Journal Article

The Impact of Buy Now Pay Later Payment Option \BNPL\ on Consumer Buying Decisions

Shabaan, Mohamed Hussein Saad, Farid, Sherif Taher Mohammed

2024

Overview

Purpose: the main purpose of this study is to assess the impact of the Buy Now Pay Later purchase option on purchase decisions. Another aim is to empathize with this phenomenon by studying the moderating role of consumers' spending patterns, studying pervious variables in the Egyptian market. Design / methodology / approach: A sample of 360 customers using BNPL as a payment option was selected using snow-ball probability sampling, and a standardized questionnaire was undertaken using both the electronic survey (Google format), and written questionnaire. Additionally, descriptive and inferential statistics were carried out using SPSS V.29 and (SmartPLS 3) for Structural Equation Modelling- Partial Least Squares (SEM-PLS) analysis was performed to assess the hypotheses driven by the study's research model. Theoretical support will enable deeper investigation into moderating the role of consumer spending patterns in the relationship between Buy now pay later (payment option) and consumer buying decision. Findings: the results shows that Buy now pay later payment option has a significant positive impact on consumer buying decision (BNPL & consumer buying decision). all the studied features of buy now pay later payment option (availability, flexibility and convivence) found to have a strong significant impact on consumer buying decision, another finding that is crucial to the study, consumer spending patterns will not moderate the relationship between buy now pay later payment option and consumer spending patterns. Originality - value: The research findings contribute to the existing body of knowledge within the field, as well as relevant theories, by shedding light on the buy now pay later phenomenon and its consequences for both consumers and marketers. The conceptual framework of this study and all of the hypotheses were thoroughly tested using a quantitative approach and structural equation modeling with the Partial Least Square (PLS) algorithm and bootstrapping technique. Using data pooled from 360 respondents, Understanding the influence of BNPL (Buy Now, Pay Later) payment options on consumer purchasing decisions has practical implications for marketers and managers in creating informed strategies, hence, increasing purchasing intention through point-of-sales financing such as BNPL options. Previous studies have supported that affordable payment options can drive purchasing intention in various contexts. Subsequently, this research (first applied in Egypt) discusses how the findings reflect and contribute to existing literature and theories on BNPL as a new payment option and its impact on consumer buying decision testing the moderating role of consumer spending patterns.

• Publisher: جامعة قناة السويس - كلية التجارة بالاسماعيلية
• Subject: الأسواق التجارية / الإنفاق الاستهلاكي / عمليات التسوق / مصر