Intention to use buy-now-pay-later payment system among university students: a combination of financial parenting, financial self-efficacy, and social media intensity

Abstract

AbstractIn the last five years, new ‘buy now pay later’ (BNPL) and digital credit services have gained popularity among young people, including university students. Despite offering processing conveniences compared to traditional consumer credit, BNPL usage among students raises concerns about the risk of unsustainable debt levels. This research aims to examine the impact of financial parenting on student’s financial self-efficacy and their use of BNPL services. In addition, the study investigated how financial self-efficacy and social media intensity (SMI) affect the relationship between financial parenting and the intention to use BNPL services. The data from 354 second-year university students were analyzed using a moderated mediation model through macro process ver 4.0. The results revealed that financial parenting positively influences financial self-efficacy and reduces university students’ likelihood of using BNPL services. Moreover, financial self-efficacy directly affects the intention to use BNPL and is a mediator between financial parenting and the intention to use BNPL. The study also found that SMI has a dual role in predicting the intention to use BNPL services and moderating the relationship between financial parenting and the student’s intention to use BNPL.

Keywords

• Intention to use buy-now-pay-later
• financial parenting
• financial self-efficacy
• social media intensity
• financial technology
• Guangchao Charles Feng, School of Communication, Hong Kong Baptist University, Hong Kong