Analysis Essential Technical and Non-Technical Aspects of Buy Now, Pay Later Service

This research delves into the influences of financial solutions, financial abilities, financial literacy, and financial control on the adoption of Buy Now, Pay Later (BNPL) services among Indonesian Gen Z consumers. Reportedly many gen z victims after using this service. Through an analysis of technical (Service Apps & UI/UX) and non-technical (Social Influence, Advertising, High Product Quality) aspects, as well as individual choice factors, it becomes apparent that financial solutions significantly impact users' decision to use BNPL. Data for the research study was collected from 373 participants using a Google survey and examined using the Partial Least Squares Structural Equation Modeling technique. The results suggest that 76.1% of usage is primarily for financial solutions, with the majority of users (gen z) falling into the demographic of women aged 21 to 23. Conversely, social influences, such as familial and peer interactions, along with advertising, play pivotal roles in shaping consumers' perceptions and decisions regarding BNPL services. Notably, consumers often turn to BNPL as a solution to financial challenges, despite exhibiting low levels of financial literacy. This underscores the urgent need for enhancing financial literacy among consumers to navigate the complexities of BNPL offerings responsibly. Moreover, the study emphasizes the importance of transparency, consumer protection, and collaborative efforts among stakeholders to address the challenges posed by inadequate financial literacy effectively.