An Overview of the Factors Influencing Buy Now, Pay Later (Bnpl) Usage for Comfort Spending among Youths in Malaysia

The rapid growth of Buy Now, Pay Later (BNPL) services has transformed consumer purchasing behaviour, particularly among youths in Malaysia. While BNPL offers greater convenience and flexibility in managing short-term expenses, its increasing adoption has also raised concerns about excessive comfort spending and potential financial vulnerability. This paper provides an overview of the key factors influencing BNPL usage for comfort spending among Malaysian youths, focusing on income level, financial self-control, and social media and advertising. Income level plays a significant role in shaping BNPL usage, as youths with limited disposable income may rely on deferred payment options to satisfy immediate consumption needs. Financial self-control is another critical determinant, as individuals with weaker self-regulation are more likely to engage in impulsive purchases and accumulate unnecessary debt through BNPL facilities. Furthermore, the widespread influence of social media platforms and targeted advertising encourages consumption by exposing young consumers to personalized promotions, influencer endorsements, and seamless online shopping experiences, thereby increasing the likelihood of BNPL adoption for non-essential purchases. This paper synthesizes existing literature to explain how these factors interact in influencing BNPL usage and comfort spending behaviour among Malaysian youths. Understanding these determinants is important for policymakers, financial institutions, educators, and consumer advocacy groups in promoting responsible BNPL usage and improving financial literacy among young consumers. The findings highlight the need for effective financial education, stronger self-control practices, and responsible marketing strategies to reduce the risks associated with excessive BNPL dependence. This overview contributes to the growing body of knowledge on digital consumer finance by providing insights into the behavioural and socioeconomic factors that drive BNPL usage in Malaysia's evolving financial landscape.

comfort spending, financial self-control, level income, social media and advertising and BNPL

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