EVALUATING THE IMPACT OF RESPONSIBLE FINANCIAL BEHAVIOR ON FINANCIAL WELL-BEING OF BUY-NOW-PAY-LATER USERS IN INDONESIA

• Main Author: Kenian Irsya, Daffa
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/84120
• Institution: Institut Teknologi Bandung

The rapid adoption of Buy Now, Pay Later (BNPL) services in Indonesia has significantly impacted consumer spending behaviors, especially among young adults. As BNPL is unregulated, it places greater responsibility on purchasers' financial behaviors, which is problematic given the primary users' low financial literacy. This research aims to analyze financial well-being differences among BNPL users, assess the impact of responsible financial behavior, and explore how compulsive buying mediates the relationship between impulsive buying and financial well-being. Additionally, it examines how financial and digital financial literacy moderate the relationship between understanding terms and conditions, planning, budgeting, and financial well-being. Structural Equation Modeling (SEM-PLS) was employed to analyze the relationships. The results indicate significant interactions between responsible financial behaviors and financial well-being, mediated by compulsive buying behaviors. Higher financial and digital literacy levels positively moderate the effectiveness of financial behaviors, enhancing financial stability. Specifically, financial literacy amplifies the benefits of understanding terms and conditions and effective budgeting, while digital financial literacy strengthens the impact of financial management practices in digital contexts. Compulsive buying emerged as a critical mediator, linking impulsive buying negatively to financial well-being, suggesting higher impulsivity worsens financial health through increased compulsive purchasing. The study underscores the need for targeted financial education addressing both traditional and digital literacy to mitigate BNPL-related risks. These findings offer valuable insights for policymakers and financial service providers to develop strategies that enhance consumer protection and promote healthier financial habits among BNPL users in Indonesia.