process
of conducting on the topic of “Impact of Buy Now Pay Later (BNPL) services on students”
Professor K.K Verma extensive knowledge and experience in the field of finance and his
deep understanding of the intricacies of financial inclusion and emerging technologies have
beeinstrumental in shaping the direction and scope of my research. His advice and support
have been crucial in assisting me as I work my way through the difficulties and intricacies of
my education. I want to express my gratitude to Professor Verma for his consistent
encouragemenand assistance, which have been essential in helping me stay focused and
motivated during the several phases of writing my dissertation. I am also appreciative of all
the conversations and intellectual talks I have had with Professor. Verma. My studies and
grasp of the subject have been substantially enhanced by his ability to question my
viewpoints and inspire me to think critically. I also want to express my gratitude to the
university's teachers and staff for giving me access to the tools and facilities I needed to
successfully complete my study. I want to thank everyone who took the time to participate in
my study. This study would not have been feasible without their participation and openness
to offer their viewpoints.

[3]
 Abstract
This post-graduation dissertation report delves into the impact of Buy Now Pay Later
(BNPL) services on students, a demographic increasingly adopting this financial tool. The
study employs a mixed-method approach, combining quantitative and qualitative research
techniques to gather and analyze data. The research objectives include evaluating the
frequency and extent of BNPL usage among students, identifying the primary items
purchased using BNPL, exploring students' perceptions regarding the financial tool aspect of
BNPL services, and investigating the potential influence of BNPL services on students'
academic performance. The findings reveal that students have a moderate level of familiarity
with BNPL services and understand their underlying principles and workings. However, there
is a lack of awareness regarding the fees and interest rates associated with BNPL transactions.
This lack of understanding could potentially expose students to financial risks and
unanticipated costs. The study also highlights that students are more likely to use BNPL
services for larger purchases, such as furniture or technology, and that the availability of
BNPL options can influence their purchasing decisions. This trend suggests that BNPL
services may be shaping students' consumption patterns and preferences, with potential
implications for their financial well-being and long-term financial planning. The study
identifies potential risks associated with BNPL usage, including the temptation to overspend,
the impact on credit scores, and the potential for debt accumulation. These risks are
particularly concerning for students, who may not have yet established strong financial habits
and may be more vulnerable to financial distress. The findings underscore the importance of
financial literacy and responsible usage of BNPL services among students to mitigate these
risks and ensure a secure financial future. By promoting financial education and fostering
responsible financial behavior, institutions and financial service providers can help students
make informed decisions about BNPL services and better manage their financial resources.
this study provides valuable insights into the impact of BNPL services on students,
highlighting both the benefits and potential risks associated with their usage. The findings
emphasize the need for financial education and responsible decision-making among students
to ensure that they can harness the advantages of BNPL services while minimizing the risks.
This research contributes to the growing body of knowledge on the evolving landscape of
consumer finance and the role of BNPL services in shaping financial behavior.

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 Table of Content

Chapter no. Chapters Page number

1 Introduction 6-13

2 Literature review and research gap and objectives 14- 23

3 Research methodology 24- 28

4 Data analysis and interpretation 29-38

5 Findings, Conclusion, Recommendations 39-43

6 Referencing 44-45

INTRODUCTION

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The introduction of a financial technology credit solution known as Buy Now, Pay Later
(BNPL) has revolutionized the consumer experience by offering individuals the flexibility to
defer payment for their purchases through one or multiple interest-free instalments at a later
date. This innovative service, typically facilitated by independent entities separate from the
retail outlets, has predominantly been associated with online transactions but has steadily
expanded its presence into brick-and-mortar stores, thanks to technological advancements.

The essence of BNPL lies in its provision for consumers to procure goods and services
immediately while deferring the associated payments over a designated period. This
distribution model, both online and at the point of sale, is a hallmark feature distinguishing
BNPL from traditional credit offerings, thereby allowing it to navigate regulatory frameworks
tailored for conventional financial products.

While the convenience of making purchases upfront and settling payments later appeals to
consumers seeking flexibility in managing their finances, it's imperative for individuals to
exercise due diligence by meticulously reviewing the terms and conditions accompanying
these arrangements. Hidden costs, potentially exorbitant interest rates, and undisclosed fees
could significantly inflate the overall expenditure, underscoring the importance of informed
decision-making.

Moreover, the utilization of BNPL arrangements can wield considerable influence over an
individual's creditworthiness and financial standing, warranting careful consideration before
engaging in such transactions. Instances of missed or delayed payments could precipitate
punitive measures such as late fees, penalties, and adverse impacts on credit reports,
potentially undermining one's financial stability.

To mitigate the risk of incurring additional expenses and safeguarding their credit profile,
consumers are advised to utilize BNPL services judiciously and adhere to payment schedules
diligently. By exercising prudence and responsibility in their financial transactions,
individuals can harness the benefits of BNPL while mitigating associated risks, thereby
fostering a more secure and sustainable financial future.

In the contemporary landscape of burgeoning e-commerce, consumers are presented with a

plethora of payment options tailored to meet their evolving needs and preferences. The

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advent of e-commerce has revolutionized the traditional paradigm of retail, wherein
individuals would physically visit establishments to procure goods. Despite the ubiquity of
online shopping, the conventional method of in-person transactions persists as a viable
alternative, underscoring the enduring relevance of traditional retail practices.

However, propelled by the inexorable tide of globalization and technological advancement,

consumers are embracing novel avenues that harness the power of the internet and existing
technologies to facilitate transactions. The emergence of the "buy now, pay later" paradigm
epitomizes this evolution, heralding a paradigm shift in consumer finance. This concept has
catalyzed the widespread acceptance of credit cards, ushering in a new era of financial
flexibility and accessibility.

Unlike conventional credit card issuance, which often necessitates stringent criteria such as
stable employment and income, the advent of pay later services has democratized access to
financial resources. By leveraging applications that can be seamlessly integrated into
smartphones, individuals from diverse socio-economic backgrounds, including students, now
have the opportunity to avail themselves of these services.

The democratization of pay later services transcends traditional barriers, extending financial
empowerment to a broader spectrum of society. The fundamental principle remains
unchanged – customers utilizing pay later services are required to settle their outstanding
balances in full on a monthly basis or as per the predetermined repayment schedule agreed
upon with the service provider.

The proliferation of pay later transactions witnessed a staggering surge of nearly 209.8%
between 2017 and 2018, driven in part by the introduction of such services in the Indonesian
market. Notable entities such as Traveloka, Ovo, and Gojek have been at the vanguard of
offering pay later options since 2017, signalling a paradigmatic shift in consumer behavior
and financial transactions.

To delve deeper into the ramifications of pay later services on consumer behavior,
particularly among college students utilizing platforms like Gpay, comprehensive research
endeavors seek to elucidate the nuanced dynamics shaping lifestyle choices and attitudes.

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Under a Buy Now, Pay Later (BNPL) arrangement, consumers enjoy the immediate
acquisition of goods and services while deferring payment over a specified timeframe. The
BNPL provider remits the purchase amount to the retailer, deducting a commission, and
subsequently disburses the funds to the customer in convenient, staggered instalments,
typically on a fortnightly basis.

In essence, BNPL represents a groundbreaking FinTech credit solution seamlessly integrated

into the point-of-sale experience, empowering consumers with the flexibility to manage their
finances while enjoying the convenience of interest-free instalments. Positioned as a third-
party entity distinct from the retailer, BNPL epitomizes the symbiotic convergence of
technology and consumer finance, heralding a new era of financial inclusivity and
convenience.

In addition to shedding illuminative insights on the burgeoning landscape of this emerging

credit product, this research endeavor serves as a testament to the potential efficacy of
leveraging real-time transactional data for regulatory oversight, particularly concerning the
emergence and associated risks of novel financial products and entities, both within and
beyond the purview of existing regulatory frameworks. By scrutinizing the proliferation of
specific products and discerning their uptake among potentially vulnerable consumer
demographics, regulators can prioritize data collection efforts, augmenting traditional
approaches with complementary sources such as surveys and data from entities that might be
sluggish in their data reporting. The invaluable role of real-time private sector data in
informing public policymaking, as exemplified during the exigencies of the COVID-19
pandemic, underscores the imperative of leveraging contemporary data streams to navigate
evolving financial landscapes.

Buy Now Pay Later (BNPL) programs have been shown to wield significant influence over
societal consumption patterns, offering consumers a streamlined avenue to procure desired
goods and services without the immediate burden of upfront payments. This newfound
convenience may engender heightened spending proclivities among individuals, fostering a
sense of financial autonomy and empowerment.

Impact of Buy Now Pay Later on Credit Score:

During the pandemic, when many physical stores are closed, "Buy Now, Pay Later" (BNPL)
options have become popular, especially among Millennials and Gen Z. Unlike credit cards,

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BNPL loans often require only a soft credit check, making them accessible to those with
limited credit history. These loans typically involve making an upfront payment followed by
three biweekly payments, without interest if paid on time. Late fees may apply for missed
payments.

BNPL appeals to younger consumers who prioritize convenience and instant gratification
over traditional credit cards, which can involve lengthy approval processes. Companies
targeting this demographic focus on quick approval and minimal paperwork, catering to their
preference for digital interactions. They often collaborate with popular brands and influencers
to promote their services on social media platforms.

Research suggests that young adults with lower financial literacy are more likely to use
BNPL services. To attract this demographic, BNPL providers tailor their products and
marketing strategies to meet their preferences. This includes developing user-friendly mobile
apps and websites, as well as partnering with influencers to generate interest and awareness.

Central to the appeal of BNPL arrangements is their streamlined application process and
expedited approval mechanisms. In a world where instantaneous gratification and seamless
digital interactions are increasingly valued, BNPL providers have capitalized on the desires
of tech-savvy consumers by offering intuitive mobile applications and user-friendly web
platforms. By prioritizing simplicity and accessibility, these services have effectively
resonated with the preferences of younger demographics who prioritize efficiency and
convenience in their financial transactions.

Furthermore, the structure of BNPL loans often involves an upfront payment followed by a
series of manageable installments, typically spread over several weeks. This framework not
only aligns with the budgeting preferences of younger consumers but also eliminates the
burden of accruing interest if payments are made promptly. However, it is essential to note
that while BNPL arrangements may initially appear less stringent in terms of credit
requirements, they still entail responsibilities for borrowers to adhere to repayment schedules
diligently.

Moreover, BNPL providers have strategically leveraged partnerships with prominent brands
and influencers to enhance their visibility and appeal to target demographics. Collaborations
with well-known companies and social media personalities have facilitated widespread
awareness and engagement, further fueling the adoption of BNPL services among young

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adults. Through compelling content, endorsements, and promotional campaigns, these
partnerships have effectively elevated the profile of BNPL offerings, positioning them as
viable alternatives to traditional credit instruments.

Nevertheless, it is crucial to acknowledge that while BNPL services cater to the preferences
of younger consumers and offer expedited access to credit, they also pose potential risks if
not managed responsibly. As with any financial product, borrowers must exercise prudence
and diligence in their usage of BNPL facilities to avoid accumulating unsustainable debt
burdens. By striking a balance between accessibility and accountability, BNPL providers can
continue to meet the evolving needs of modern consumers while promoting financial well-
being and responsibility.

Features of BUY NOW PAY LATER

The Buy Now, Pay Later (BNPL) model encompasses a plethora of features tailored to meet
the evolving needs and preferences of contemporary consumers. At its core, BNPL represents
a departure from traditional credit instruments, offering a unique blend of accessibility,
flexibility, and convenience.

One of the hallmark features of BNPL services is their streamlined application process, which
often requires minimal documentation and involves rapid approval mechanisms. Unlike
conventional credit cards or loans, which may entail extensive paperwork and stringent
eligibility criteria, BNPL providers leverage technology to facilitate seamless onboarding
experiences for users. This approach appeals particularly to younger demographics who
prioritize efficiency and instant accessibility in their financial transactions.

Moreover, BNPL arrangements typically offer flexible repayment options, allowing users to
spread their payments over a series of installments rather than settling the entire balance
upfront. This flexibility aligns with the budgeting preferences of many consumers, enabling
them to manage their expenses more effectively without incurring excessive debt.
Additionally, BNPL loans often come with transparent fee structures, including upfront

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payment schedules and clear disclosure of any potential penalties or late fees, promoting
greater transparency and consumer confidence.

Another distinguishing feature of BNPL services is their integration with digital platforms
and mobile applications, providing users with intuitive interfaces and seamless payment
experiences. By prioritizing user-friendly design and functionality, BNPL providers cater to
the preferences of tech-savvy consumers who favor digital interactions and mobile
convenience. These platforms often offer features such as real-time transaction tracking,
automated reminders for upcoming payments, and personalized recommendations based on
user behavior, enhancing the overall user experience and engagement.

Furthermore, BNPL providers frequently collaborate with a diverse range of merchants and
retailers, offering users the flexibility to make purchases across various categories and
brands. This expansive network of partners enhances the appeal of BNPL services, allowing
users to access a wide array of products and services while leveraging flexible payment
options. Through strategic partnerships and integrations, BNPL providers aim to create a
seamless ecosystem that encompasses both online and offline retail experiences, further
solidifying their position as preferred payment solutions for modern consumers.

The potential risks associated with BNPL services

While Buy Now, Pay Later (BNPL) services offer undeniable convenience and flexibility,
they also carry certain potential risks that consumers should be mindful of in the latest
context of evolving financial landscapes. One notable risk is the temptation of overspending.
With the ease of making purchases through BNPL arrangements, consumers may be enticed
to buy items beyond their means or budget, leading to a cycle of debt accumulation. This is
particularly pertinent in the current digital era, where online shopping platforms and mobile
apps make it effortless to browse and purchase products with just a few clicks.

Moreover, BNPL services may obscure the true cost of purchases, especially if users opt for
deferred payment options or fail to carefully review the terms and conditions. While BNPL
providers often advertise interest-free periods and flexible repayment schedules, users must
remain vigilant about potential fees, penalties, and interest rates that may apply if payments
are missed or delayed. In the age of digital transactions and instant gratification, it's easy for

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consumers to overlook these details, exposing themselves to unexpected financial burdens
down the line.

Additionally, BNPL services may impact users' credit scores and financial health if not
managed responsibly. While some BNPL providers conduct only soft credit checks for
approval, others may report payment history to credit bureaus, potentially affecting users'
credit profiles. Missed or late payments could result in negative marks on credit reports,
making it harder to access favorable lending terms in the future.

Furthermore, the rapid growth and popularity of BNPL services have attracted increased
scrutiny from regulators and consumer advocacy groups. The lack of uniform regulations and
oversight in the BNPL sector raises concerns about consumer protection, transparency, and
fair lending practices. Without robust regulatory frameworks in place, consumers may be left
vulnerable to predatory lending practices, hidden fees, and misleading advertising tactics.

continue to gain traction in the dynamic landscape of consumer finance, they encounter a
host of complex challenges that warrant meticulous examination and proactive management.
One of the foremost hurdles confronting the BNPL industry is the pervasive risk of
overindebtedness among consumers. While these services offer the allure of immediate
gratification coupled with deferred payment options, there exists a palpable danger of
individuals succumbing to the temptation of overspending beyond their financial means. In
an era characterized by rampant consumerism and digital convenience, the ease with which
purchases can be made through BNPL arrangements can lead to a precarious cycle of debt
accumulation, thereby exacerbating financial vulnerability and strain.

Furthermore, the regulatory landscape surrounding BNPL services remains fragmented and
nebulous, presenting significant challenges in terms of ensuring robust consumer protection
and fair lending practices. The absence of standardized guidelines and oversight mechanisms
heightens the risk of predatory lending practices, opaque fee structures, and deceptive
marketing tactics, thereby undermining consumer trust and confidence in the integrity of
these financial products. Addressing these regulatory gaps and fostering a more transparent
and accountable BNPL ecosystem is imperative to safeguarding the interests of consumers
and fostering a level playing field for market participants.

Moreover, the rapid proliferation of BNPL services has brought to the forefront concerns
regarding data privacy and security. Given the vast troves of personal and financial
information collected and processed by BNPL providers, ensuring the robust protection and

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ethical stewardship of this data is paramount. Heightened scrutiny from regulators, coupled
with growing consumer awareness and expectations surrounding data privacy, necessitates a
concerted effort on the part of BNPL operators to implement stringent security protocols,
robust encryption mechanisms, and transparent data handling practices. Failure to adequately
address these concerns not only jeopardizes consumer trust but also exposes BNPL providers
to regulatory sanctions and reputational damage.

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LITERATURE REVIEW:

Gerrans et al. (2021), surveyed young adults to understand how they use Buy Now Pay
Later (BNPL) compared to credit cards and how their financial skills play a role. They found
that those who are good with money tend to benefit less from BNPL, while those with less
financial knowledge often see more advantages. BNPL is a type of financial technology that
combines a simple idea (paying in instalments) with modern methods (online and in-store)
and has changed how people borrow money for short-term needs. Unlike similar products,
BNPL doesn't charge interest, which makes it appealing and avoids some of the worries
associated with traditional credit checks.

Sekarang, A., Munro, E., & Patel, R. (2022), discovered that while Buy Now Pay Later
(BNPL) can be helpful for many people, including college students, students still face some
challenges with it. They identified three main factors of BNPL services: transaction benefits,
transformational advertising, and discounts. Their study showed that transaction benefits and
discounts significantly affect students' daily lives, but transformational advertising doesn't
have as much of an impact. Transaction benefits, like convenience, partially influence
people's lifestyles positively. Transformational advertising, which tries to change people's
perceptions, doesn't have a notable effect on lifestyle. Discounts, however, have a practical
influence on people's lifestyles, partially shaping how they live.

Alcazar & Bradford (2021), studied how fintech companies are expanding their offerings of
"buy now pay later" products for consumers and merchants. They looked at the benefits and
possibilities of these alternative payment methods for both buyers and sellers. The
researchers also explored how banks, payment networks, and regulators are responding to the
rise of BNPL products. They found that the number of BNPL providers is growing, and both
buyers and sellers are increasingly willing to use these products. Banks and payment
networks are expanding their services by collaborating with, acquiring, or competing with
BNPL providers.

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Vaxjo (2020), aimed to understand how personality traits relate to the misuse of "buy now,
pay later" options when shopping online with credit. The study suggests who might be more
prone to misuse these payment choices and gives advice on avoiding financial troubles.
Surprisingly, one item in the study, which asked about regretting purchases made with credit,
had an unexpected correlation with other items. Instead of expecting regret to indicate credit
misuse, it seemed to suggest the opposite. Understanding a person's personality before giving
them credit could help prevent late payments and financial losses. Being aware of one's own
personality traits and any tendency to misuse credit might also help individuals make wiser
financial decisions.

Choi (2001), wanted to understand how credit card ads in print media use different messaging
techniques to appeal to consumers. They focused on informational and transformative appeals,
considering the credit card as a high-involvement product. According to the FCB Grid, which
categorizes products based on consumer involvement, it's suggested to use informational appeals
for products like credit cards to trigger cognitive motivations. The study aimed to see if credit
card ads followed this advice or used a different approach. They also looked at whether ads were
for co-branded cards or individual ones. They analyzed 245 ads from seven magazines between
1994 and 2003, like Money and Glamour, tagging each ad for its overall features and content.

Mbanyi & Khan (2022), wanted to understand how Buy Now Pay Later (BNPL) affects
millennials' decisions when buying fashion items and how it influences their clothing
consumption. They found that several factors play a role in millennials' BNPL purchases,
such as familiarity, trustworthiness, transparency, and innovativeness, which affect their
desire for variety, impulse buying, loyalty to brands, and reducing any feelings of
uncertainty. Additionally, convenience, price sensitivity, and attractiveness influence their
clothing consumption through their buying habits and patterns. The study aimed to answer
questions about how BNPL impacts millennials' fashion purchases and clothing consumption.

Gilbert, M., & Scott, L. (2021). discovered that Buy Now Pay Later (BNPL) plans are
growing in popularity, and they don't fall under consumer finance regulations. This means
lenders can offer BNPL to people with fewer restrictions. Since there aren't requirements to
check if someone can afford BNPL or if they're already in debt, users might misuse it and end

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up with too much debt. BNPL lets customers buy something and pay for it in 4-6 equal parts,
but current rules don't cover it, so BNPL providers can bypass existing consumer protections.

Aggarwal el al.(2009) , discuss different regulatory approaches available to policymakers

and regulators when making decisions about finance. These approaches vary based on how
much control the policy and regulator have over individuals' choices. It's hard to determine
which strategy is the most effective. In situations where there's a big difference in power and
knowledge between those selling a product or service and those buying it, there have been
cases of financial misconduct in the financial sector.

Oliver (2021) , introduces a new concept in consumer behavior called "consumer financial
spinning." It occurs when consumers who are also borrowing risky financial products end up
with overwhelming debt and lose sight of their original financial priorities, like saving
money, building wealth, and managing their family's assets. The author suggests that by
rethinking some basic ideas in traditional financial theory, we can better understand how
consumers behave in risky financial situations. This would help us see the unintended
consequences of their actions. Since consumer financial spinning is a new concept with
limited research, the study aims to provide a fresh, interdisciplinary perspective on it.

Pratika et al. (2021), discovered that with technological progress, consumers are
increasingly drawn to digital payments. These methods offer convenience and allow
consumers to fulfill their needs easily. Similar to using a credit card, digital payments let
customers buy things and pay for them later. The study found a connection between pay-later
options and credit, as both involve allowing customers to make purchases even if they don't
have the money upfront. This pay-later feature can lead to impulse buying. However, it's
important to note that the study only analyzed data from online news sources.

Johnshon et al., (2021) , studied the growing use of fee-based Buy-Now-Pay-Later (BNPL)
services in many developed countries. They found that there's little regulation specifically
addressing fee-based BNPL, leaving it largely unregulated. The study looked at the
regulatory impact of fee-based BNPL using a method that focuses on outcomes and market
failures influenced by behavior. Since many consumers may struggle to understand the
complexities of fintech services like BNPL, there's a need for special care and protection.

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Taking a behaviourally informed approach to regulating fintech could be helpful in the future,
making these services more sustainable and safer for consumers.

Guttman-Kenney et al., (2022) ,conducted the first economic analysis of "buy now, pay
later" (BNPL), a FinTech credit service allowing customers to spread payments without
interest. They found that BNPL transactions often ended up on credit cards, posing higher
risks for consumers. This shift to credit cards, which typically carry around a 20% APR until
the balance is cleared, raises concerns for regulators. Given the lack of data on the BNPL
market, these findings underscore the need for informed discussions on regulating BNPL
services.

L. Regens and P. Lauth (2022), conducted an empirical review spanning from 1950 to 1989,
analyzing state debt trends. Their study reveals a preference among consumers for long-term
debt over short-term obligations. They also note a significant transition from general
obligation debt to nonguaranteed debt over this period. Furthermore, they find that the
increase in long-term debt, when adjusted for inflation, has been relatively modest. This
research provides both factual and ethical insights into the historical trend of state debt
accumulation following World War II.

B. Gabler and E. Reynolds (2022), propose a novel approach to pricing strategies tailored
to new customer dynamics. They suggest implementing a pricing strategy aimed at (1)
increasing store visits, (2) reducing inventory size to cut warehouse costs, and (3)
maximizing profits by understanding the impact of scarcity and price promotions on
purchasing decisions. This study explores the effects of such a pricing strategy on consumer
behavior. Their findings suggest that the level of discount influences the purchase of highly
visible items, while scarcity drives the purchase of less visible ones. This underscores the
importance of strategic pricing in optimizing sales and profitability in today's market
landscape.

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Di Maggio et al (2022) ,, conducted research on businesses offering point-of-sale installment
loans through "buy now, pay later" (BNPL) options, revealing an increased market share in
short-term unsecured consumer borrowing. The availability of BNPL options leads to higher
overall spending levels and a notable increase in retail expenditure, surpassing explanations
based solely on intertemporal and static substitution effects. By analyzing transaction-level
data from bank accounts and credit cards, they offer a comprehensive examination of the US
BNPL market, providing insights into consumer behavior and market dynamics.

Johannesson (2021), it's revealed that consumers utilizing "Buy Now, Pay Later" (BNPL)
services can defer payment for purchases in exchange for short-term debt. While BNPL
services have a longstanding history, their primary market focus has shifted towards digital
invoicing services. The strategic goal for digital invoicing services is to empower customers
to select credit installment options that align with their business model, particularly since a
substantial portion of their revenue stems from deferred payments. This research underscores
the evolving landscape of financial services and the growing significance of digital invoicing
within the BNPL sector, highlighting the importance of tailored payment solutions for
businesses.

Thakur Chandan et al (2020), conducted a survey to gather insights into impulsive buying
behaviors among various consumer groups. Drawing conclusions from their data analysis,
they shed light on several facets of impulsive purchasing. This study delves into the
phenomenon of irrational buying during an epidemic and the root causes behind it. Notably,
the research observes a surge in instinct-driven purchasing following the pandemic compared
to pre-pandemic levels. The increased time spent online by consumers during lockdown
periods is identified as a contributing factor to this trend. This research provides valuable
insights into the evolving consumer behavior landscape during times of crisis, highlighting
the impact of external factors such as pandemics on impulsive purchasing habits.

Kuo (2022), highlights the growing influence of fintech-driven solutions on the behavior of
both retail consumers and financial markets. Focusing specifically on the increasing
popularity of "buy now, pay later" (BNPL) services, the study seeks to understand how this
digitally mediated economic model has shaped new financial identities and behaviors. Central
to this exploration is the concept of platform-driven financial innovation. Through the lens of

[18]
financial ecology, the paper demonstrates how the adoption of computerized credit risk
assessment and debt collection processes has reshaped the financial subjectivities of a
growing segment of consumer subjects. This research makes a significant contribution to the
literature on the spatial dimensions of money and finance, providing insights into the
transformative effects of technology on financial practices and identities in contemporary
society.

Siemens (2007), conducted research on "buy now, pay later" transactions, viewing them as
real monetary exchanges where individuals encounter various delays in the assessment of
benefits and costs. The study revealed that individuals experienced greater satisfaction when
costs and benefits were temporally aligned during the transaction. This suggests that there's a
threshold of time after which the psychological value of benefits starts to diminish. The
research delved into the implications of transaction timing on consumer satisfaction within
the context of "buy now, pay later" arrangements. Participants expressed a preference for
shorter waits over prolonged delays when a time gap was unavoidable in the transaction
process. This study provides valuable insights into the psychological dynamics of delayed
gratification and its impact on consumer behavior in financial transactions.

Khan & Haque (2020) , explore the increasing adoption of the "buy now, pay later" payment
method among consumers in the current technological era. Their research reveals a growing
trend in the utilization of this payment option, particularly for luxury goods, which correlates
with an uptick in market demand. Furthermore, the study observes a significant rise in the
annual value of purchases made through the "buy now, pay later" mechanism, suggesting an
improvement in the standard of living for users of this payment method. The researchers
employ multiple regression analysis to investigate the impact of the "buy now, pay later"
payment method on consumer behavior. Specifically, they seek to determine whether this
payment approach contributes to heightened consumer impulsivity and an enhanced standard
of living. This research sheds light on the evolving landscape of consumer payment habits
and its implications for consumer behavior and quality of life in the digital age.

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Bradford (2021), investigates the widespread adoption of "buy now, pay later" (BNPL)
payment options in numerous countries over recent years. This payment method has seen a
significant increase in popularity, with usage growing steadily day by day. The Payments
System Research Briefing conducted by Bradford delves into the advantages and risks
associated with BNPL for both consumers and businesses, comparing it to other pay-over-
time alternatives.The research findings highlight the expanding presence of third-party
providers offering BNPL services. These providers are expanding their product offerings to
cater to both consumers and merchants. The study sheds light on the evolving landscape of
payment options, emphasizing the importance of understanding the implications of BNPL
adoption for various stakeholders in the payment ecosystem.

Lee (2023), the focus is on the fintech-based technology known as "Affirm and pay later,"
which enables consumers to split their modest purchases into four installments, seemingly
without incurring interest, fees, or stringent credit checks. Companies offering "buy now, pay
later" (BNPL) services act as intermediaries between merchants and consumers, deriving
most of their profits from both parties.The study highlights concerns raised by consumer
activists regarding the potential risks associated with BNPL services. There are
apprehensions that lenders might extend credit recklessly to a younger generation, who are
particularly susceptible to "present bias." This bias tends to prioritize immediate gratification
over future consequences, potentially leading to overspending and financial strain.

Min & Cheng (2023), conducted research on "buy now, pay later" (BNPL) services and
observed a growing demand for BNPL due to technological advancements. They found that
BNPL services are perceived as easier to use compared to traditional credit card facilities,
with quicker and simpler registration processes. BNPL allows consumers to make purchases
and defer payment with 0% interest, making it an attractive option.Their analysis revealed
that facilitating conditions, perceived security, and performance expectancy are key
motivators for consumers to utilize BNPL services provided by fintech companies. The study
suggests that BNPL service providers should focus on enhancing their performance by
improving registration procedures and minimizing system outages.

[20]
Dehan et al. (2022) discovered that new users of "buy now, pay later" (BNPL) services
experience rapid increases in their credit card interest, overdraft costs, and bank expenses
compared to non-users. BNPL, a product of financial technology (Fintech), offers consumers
convenient access to credit for retail purchases primarily through Fintech platforms.
Using instrumental variable analysis leveraging pre-BNPL purchasing behavior, the
researchers determined a causal link between BNPL usage and adverse financial outcomes.
By analyzing credit card and bank transaction data, they assessed the impact of BNPL on
consumers' financial well-being.Their findings indicate that shortly after adopting BNPL,
consumers experienced heightened bank overdraft costs, increased credit card interest
charges, and incurred more credit card late fees, correlating with declines in key financial
health indicators. This research highlights the potential negative consequences of BNPL
usage on consumers' financial stability.

Mbanyi & Khan (2022), aimed to investigate the impact of "Buy Now, Pay Later" (BNPL)
services on millennials and how it influences their purchasing behavior. The study revealed
that millennials, in particular, are enthusiastic about and attracted to this new payment
method due to its numerous benefits compared to traditional payment methods.
The research also explored how BNPL-influenced consumption aligns with environmental
sustainability. It found that certain factors such as clarity, familiarity, and trustworthiness
motivate consumers, especially millennials, to purchase fashion products through BNPL
services. This study sheds light on the evolving preferences of millennials and the factors
driving their adoption of BNPL as a preferred payment method, particularly in the realm of
fashion consumption.

Lia & Natswa (2021) investigate the correlation between the propensity for
overconsumption among Generation Z individuals and their inclination to utilize "Buy Now,
Pay Later" (BNPL) services offered by Fintech or e-commerce platforms. The study
highlights the changing landscape of payment methods due to the emergence of e-wallets and
e-money, enabling individuals to make purchases conveniently through their smartphones or
other digital devices.In addition to traditional payment methods like debit and credit cards,
various electronic payment options such as mobile transfers have gained popularity alongside
the BNPL strategy. This trend has led to the proliferation of online financial service providers
offering a diverse range of credit finance products, thereby catering to the increasing demand

[21]
for flexible payment solutions among consumers, particularly the younger Generation Z
cohort.
RESEARCH GAP

People who use traditional payment method (cash method) they do not have proper
knowledge “Buy Now Pay Later” revaluation of Fintech. We know the point of view of the
people who live in the hill areas regarding BNPL Services because they do not have a proper
literacy rate and they don’t have knowledge of these services.

We have to do a survey of the overall universities and colleges

OBJECTIVES OF THE STUDY

o To assess the frequency and extent of usage of BNPL services among students.
o To identify the primary items purchased by students using BNPL services.
o To explore students' perceptions regarding the financial tool aspect of BNPL
services.
o To investigate the potential influence of BNPL services on students' academic
performance.

NEED OF THE STUDY

As compared to its global counterparts, India has emerged as a relatively recent entrant in the
Buy Now Pay Later (BNPL) market, with only a handful of companies operating in this
category. Moreover, despite the presence of approximately 69 million credit cards as of
2021, representing a penetration rate of just under 5% among the population, there remains
an inadequate supply of consumer credit to meet the growing demand. This is where the
BNPL sector in India is experiencing rapid growth in popularity. Hence, conducting research
in this domain is deemed necessary to comprehend its evolving landscape.
SCOPE OF THE STUDY
The scope of this study encompasses the widespread usage of Buy Now Pay Later (BNPL)
services across all age demographics in India, with a particular emphasis on the significant
adoption among the country's youth. The global and Indian landscape has been notably

[22]
influenced by the COVID-19 pandemic, leading to a surge in BNPL usage as people opt for
this payment method when making purchases. Notably, banks in India have entered the
BNPL sector, alongside emerging BNPL startups. Recognizing the potential synergy between
BNPL and credit cards, Indian banks are actively targeting new customer segments,
particularly individuals who have previously refrained from using traditional credit cards.

RESEARCH METHODOLOGY

From conceptualizing the research question to synthesizing the findings, a series of

methodologies are employed to conduct a research study. Research methodology

[23]
encompasses the techniques used, such as formulating hypotheses, designing questionnaires,
collecting and analyzing data, testing hypotheses, and summarizing results. Prior to
commencing the investigation, it is essential to meticulously design and review the research
approach.

In order to comprehend the purchasing behavior of students towards the "Buy Now Pay
Later" phenomenon in Fintech, a specific research methodology was adopted based on the
research objectives. This study necessitates primary data sources obtained through
questionnaires comprising both open-ended and structured questions. A Likert scale with five
points is utilized to gather data and gain insight into the factors influencing students' buying
behavior when using the "Buy Now Pay Later" technique. The questionnaire's reliability is
evaluated using Cronbach's Alpha, and the collected data is subsequently analyzed and
interpreted to derive meaningful conclusions. A minimum of 100 responses is required to
understand the behavior of students effectively. The questionnaire includes details about the
study location, research design, sampling procedure, data collection methods, tools, and
procedures for drawing conclusions and making recommendations.

RESEARCH APPROACH

In guiding researchers on the optimal strategies for sampling, data collection, and analysis in
a study, research design holds paramount importance. It enables researchers to address
research questions in a systematic and efficient manner. Depending on the nature of the
study, researchers have the flexibility to choose from four distinct research approaches:
conceptual or empirical, applied or basic, qualitative or quantitative, and descriptive or
analytical (Kothari, 2004).

RESEARCH DESIGN

[24]
A research design serves as the blueprint detailing the steps necessary to conduct a specific
study. It encompasses the framework, structure, and strategy devised to address research
questions and manage variability.

Research designs are categorized into different types, such as:

A. Exploratory research design

B. Descriptive research design

C. Causal research design

This study project employs a descriptive research methodology to elucidate, clarify, and
validate findings pertaining to student purchasing behavior. In descriptive research, variables
remain unchanged. The primary objective of this study is to discern the perceptions and
attitudes of students towards "buy now pay later" products.

Given that the aim of the investigation is to gather comprehensive and reliable information, it
is imperative to develop a well-structured process. The research design must prioritize
maximizing dependability while mitigating bias and considering the economic feasibility of
conducting the study.

Descriptive research design is favored due to its structured approach. Such investigations aim
to provide insights into the "who, what, when, and how" aspects of the issue under scrutiny.
Within descriptive research, cross-sectional and longitudinal studies are grouped together. In
this instance, a cross-sectional research approach focusing on a sample of students from a
specific population has been selected. Two types of cross-sectional studies include:

Field study

Survey research

SAMPLING PLAN:

[25]
MODE OF DATA COLLECTION
To carry out the study, students were surveyed, and their responses were promptly captured
on questionnaires. This data is essential for acquiring the pertinent information needed for
analysis. There are two types of data:

Primary data

Secondary data

PRIMARY DATA

To collect primary data, a questionnaire was utilized, which can be categorized into four main
types:

1) Structured disguised questionnaire

2) Structured non-disguised questionnaire
3) Non-structured disguised questionnaire
4) Non-structured non-disguised questionnaire

For this study, the structured non-disguised questionnaire was selected. This choice was made
because it offers a well-organized format, with questions presented in a predetermined
sequence, and respondents are informed of the purpose of the inquiry. Multiple-choice
questions were employed to ensure the questionnaire's structured nature.

The questionnaire served as the primary method for gathering data on the target population's
attitudes and preferences regarding environmentally friendly products and their purchasing
behavior. Surveys, such as questionnaires, are often preferred for descriptive and exploratory
research as they tend to yield comprehensive and generalized data

Given the objective of assessing consumers' attitudes towards environmentally friendly

products, questionnaires were deemed the most suitable tool. They excel at eliciting
information about users' opinions and sentiments.

[26]
VARIABLES CONSIDERED IN THE STUDY CONCERNING THE FACTORSUSED
IN THE QUESTIONNAIRE

To develop the survey instrument, the study drew upon data obtained from a literature review
and a group discussion. These components were designed to assess the overall understanding
of "buy now pay later" products, encompassing their features, advantages, and effectiveness.
The survey also examined the general attitudes towards buy now pay later products by
incorporating variables identified from the literature review, including confidence in the buy
now pay later product, the impact of peer influence, and willingness to use and trust buy now
pay later services.

DETAILS ABOUT DATA COLLECTION

Data collection was conducted through online surveys.

An online questionnaire was created using Google Forms and distributed to students via
email and various social media platforms. The database for this survey was compiled from a
literature review and descriptive questionnaire. Google Forms was utilized to design the
online questionnaire for distribution to interested students.

SAMPLE DESIGN

Area of the study:

Respondents from Himachal Pradesh

Sample size: 65 Respondents

TYPE OF SAMPLE DESIGN

This study targets undergraduate and postgraduate students using stratified random sampling.
An online survey collects data on BNPL usage, perceptions, and financial literacy. A sample
size of 65 is ideal. and data analysis uses statistics. Ethical measures ensure confidentiality
and voluntary participation.

[27]
TOOLS USED FOR DATA ANALYSIS -

STATISTICAL TOOLS -

Descriptive Statistics

Likert Scale: There consist of a number of statements which express either a favourable or
unfavourable attitude towards the given to which the respondents are asked to react. The
respondents respond to in terms of several degrees of satisfaction or dissatisfaction.

Limitations of the Study

- The research relies on questionnaire responses.
- The scope is limited, making it difficult to generalize findings to the entire population.
- Data is collected from 65 respondents out of 100 survey links sent.
- The sample size is restricted due to time constraints and response rates.

[28]
DATA ANALYSIS
1. Age
Sr no. Age Total no.
1 Under 18 3
2 18-22 34
3 23-27 26
4 28 and above 2

2. GENDER
Sr no. Gender Total no.
1 Male 34
2 Female 30
3 Prefer not to say 1

[29]
3. Occupation
Sr no Occupation Total no
1 Under- graduate 30
2 Post-graduate 28
3 Other 7

4. FIELD OF STUDY
SR NO Field of study Total No.
1 Art and humanities 3
2 Social science 0
3 Natural science 7
4 Engineering and technology 9
5 Management 31
6 Other 15

[30]
5. HOW OFTEN DO YOU USE BNLS

Out of 65 respondents 42 (65.6%) were rarely use BNLS, 19 (29.2%) were sometimes and 4
(6.2%). Here

Interpretation:

The majority of respondents (70.8%) use "buy now and pay later" services occasionally, with
29.2% using them rarely and 41.6% using them sometimes. This suggests that while these
services are not a frequent go-to for most users, they are still a viable option for many,
particularly in certain situations or for specific purchases.

6. What do you usually buy using buy now and pay later?

[31]
 Descriptive Statistics

Interpretation:

The data shows the categories where respondents use "buy now and pay later" services.
Clothing and accessories, and electronics are the most popular categories, with nearly half of
respondents using these services for these items. The other categories, such as food, travel,
and entertainment, are less frequent, but still significant.

 The potential influence of BNPL services on students' academic performance can

be defined as follows:
40% of students believe that BNPL services have a positive impact on their academic
performance, while 18.5% believe it has a negative impact.
41.5% of students report no impact on their academic performance.
This suggests that BNPL services may have a mixed influence on students' academic
performance, with some students benefiting from the flexibility and convenience it provides,
while others may be negatively affected by the potential financial stress and distractions it
can cause.The data indicates that BNPL services have a mixed influence on students'
academic performance, with 40% reporting a positive impact, 18.5% a negative impact, and
41.5% no impact, suggesting that the relationship between BNPL and academic performance
is complex and varied.

Financial Mean Median Mode Standard Range Coun

Literacy Deviation t

I am familiar with 3 3 1.139754 4 65

the concept of
Buy Now, Pay 2.830769
L…

[32]
I understand the 2.815385 3 3 1.013846 4 65
underlying
principles and
workings of Buy
Now Pay Later
(BNPL) services.

I am completely 2.892308 3 3 1.091488 4 65

aware of the fees
and interest rates
associated with
Buy Now, Pay
Later (BNPL)
transactions.

I understand the 2.876923 3 3 1.007901 4 65

possible
advantages of
using BNPL to
handle my
finances.

[33]
[34]
Easy to Use Mean Median Mode Standard Range Count
Deviation

I am aware of 2.861538 3 3 1.102227 4 65

the benefits
and
advantages of
using BNPL
services
while making
purchases
I am aware of 3.092308 3 3 1.041679 4 65
the risks and
disadvantages
of using the
Buy Now Pay
Later option

I believe that 3.184615 3 4 1.013846 4 65

BNPL (Buy
Now Pay
Later)
services are
useful and
easy to use
I would 3.2 3 3 1.00312 4 65
suggest Buy
Now Pay
Later (BNPL)
services to
my friends
and family

I believe the 3.092308 3 3 0.947416 4 65

interest rates
and fees for
BNPL are
fair and
reasonable

[35]
Perceived Mean Median Mode Standard Range Count
Usefulness Deviation

I am aware of 3.015385 3 3 0.9226895 4 65

BNPL terms
like
repayment
schedules
and late fees.

I've used 2.907692 3 3 1.011235 4 65

BNPL (Buy
Now, Pay
Later)
services for
the past year.

I am aware of 3.123007 3 3 1.053383 4 65

feeling
secure using
BNPL for
major
purchases
like furniture
or
technology.

I am aware 2.984615 3 3 0.926895 4 65

that I actively
seek
information
about BNPL
services to
understand
their benefits.

[36]
Payment Mean Median Mode Standard Range Count
Expectancy Deviation

I am aware of 2.892308 3 4 1.133621 4 65

how using
BNPL
services can
impact credit
scores
I am aware 3.030769 3 3 1.089283 4 65
that I can
accurately
calculate the
total cost,
including fees
and interest,
when using
BNPL
services.
I am aware of 2.923077 3 3 0.973199 4 6545
how using
Buy Now Pay
Later services
can affect my
credit nd fi.
I find myself 3.138462 3 3 1.073501 4 65
tempted to
shop more
often or
purchase
things I
wouldn't
normally
because of
the
availability of
BNPL
services.
I have 3 3 3 1 4 65
experienced a
rise in my
total debt or
financial
commitments
due to using
BNPL
services.

[37]
Mode of Payment Mean Median Mode Standard Range Count
Deviation

Thanks to BNPL 2.969231 3 3 10172194 4 65

options, I can now
afford pricier items
that I wouldn't
have bought
upfront with
traditional payment
methods.
I am more likely to 3.2 3 3 1.07819 4 65
buy something if
the "Buy Now Pay
Later" option is
available at
checkout.

I believe BNPL 3.261538 3 3 1.034966 4 65

services are more
flexible than
traditional
payments like
credit cards or cash

I believe using 3.015385 3 3 0.992036 4 65

BNPL services
instead of cash or
credit cards helps
me manage my
finances better

I shop more 3.107692 3 3 1.03264 4 65

frequently at stores
or websites that
offer Buy Now Pay
Later (BNPL)
options.

[38]
Interpretation:
The data provided shows the results of a financial literacy survey related to Buy Now, Pay
Later (BNPL) services, with 65 respondents answering various questions on a scale of 1 to 5.
The descriptive statistics for each question include the mean, median, mode, standard
deviation, range, and count. The mean scores for the questions range from 2.81 to 3.26,
indicating that overall, respondents have a slightly positive view of BNPL services. The
median scores are all 3, suggesting that the responses are evenly distributed around this value.
The mode scores are also 3 for most questions, indicating that this is the most common
response.
The standard deviation scores range from 0.92 to 1.13, indicating that there is some variation
in the responses, but not a large amount. The range scores are all 4, suggesting that the
responses are spread out over a small range of values.
The count scores are all 65, indicating that all questions were answered by the same number
of respondents. the data shows that respondents have a slightly positive view of BNPL
services, with some variation in their responses. The even distribution of responses around
the median score of 3 suggests that there is no clear consensus on the topic. The standard
deviation and range scores indicate that the responses are not widely spread out, suggesting
that the respondents have similar views on BNPL services. Overall, the data provides useful
insights into the financial literacy of respondents regarding BNPL services.

 Correlation between financial literacy (FL) and perceived usefulness (PU)

FL1 FL2 FL3 FL4 PU1 PU2 PU3 PU4

FL1 1

FL2 0.62159 1

FL3 0.56288 0.74422 1

FL4 0.55285 0.61963 0.57009 1

PU1 0.47579 0.70141 0.66577 0.40346 1

PU2 0.58273 0.51653 0.48632 0.58656 0.45163 1

PU3 0.57432 0.59551 0.56978 0.51642 0.61863 0.53190 1

PU4 0.44709 0.46053 0.40581 0.54430 0.39811 0.67091 0.59408 1

Interpretation:
The correlation table reveals that financial literacy (FL) and perceived usefulness (PU) are
composed of distinct yet related aspects. Within each group, correlations are moderate to
strong, indicating a connection between variables. The strongest correlation is between FL2
and PU1 (0.7014), suggesting that as financial literacy increases, perceived usefulness also
tends to increase. In contrast, the weakest correlation is between FL4 and PU1 (0.4035).
Overall, the table suggests that financial literacy and perceived usefulness are related but
distinct constructs, with certain aspects being more closely linked than others.

[39]
  Correlation between Payment Expectancy (PF) and Mode of Payment (MP)
PE1 PE2 PE3 PE4 PE5 MP1 MP2 MP3 MP4

PE1 1

0.63540
PE2 1 1

0.85630 0.51814
PE3 8 4 1

0.55170 0.63768 0.51885

PE4 6 4 9 1

0.64781 0.64549 0.61010 0.71320

PE5 4 3 2 4 1

MP 0.60037 0.61424 0.48770 0.69314

1 0.69122 3 9 3 5 1

MP 0.63151 0.48692 0.61052 0.65068 0.69560 0.68491

2 4 7 9 1 8 1 1

MP 0.61035 0.49169 0.54772 0.59975 0.60388 0.66358 0.65250

3 6 9 4 2 5 5 5 1

MP 0.64061 0.49117 0.56769 0.67726 0.65444 0.63518

4 7 6 2 0.43813 9 0.75287 7 9 1

MP 0.39714 0.41373 0.36597 0.53604 0.60524 0.51911 0.65397 0.61651 0.56270

5 2 5 2 8 5 5 4 1 3

Interpretation:
The correlation coefficients show how strongly different variables are related to each other.
The PE variables (1-5) are strongly correlated with each other, indicating that they measure
similar aspects of a concept. The MP variables (1-5) are also strongly correlated with each
other, suggesting they measure a different but related concept. The correlations between PE
and MP variables are moderate to strong, indicating that the two concepts are related but
distinct. the data suggests that the variables are measuring two related but separate
constructs, with some variables being more closely linked than others.

[40]
Findings:
1. The mean scores for the questions range from 2.81 to 3.26, indicating that overall,
respondents have a slightly positive view of BNPL services.

2. The median scores are all 3, suggesting that the responses are evenly distributed
around this value.

3. The mode scores are also 3 for most questions, indicating that this is the most
common response.

4. The standard deviation scores range from 0.92 to 1.13, indicating that there is some
variation in the responses, but not a large amount.

5. The range scores are all 4, suggesting that the responses are spread out over a small
range of values.

6. The data shows that respondents have a slightly positive view of BNPL services, with
some variation in their responses. The even distribution of responses around the
median score of 3 suggests that there is no clear consensus on the topic. The standard
deviation and range scores indicate that the responses are not widely spread out,
suggesting that the respondents have similar views on BNPL services. Overall, the
data provides useful insights into the financial literacy of respondents regarding
BNPL services.

8. The 43% of respondents who are aware that BNPL services allow them to make major
purchases like furniture or technology may suggest that BNPL services are considered
a valuable tool for financial management.

9. The 35% of respondents who are aware that BNPL services can impact their credit
scores may indicate that BNPL services are viewed as potentially risky financial
decisions.

10. The 46% of respondents who are aware that they can accurately calculate the total
cost, including fees and interest, when using BNPL services may suggest that BNPL
services are considered more reliable than other payment options.

[41]
11. The 46% of respondents who are aware that using Buy Now Pay Later services can
affect their credit and financial health may indicate that BNPL services are viewed as
a potentially risky financial decision.

12. The 51% of respondents who can now afford pricier items that they wouldn't have
bought upfront with traditional payment methods may suggest that BNPL services are
viewed as a valuable tool for financial management.

13. The 64% of respondents who are more likely to buy something if the "Buy Now Pay
Later" option

[42]
Conclusion:
In conclusion, the survey data offers valuable insights into students' perceptions and attitudes
towards "Buy Now Pay Later" (BNPL) services. The findings indicate that students possess a
moderate level of familiarity with BNPL, with a majority comprehending the underlying
principles and mechanics of these services. However, there is a noticeable lack of awareness
regarding the fees and interest rates associated with BNPL transactions.The survey results
reveal that students perceive BNPL services as beneficial and user-friendly, with a substantial
number recommending these services to their peers and family members. Nevertheless, there
is also a recognition of the potential risks and drawbacks associated with using BNPL
options. The data indicates that students are cognizant of the advantages of using BNPL
services for purchases, but there is a need for enhanced understanding of the terms, such as
repayment schedules and late fees. The survey findings also suggest that students are more
inclined to make a purchase when the "Buy Now Pay Later" option is available at checkout,
and they perceive BNPL services as more adaptable than traditional payment methods like
credit cards or cash.

Regarding the impact of BNPL services on students' academic performance, the survey
results do not provide a definitive answer. However, it is crucial to acknowledge that the
potential for overspending and financial mismanagement associated with BNPL services
could adversely affect students' academic performance if not managed prudently. The survey
results underscore the necessity for increased financial literacy among students regarding
BNPL services. This includes understanding the fees and interest rates associated with these
transactions, the potential risks and disadvantages, and the significance of responsible
financial management. By fostering awareness and understanding of BNPL services, students
can make informed financial decisions and steer clear of potential pitfalls.

[43]
Recommendations:

Based on the survey findings, the following recommendations can be made to improve
students' understanding and responsible use of "Buy Now Pay Later" (BNPL) services:

1. Financial Literacy Programs: Universities and colleges should implement financial

literacy programs to educate students about the benefits and risks associated with
BNPL services. These programs should cover topics such as interest rates, repayment
schedules, late fees, and the impact of BNPL services on credit scores.

2. Transparent Information: BNPL providers should ensure that all relevant information,
including fees and interest rates, is clearly communicated to users. This will help
students make informed decisions about their financial choices.

3. Responsible Marketing: BNPL providers should avoid marketing tactics that

encourage impulsive spending and instead focus on promoting responsible use of their
services. This includes emphasizing the importance of budgeting and financial
planning.

4. Credit Counselling: Universities and colleges should offer credit counseling services
to students who may be struggling with debt management. This will help students
develop healthy financial habits and avoid potential pitfalls associated with BNPL
services.

5. Collaboration with Financial Institutions: Universities and colleges should collaborate

with financial institutions to provide students with access to affordable credit options.
This will help students avoid relying solely on BNPL services for their financial
needs.

6. Monitoring and Evaluation: Universities and colleges should monitor and evaluate the
impact of BNPL services on students' academic performance. This will help identify
potential issues and develop strategies to mitigate any negative effects.

[44]
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Annexure:

Research based questions

1. How often do you use buy now and pay later services?
a) Rarely
b) Sometimes
c) Frequently
2. What do you usually buy using buy now and pay later?
a) Clothing and accessories
b) Electronics
c) Books and educational materials
d) Food and groceries
e) Travel and entertainment
f) Others
3. Do you believe BNPL services are a good financial tool for students?
a) Yes
b) No
c) Maybe
4. Do you think your academic performance has been impacted by using BNPL
services?
a) Yes, positively
b) Yes, negatively
c) No impact

Financial Literacy
5. I am familiar with the concept of Buy Now, Pay Later (BNPL) services.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree
6. I understand the underlying principles and workings of Buy Now Pay Later (BNPL)
services.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree

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 7. I am completely aware of the fees and interest rates associated with Buy Now, Pay
Later (BNPL) transactions.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree
8. I understand the possible advantages of using BNPL to handle my finances.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree

Easy to Use

9. I am aware of the benefits and advantages of using BNPL services while making
purchases.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree

10. I am aware of the risks and disadvantages of using the Buy Now Pay Later option.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree

11. I believe that BNPL (Buy Now Pay Later) services are useful and easy to use.
a- Strongly Disagree
b- Disagree
c- Neutral

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 d- Agree
e- Strongly Agree
12. I would suggest Buy Now Pay Later (BNPL) services to my friends and family.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree
13. I believe the interest rates and fees for BNPL are fair and reasonable.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree
Perceived Usefulness
14. I am aware of BNPL terms like repayment schedules and late fees.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree
15. I've used BNPL (Buy Now, Pay Later) services for the past year.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree
16. I am aware that I actively seek information about BNPL services to understand their
benefits.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree

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 17. I am aware of feeling secure using BNPL for major purchases like furniture or
technology.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree

Payment Expectancy

18. I am aware of how using BNPL services can impact credit scores.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree
19. I am aware that I can accurately calculate the total cost, including fees and interest, when
using BNPL services.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree
20. I am aware of how using Buy Now Pay Later services can affect my credit and finances.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree

21. I find myself tempted to shop more often or purchase things I wouldn't normally because
of the availability of BNPL services.

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 a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree
22. I have experienced a rise in my total debt or financial commitments due to using BNPL
services.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree

Mode of Payment

23. Thanks to BNPL options, I can now afford pricier items that I wouldn't have bought
upfront with traditional payment methods.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree
24. I am more likely to buy something if the "Buy Now Pay Later" option is available at
checkout.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree

25. I believe BNPL services are more flexible than traditional payments like credit cards
or cash.
a- Strongly Disagree

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 b- Disagree
c- Neutral
d- Agree
e- Strongly Agree
26. I believe using BNPL services instead of cash or credit cards helps me manage my
finances better.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree
27. I shop more frequently at stores or websites that offer Buy Now Pay Later (BNPL)
options.
a- Strongly Disagree
b- Disagree
c- Neutral
d- Agree
e- Strongly Agree

Demographic

28. Name
29. Age
30. Gender
31. Occupation

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