A STUDY ON THE IMPACT OF BUY NOW PAY LATER (BNPL) SERVICES ON MILLENNIALS IMPULSE BUYING BEHAVIOUR AND FINANCIAL DISCIPLINE

Abstract

The study explores the effect of BNPL services on impulsive buying behaviour and financial discipline among millennials in Tiruchirappalli. In recent times, there is a shift towards cashless transactions, and BNPL has emerged as an effective means to make immediate purchases and pay at a later stage. The study employs a descriptive approach to collect primary data from 182 respondents through a structured questionnaire. Various statistical techniques including percentage analysis, descriptive statistics, correlation, regression, and mediation analysis are employed in the analysis of data. The results indicate that BNPL services lead to impulsive buying behaviour due to their various attributes such as interest-free installments, easy approval, and flexible payment methods. The use of BNPL reduces the psychological strain related to expenditures and facilitates impulsive buying behaviour. Further, the results show that excessive use of BNPL services hampers financial discipline, and it leads to a lack of savings, disrupts budgeting practices, and causes financial stress. Impulsive buying behaviour also acts as a mediator between the use of BNPL services and financial discipline. In conclusion, although BNPL services facilitate ease of purchases, it is vital to use them responsibly to avoid financial problems among millennials.