Exploring the Association Between Buy Now, Pay Later (BNPL) Usage and Perceived Financial Well-Being 

35 Pages Posted: 23 Oct 2024

See all articles by Vivekananda Das

Vivekananda Das

University of Utah - Department of Family and Consumer Studies (FCS); University of Wisconsin-Madison

Date Written: September 15, 2024

Abstract

Buy now, pay later (BNPL) services – providing easier access to credit for retail purchases – are becoming more popular among consumers in the US. With the greater adoption of BNPL services, it is crucial to examine how these services impact the users' evaluations of their financial well-being. Using nationally representative data from the Survey of Household Economics and Decisionmaking (SHED) 2021-2023, this study explores the association between BNPL usage in the past year and perceived current financial well-being. The results of multiple regression analysis show that perceived financial well-being, on average, tends to be lower among BNPL users compared to non-users, even after controlling for socioeconomic factors, underlying financial conditions, and credit constraints. These findings suggest that broader adoption of BNPL services may worsen consumers' financial management challenges, leading to a decline in perceived financial well-being. 

Suggested Citation

Das, Vivekananda, Exploring the Association Between Buy Now, Pay Later (BNPL) Usage and Perceived Financial Well-Being  (September 15, 2024). Available at SSRN: https://ssrn.com/abstract=4957294 or http://dx.doi.org/10.2139/ssrn.4957294

Vivekananda Das (Contact Author)

University of Utah - Department of Family and Consumer Studies (FCS) ( email )

UT
United States
5854703663 (Phone)

HOME PAGE: http://https://fcs.utah.edu/people/

University of Wisconsin-Madison ( email )

Madison, WI 53706
United States

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