The Impact of Using Paylater Platforms on the Impulsive Spending Behavior of Young Professionals in General Santos City

The Impact of Using Paylater Platforms on the Impulsive Spending Behavior of Young Professionals in General Santos City

Arianlon Sweet S. Mortiga, Jayshle Louise A. Guerrero, Monsour A. Pelmin, PhD^*

Mindanao State University, General Santos City

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.905000396

Received: 17 May 2025; Accepted: 19 May 2025; Published: 19 June 2025

ABSTRACT

With technological advancement dominating the market, the rise of financial technologies like Paylater platforms captures the financial needs of its users, making their purchases convenient without immediate payment. Young professionals must learn to balance this ease to avoid making impulsive decisions. This study examines the financial behavior of young professionals in General Santos City, particularly in Pay Later platforms, and their impact on impulsive spending. A sample of 150 respondents, mostly aged 25 to 29 and primarily female, was analyzed. The results indicate a significant preference for Shopee’s PayLater service, which is used by 87.30% of the respondents, underscoring its market dominance. Correlation analysis reveals a low positive relationship, with a correlation coefficient (r) of 0.382, between PayLater usage and impulsive spending. This result suggests that platform engagement may lead to higher impulsiveness in purchasing decisions. Furthermore, a moderate positive relationship, with a correlation coefficient (r) of 0.417, exists between socioeconomic factors such as age, sex, civil status, educational attainment, income, and impulsive spending behaviors. These findings emphasize the need for financial literacy, especially among young professionals, to mitigate the risks associated with impulsive spending.

Keywords: Paylater Platforms, Impulsive Buying, Young Professionals, Buy Now Pay Later

INTRODUCTION

In the global financial setting, digital payments have caused a significant change, rapidly transforming how people and organizations make transactions, particularly with the emergence of PayLater platforms. A rapidly growing payment mode, buy-now-pay-later, allows consumers to receive their purchase immediately and pay for their purchase in several installments without any interest or fees. Some services like SPaylater, LazPaylater, TiktokPaylater, GCash’s GCredit, Maya’s PayLater, and Atome have been quite popular in the Philippines, particularly with young professionals whose spending habits and financial knowledge are still growing. These services enable immediate gratification without the upfront financial burden. This trend has gained significant traction, particularly among younger individuals and urban workers, including those employed by the private sector in General Santos City.

Fihartini et al. (2024) reveal that the convenience of paying platforms can worsen impulsive spending behavior. The study by Kahneman & Tversky (2022) shows that the ease of accessing these paylater services can trigger impulsive spending and a preference for immediate gratification, leading to potential financial distress. These causes of impulsive behavior are triggered by an irresistible force to buy and an inability to evaluate its consequences, according to Meena (2018). Thus, this study is essential for individuals, such as financial institutions, employers, and legislators, to know and comprehend the connection between spending behavior and the usage of these platforms.

Thus, the study aims to know the financial behavior of young professionals in General Santos City by examining the connection between the paylater platforms and impulsive spending behavior in a specific demographic and geographic context. The study, which focuses on young professionals in General Santos City, will provide crucial information about how financial technology affects economic activity in emerging Philippine cities, which might inform legislative strategies for protecting and raising consumer financial literacy.

Objectives of the Study

This study aims to identify whether the use of pay-later platforms can influence the impulsive spending behavior of young professionals in General Santos City and examine whether there is a significant relationship between their socio-economic profile and their level of impulsiveness.

METHODOLOGY

The study used a descriptive-correlational method that examines the usage of paylater platforms and the impulsive spending behavior of young professionals in General Santos City. The correlational method was used to determine the degree of relationship between the usage of pay-later platforms and the impulsive spending behavior of young professionals in General Santos City.

This study was conducted at General Santos City, which includes its 26 barangays, namely Apopong, Baluan, Batomelong, Buayan, Bula, Calumpang, City Heights, Conel, Dadiangas East, Dadiangas North, Dadiangas South, Dadiangas West, Fatima, Katangawan, Labangal, Lagao (1st & 3rd), Ligaya, Mabuhay, Olympog, San Isidro (Lagao 2nd), San Jose, San Miguel, Sinawal, Tumbler, Tinagacan, and Upper Labay. The stratified sampling technique was used to select 150 respondents within the age bracket of 25-34 who are currently employed and earning full-time. The researchers excluded part-time young professionals in General Santos City, as they may affect the results.

The researchers utilized an online survey method for data collection through Google Forms. They distributed it via the messaging app Messenger. A confidentiality warning was provided for the respondents in adherence to the Data Privacy Act of the Philippines (Republic Act No. 10173). There were three research instruments used in the study. Part I of the questionnaire determines the Socioeconomic profile of the young professionals in General Santos City. This data was adopted from the study of Custodio & Sabado (2022), and the data collected were interpreted using frequency distribution and percentage. Part II of the questionnaire determines the level of usage of paylater platforms. This data was adopted from the study of Serenade et al. (2024). Part III of the questionnaire determines impulsiveness in using paylater platforms. This data was adopted from the study of Sheoran (2024). Data collected were interpreted using a five-point Likert scale, 5-Strongly Agree to 1-Strongly Disagree.

The researchers used weighted mean and Pearson’s product-moment correlation to interpret the data. Finally, all data were tested at an α = 0.05 level of significance.

RESULTS AND DISCUSSION

This table shows the number and percentage of respondents based on their age bracket. More than half (85.30%) of the respondents are those aged 25-29 years old who are considered to be at the early age of their profession, and the remaining 14.70% are those 30-34 years old, who, in general, are considered to be stable in their jobs and have established their life choices. According to (Senali et al., 2022; Tatum, 2022), with the rise of the cashless society and the ephemeral nature of digitalization, payments mean that young people have grown up in an environment where payments are more straightforward, accessible, and frictionless. This is also reported by Fusaro (2013), and various studies have verified young adults’ everyday use of electronic payments such as debit cards.

Table 1. Age Group

Among the 150 participants, 58.70% were identified as female, while the remaining 41.30% were identified as male. The results revealed a notable gender-based distinction in financial behavior patterns. Specifically, female respondents demonstrated a considerably more positive attitude towards spending money than their male counterparts, displaying greater comfort with monetary transactions and less hesitation when making purchasing decisions. In the study of Putri & Hermeindito (2024), gender plays a vital role in one’s spending behavior. It shows that men pay attention to the technicalities of how fast and efficient these online platforms are. In line with this, women are more attracted to the social aspects, design, and overall shopping experience. This data shows that one’s spending behavior on online platforms depends on who and how it is being used.

Table 2. Sex

Given the profile of the respondents, Table 3 shows that most of them are single, with a percentage of 88%. Research suggests that most young professionals delay marriage due to relational doubts and financial concerns. In the study of Moraco and Curran (2012), it was found that reasons to delay marriage dwell on those two concerns. Longer relationship length, however, was associated with fewer financial concerns for optimistic-realistic individuals when compared with all others.

Table 3. Civil Status

Recent studies in the Philippines show that highly educated individuals with moderate incomes are among the most active BNPL users (Tan & Cruz, 2023). This data reveals the educational attainment of the respondents. 47.30% of the respondents are holders of Bachelor’s degrees, while 2.70% have Technical-Vocational degrees only. According to the Philippine Statistics Authority and Commission on Higher Education data, only about 16% of Filipinos aged 25 and above have completed college education as of 2020 (Philippine Statistics Authority, 2021).

Table 4. Educational Attainment

More than half of the respondents earn within the bracket of ₱10,000 to ₱ 20,000 per month, with a percentage of 52.70% of the data. This is within the minimum wage range of the country and only a little over the poverty threshold. These figures, shown in Table 5, align with Philippine income distribution patterns documented in recent research. According to the Philippine Statistics Authority (PSA), the average family income in 2018 was around ₱22,000 per month, consistent with the concentration observed in your data (Albert et al., 2018). The income distribution shown reflects the typical pyramid structure seen in developing economies, with a broad base of lower-income earners and a narrow top of high-income earners. This pattern is consistent with findings from the World Bank’s Philippines Economic Update reports that highlight persistent income inequality challenges (World Bank, 2022).

Table 5. Average Monthly Earnings

The data presented reveals the strong market dominance of the ShopeePaylater platform among the respondents. The dominant position of SPayLater reflects Shopee’s overall e-commerce market leadership in the Philippines, consistent with findings from iPrice Group (2023) that showed Shopee maintaining approximately 70% of the e-commerce market share in the Philippines by 2022. 87.30% use SpayLater, while 3.30% of the respondents use LazPayLater. LazPayLater’s limited adoption is notable given Lazada’s established presence and reflects shifting competitive dynamics in Philippine digital payments. Recent research by PayMongo and Kantar (2022) indicated that BNPL adoption is heavily influenced by user experience and seamless checkout integration, areas where Shopee has invested significantly. These results also show that most of the respondents use the Shopee application rather than the Lazada application.

Table 6. Paylater Platforms Used

The analysis indicates that more than half of the respondents using the Paylater platform spent less than ₱1,850. The results suggest that only a small number of users are willing to spend beyond that amount. Most young professionals in General Santos City earn minimum wage, which significantly influences their spending behavior. Among all spending categories, only one respondent reported spending over ₱12,950, while the rest remained below the 50% threshold.

Table 7. Monthly Spending on Paylater Platforms

The analysis of the mean scores related to the usage of paylater platforms among young professionals in General Santos City agrees with the perceived usefulness, benefits, and convenience of paylater platforms. The highest mean score of 4.10, categorized as “Agree,” relates to the statement, “I feel fortunate to receive discounts and cashback when utilizing pay later platforms.” The result shows that young professionals are generally engaged and satisfied with the financial incentives provided by the paylater platforms. The data also shows the effort made by this financial technology to attract users through the availability of discounts and cashback, as users prefer this payment method. In contrast, the lowest mean score of 4.01, classified as “Agree,” corresponds to the statement, “I believe that pay-later services can enhance accessibility to online products and services.” The result suggests young professionals are not motivated by the accessibility and flexibility of pay later platforms but rather by saving as much as possible through the benefits. The overall mean score of 4.05, classified as “Agree,” reveals that young professionals perceived the paylater platform as convenient and accessible for its usage. The result indicates intense general satisfaction with these pay-later platforms.

Table 8. Usage of Paylater Platforms

The analysis of the mean scores related to the impulsive behavior of young professionals in General Santos City. The result presents a partial agreement that there is a noticeable behavior among young professionals. The highest mean score of 2.89, categorized as “Moderately Agree,” relates to the statement, “I buy things according to how I feel at the moment.” This data suggests how emotions play a vital role in the willingness and engagement in purchasing decisions among young professionals. In contrast, the lowest mean score of 2.73, classified as “Moderately Agree,” corresponds to the statement “I see it, I buy it—describes me.” This data suggests that not all young professionals react promptly to what is currently visible and available. The overall mean score of 2.83, classified as “Moderately Agree,” reveals that young professionals in General Santos City are financially responsible, as they have a balanced approach to their spending behavior. This data also indicates a moderate tendency toward impulsive purchasing behavior. However, despite moderate impulsivity, the predominantly conservative spending patterns, which are shown in the previous table (57.30% spending less than ₱1,850 monthly on BNPL), suggest effective self-regulation. This result aligns with research by the Philippine Economic Society (Mendoza et al., 2021), showing that financial constraints often moderate the behavioral expression of impulsivity among Filipino consumers.

Table 09. Level of Impulsive Behaviour

The correlation analysis between the usage of paylater platforms and impulsive spending discloses a low positive relationship, with a correlation coefficient (r) of 0.382. The result suggests that when the usage of pay later increases, impulsive spending behavior is likely to increase as well, but nominally. This result indicates that when young professionals frequently use paylater platforms, they are more likely to become involved in impulsive spending. The p-value of 0.000001388 is at the 0.05 level. The result reveals that the relationship is statistically significant, and this is enough evidence to reject the null hypothesis.

Overall, the findings reveal that continuous engagement on paylater platforms influences impulsive spending behaviour among young professionals. Their impulsiveness may compromise their capacity to pay in the long run. However, the results reveal that using paylater platforms satisfies the financial needs of the users. The study of Devano & Pratiwi (2023) also shows the same result, where a significant relationship exists between the usage of paylater platforms and the impulsive spending behaviour. The study reveals that the availability, convenience, and benefits capture the user’s financial needs. Thus, the study of Juita et.al, 2023, revealed that the unwise use of these platforms may cause impulsive buying behavior, leading to excessive consumption and waste production that negatively affect the environment.

Table 10. Correlation Between Paylater Platforms and Impulsive Spending Behaviour

The correlation analysis between the usage of pay later platforms and the socio-economic profile revealed a moderate positive relationship, with a correlation coefficient (r) of 0.417. It shows that when the socio-economic profile changes, the impulsive spending behaviour tends to increase as well, which is related to more impulsive purchasing by young professionals. The study reveals that these socio-economic factors play an important role in influencing the impulsiveness of young professionals, especially if these paylater platforms are made accessible instantly. The study revealed a p-value of 0.0104 that signifies a significant relationship at the 0.05 level. This is enough evidence against the alternative hypothesis.

Based on study findings, the dominant socio-economic profile, most users of paylater services are females who are between 25 to 29 years of age, with an undergraduate education and a monthly income of ₱10,001 to ₱20,000. These young professionals are more vulnerable to online marketing and rising financial technologies.

Overall, the findings revealed the crucial relationship between how the socio-economic profile influences the usage of paylater platforms. The results suggest that educational institutions should not only focus on course-related subjects. They can expand their horizons on financial literacy in the curriculum to prepare students to become financially responsible young professionals in the future.

Table 11. Correlation Between Socio-Economic Profile and Impulsive Spending Behaviour

CONCLUSION

Based on the findings of the study, the following conclusions were drawn:

This study reveals significant insights into the financial behavior of young professionals in General Santos City, particularly their usage of pay-later platforms. The predominant demographic consists of individuals aged 25 to 29, primarily female, with a Bachelor’s degree and monthly incomes ranging from ₱10,001 to ₱20,000. This group’s high level of use of digital payment systems indicates how at ease they are navigating a digital world.

The analysis indicates that the increased usage of pay-later platforms may result in more impulsive buying decisions, which shows a strong correlation between these platforms and impulsive spending behavior. Given the possible risk of impulsive spending, this relationship underscores the importance of financial literacy, which may threaten each individual’s long-term financial stability.

Furthermore, the study emphasizes the need for schools to incorporate financial education to equip students with the knowledge and skills to manage their finances responsibly, especially in this technology-driven environment. Cultivating a culture of financial awareness will be essential as young professionals depend more and more on these pay-later platforms to reduce impulsive spending and encourage healthy financial behavior.

In summary, while these pay-later platforms offer convenience and benefits to each individual that may attract young users, there is a pressing need for improved financial literacy to ensure that these tools are used wisely, which ultimately contributes to healthier financial habits and better economic outcomes in the long run.