The Inclusion Paradox: BNPL Convenience and Low Financial Literacy Shape Financial Well-Being.

Ichtiarti Anis, Yudi Sutarso

Abstract


This study examines the gap between Indonesia’s Financial Inclusion Index and Financial Literacy Index in the context of the rapid expansion of Buy Now Pay Later (BNPL) services and assesses the Financial Well-being of BNPL users. Data were collected from users in Probolinggo City and Regency, a semi-urban area, and analyzed using Structural Equation Modeling with the Partial Least Squares (SEM-PLS) approach. The findings reveal a notable discrepancy between perceived and actual financial knowledge, indicating that users tend to overestimate their financial abilities. Financial literacy positively influences Financial Well-being and reduces impulsive and Compulsive Buying, while Digital Financial Literacy does not improve well-being and instead increases both behaviors. Conscientiousness enhances Financial Well-being and decreases Compulsive Buying but shows no significant effect on Impulsive Buying. The study’s novelty lies in its focus on small-town BNPL users rather than national or student samples, underscoring the need to strengthen financial literacy, digital competencies, and psychological awareness to foster responsible financial behavior.


Keywords


Buy Now Pay Later (BNPL), Conscientiousness, Digital Financial Literacy, Financial Literacy, Financial Well-being.

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References


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DOI: https://doi.org/10.17509/jrak.v13i3.88966

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