The Influences of Service Quality, E-Trust, and Perceived Risk Factors on Utilitarianism and Hedonism in PayLater Use

PayLater is a payment mechanism that allows users to use it as an alternative for the users who need to acquire their needs but want to pay it later because PayLater services provided the same concept as credit card, which may be related to impulsive buying behavior. Since the era of e-commerce, people tend to use Buy Now PayLater (BNPL) as their most used payment method to fulfill their daily needs especially when PayLater can be accessed through an application or through an e-commerce. According to a Buy Now PayLater (BNPL) survey conducted in 2021, there is an increase in online buying behavior during the Covid-19 pandemic, which is expected to expand in the next five years. As a result of this phenomena, this study is going to analyze factors that may have an impact on the intention to use PayLater in online buying in this study. Based on previous research that was conducted in Batam in 2022, through questionnaires and data collection, it was stated that most of these factors influence users to use PayLater which cause impulsive buying. But unfortunately, previous research only explained how perceived factors influence impulsive buying in PayLater uses. While in this study will explain more about the other factors that influence impulsive buying in PayLater uses such as Service Quality, Perceived Risk and ETrust on Utilitarianism and Hedonism that will impact users to use PayLater. This study carries out quantitatively using the SEM-PLS technique. This study included 243 participants and it discovered that three factors had an impact on intention to use PayLater although the perceived risk factor has a greater beneficial impact on women than men, it has a greater negative impact on men. The factors used in this study represent 51% and there are still 49% other factors that can still be developed, for example, the shopping habits and the purchase of luxury goods for PayLater users, and others. The findings from this research are very usful for the industry, especially for developing PayLater.