The Impact Of Buy Now, Pay Later (BNPL) On Students Financial Awareness And Decision-Making (KEY IJP************047)

• Alanteena M M,Vidhya S

Abstract

Buy Now, Pay Later (BNPL) agreements have altered the way that consumers, particularly students, decide what to buy. BNPL offers short-term financing so that clients can purchase goods and services now and pay for them later. The financial behavior, preferences, and knowledge of students about BNPL programs are examined in this study. Although BNPL is easy and flexible, concerns have been expressed concerning the debt accumulation, overspending, and financial literacy of adolescent users. While BNPL's effects on overall consumer behavior have been the focus of numerous studies, few of these studies have specifically looked at studentsfinancial literacy and risk perceptions in connection to these schemes. To bridge this gap, this study examines key factors that influence studentsacceptance of BNPL, such as financial flexibility, convenience, and promotional incentives. The study assesses the relationships between spending habits, financial literacy, and BNPL knowledge using the statistical method regression analysis. Structured surveys are utilized to collect primary data, which is supplemented by secondary research from academic sources. Research indicates that despite BNPL's ability to make money available, many students are not completely aware of its financial implications, leading them to make hasty purchases and struggle to pay back their debt. The paper highlights the need for more thorough financial education initiatives to promote responsible usage of BNPL.