To What Extent Does BNPL Usage Promote Irrational Purchase and Reduce Price Sensitivity among Young Online Consumers
Research Article
Open Access
CC BY

To What Extent Does BNPL Usage Promote Irrational Purchase and Reduce Price Sensitivity among Young Online Consumers

Yilei Jiang 1* Ruiqi Liu 2, Ruihan Ma 3, Yijun Ming 4
1 Donghua University
2 Nanjing Foreign Language School
3 Sun Yat-sen University
4 Wuhan Britain-China School
*Corresponding author: 15601792073@163.com
Published on 11 November 2025
Volume Cover
AEMPS Vol.240
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-527-1
ISBN (Online): 978-1-80590-528-8
Download Cover

Abstract

This study investigates the impact of Buy-Now, Pay-Later(BNPL) application on consumer purchase behavior and price sensitivity. Our findings suggest that different BNPL schemes will lead to opposite results, and the outcomes also vary when considering different specific products. We examine impulsive buying behavior across three customer segments, which are defined by three key dimensions: the buying decision-making process, the difficulty of reaching a decision, and the experience of post-purchase regret. We also apply several questionnaires to set diverse purchasing scenarios and send them to respondents through network. Our data reveals that month-end BNPL usage will promote the overall purchase, while installment-based BNPL usage will lead to decreased purchase when the price turns out to be five-sevenths of the total balance. It is worth noting that this effect becomes increasingly evident as the price accumulates, yet such effect fades away once a state of full balance is reached. Additionally, this phenomenon is concentrated among those with independent sources of income. Our study also highlights the appropriate application and regulation of BNPL could boost the sales of online merchants as well as assisting individuals with effective handling of their finance management and better financial health.

Keywords:

Buy-Now, Pay-Later, deferred payment, impulsive buying, consumer regret

View PDF
Jiang,Y.;Liu,R.;Ma,R.;Ming,Y. (2025). To What Extent Does BNPL Usage Promote Irrational Purchase and Reduce Price Sensitivity among Young Online Consumers. Advances in Economics, Management and Political Sciences,240,9-30.

References

[1]. Song, J. (2024) Buy now, pay later: Beyond "convenience". China Econ. Weekly, (23): 78-79. (in Chinese)

[2]. Thaler, R. (1985) Mental accounting and consumer choice. Mark. Sci., 4(3): 199-214.

[3]. Nisa, F., Alfarisi, M.F., Hamidi, M. (2025) Analyzing the Determinants of BNPL Users Among Young People in West Sumatera: A Logistic Regression Approach. J. Account. Finance Manag., 5(6): 1651-1666.

[4]. Soman, D. (2003) The mental accounting of sunk time costs: Why time is not like money. J. Behav. Decis. Mak., 16(4): 259-272.

[5]. Prelec, D., Loewenstein, G. (1998) The red and the black: Mental accounting of savings and debt. Mark. Sci., 17(1): 4-28.

[6]. Xiong, Y., Guo, J., Zhang, Y. (2022) Pleasure of paying when using mobile payment: Evidence from EEG. Front. Psychol., 13: 1004068.

[7]. Van der Cruijsen, C., Jonker, N. (2024) Paying in a blink of an eye: It hurts less, but you spend more. Econ. Model., 126: 106605.

[8]. Gourville, J.T. (1998) Pennies-a-day: The effect of temporal reframing on transaction evaluation. J. Consum. Res., 24(4): 395-408.

[9]. Burson, K.A., Larrick, R.P., Lynch, Jr., J.G. (2009) Six of one, half dozen of the other: Expanding and contracting numerical dimensions produces preference reversals. Psychol. Sci., 20(9): 1074-1078.

[10]. Federal Reserve Bank of Richmond. (2023) Buy now, pay later: Pricing and promotion implications. https: //www.richmondfed.org/

[11]. Consumer Financial Protection Bureau. (2022) Buy now, pay later: Market trends and consumer impacts. https: //www.consumerfinance.gov/

[12]. Maesen, S., Ang, D. (2025) Buy now, pay later: Impact of installment payments on customer purchases. J. Mark., 89(3): 13-35.

[13]. Ashby, R., Sharifi, S., Yao, J., Ang, L. (2025) The influence of the buy-now-pay-later payment mode on consumer spending decisions. J. Retail., 101: 103-119.

[14]. Juita, V., Pujani, V., Rahim, R., Rahayu, R. (2023) Understanding impulsive buying behaviour among buy now pay later (BNPL) users and its implication for overconsumption and the environment. Manag. Anal. J., 12(4): 433-440.

[15]. Juita, V., Pujani, V., Rahim, R., Rahayu, R. (2024) Dataset on online impulsive buying behavior of buy now pay later users and non-buy now pay later users in Indonesia using the stimulus-organism-response model. Data Brief, 54: 110500.

[16]. Burg, V., Keil, J. (2025) "Buy Now, Pay Later" and Impulse Shopping. SSRN.

[17]. Kumar, A., Salo, J., Bezawada, R. (2024) The effects of buy now, pay later (BNPL) on customers' online purchase behavior. J. Retail., 100(4): 602-617.

[18]. Di Maggio, M., Janke, N., Kalda, A., Yao, V. (2022) Buy now, pay later: New facts from transaction and credit bureau data. Natl. Bur. Econ. Res., Working Paper 30434.

[19]. Fihartini, Y., Ramelan, M.R., Wiryawan, D., Ratuain, R.I.Q., Salsabila, D. (2024) The "Buy Now, Pay Later" Payment System's Role in Triggering Impulse Buying with Self-Control as Moderation. J. LaTeX Templates.

[20]. Cheng, Y., Huo, X. (2025) Adoption of Buy Now, Pay Later (BNPL): A time inconsistency perspective. Sustainability.

[21]. Waliszewski, K., Solarz, M., Kubiczek, J. (2024) Factors influencing the use of Buy Now Pay Later (BNPL) payments. Contemp. Econ., 18(4): 444-457.

[22]. Raj, V.A., Jasrotia, S.S., Rai, S.S. (2024) Role of perceived risks and perceived benefits on consumers behavioural intention to use Buy-Now, Pay-Later (BNPL) services. J. Facil. Manag..

[23]. Empower. (2025) Millennials’ BNPL usage and financial dependency. https: //www.starkvilledailynews.com/online_features/money_and_finance/millennials-will-spend-nearly-400-on-back-to-school-according-to-new-research/article_08b52839-8059-529d-9bf3-374790c3d54f.html

[24]. Rysman, M. (2007) An empirical analysis of payment card usage. J. Ind. Econ., 55(1): 1-36.

[25]. Kusmalinda, T. (2025) Systematic Literature Review: Consumer Behavior In The Use Of Credit Cards And Pay Later Payment Systems. J. Impresi Indones., 4(1): 1038-1051.

References

[1]. Song, J. (2024) Buy now, pay later: Beyond "convenience". China Econ. Weekly, (23): 78-79. (in Chinese)

[2]. Thaler, R. (1985) Mental accounting and consumer choice. Mark. Sci., 4(3): 199-214.

[3]. Nisa, F., Alfarisi, M.F., Hamidi, M. (2025) Analyzing the Determinants of BNPL Users Among Young People in West Sumatera: A Logistic Regression Approach. J. Account. Finance Manag., 5(6): 1651-1666.

[4]. Soman, D. (2003) The mental accounting of sunk time costs: Why time is not like money. J. Behav. Decis. Mak., 16(4): 259-272.

[5]. Prelec, D., Loewenstein, G. (1998) The red and the black: Mental accounting of savings and debt. Mark. Sci., 17(1): 4-28.

[6]. Xiong, Y., Guo, J., Zhang, Y. (2022) Pleasure of paying when using mobile payment: Evidence from EEG. Front. Psychol., 13: 1004068.

[7]. Van der Cruijsen, C., Jonker, N. (2024) Paying in a blink of an eye: It hurts less, but you spend more. Econ. Model., 126: 106605.

[8]. Gourville, J.T. (1998) Pennies-a-day: The effect of temporal reframing on transaction evaluation. J. Consum. Res., 24(4): 395-408.

[9]. Burson, K.A., Larrick, R.P., Lynch, Jr., J.G. (2009) Six of one, half dozen of the other: Expanding and contracting numerical dimensions produces preference reversals. Psychol. Sci., 20(9): 1074-1078.

[10]. Federal Reserve Bank of Richmond. (2023) Buy now, pay later: Pricing and promotion implications. https: //www.richmondfed.org/

[11]. Consumer Financial Protection Bureau. (2022) Buy now, pay later: Market trends and consumer impacts. https: //www.consumerfinance.gov/

[12]. Maesen, S., Ang, D. (2025) Buy now, pay later: Impact of installment payments on customer purchases. J. Mark., 89(3): 13-35.

[13]. Ashby, R., Sharifi, S., Yao, J., Ang, L. (2025) The influence of the buy-now-pay-later payment mode on consumer spending decisions. J. Retail., 101: 103-119.

[14]. Juita, V., Pujani, V., Rahim, R., Rahayu, R. (2023) Understanding impulsive buying behaviour among buy now pay later (BNPL) users and its implication for overconsumption and the environment. Manag. Anal. J., 12(4): 433-440.

[15]. Juita, V., Pujani, V., Rahim, R., Rahayu, R. (2024) Dataset on online impulsive buying behavior of buy now pay later users and non-buy now pay later users in Indonesia using the stimulus-organism-response model. Data Brief, 54: 110500.

[16]. Burg, V., Keil, J. (2025) "Buy Now, Pay Later" and Impulse Shopping. SSRN.

[17]. Kumar, A., Salo, J., Bezawada, R. (2024) The effects of buy now, pay later (BNPL) on customers' online purchase behavior. J. Retail., 100(4): 602-617.

[18]. Di Maggio, M., Janke, N., Kalda, A., Yao, V. (2022) Buy now, pay later: New facts from transaction and credit bureau data. Natl. Bur. Econ. Res., Working Paper 30434.

[19]. Fihartini, Y., Ramelan, M.R., Wiryawan, D., Ratuain, R.I.Q., Salsabila, D. (2024) The "Buy Now, Pay Later" Payment System's Role in Triggering Impulse Buying with Self-Control as Moderation. J. LaTeX Templates.

[20]. Cheng, Y., Huo, X. (2025) Adoption of Buy Now, Pay Later (BNPL): A time inconsistency perspective. Sustainability.

[21]. Waliszewski, K., Solarz, M., Kubiczek, J. (2024) Factors influencing the use of Buy Now Pay Later (BNPL) payments. Contemp. Econ., 18(4): 444-457.

[22]. Raj, V.A., Jasrotia, S.S., Rai, S.S. (2024) Role of perceived risks and perceived benefits on consumers behavioural intention to use Buy-Now, Pay-Later (BNPL) services. J. Facil. Manag..

[23]. Empower. (2025) Millennials’ BNPL usage and financial dependency. https: //www.starkvilledailynews.com/online_features/money_and_finance/millennials-will-spend-nearly-400-on-back-to-school-according-to-new-research/article_08b52839-8059-529d-9bf3-374790c3d54f.html

[24]. Rysman, M. (2007) An empirical analysis of payment card usage. J. Ind. Econ., 55(1): 1-36.

[25]. Kusmalinda, T. (2025) Systematic Literature Review: Consumer Behavior In The Use Of Credit Cards And Pay Later Payment Systems. J. Impresi Indones., 4(1): 1038-1051.

Cite this article

Jiang,Y.;Liu,R.;Ma,R.;Ming,Y. (2025). To What Extent Does BNPL Usage Promote Irrational Purchase and Reduce Price Sensitivity among Young Online Consumers. Advances in Economics, Management and Political Sciences,240,9-30.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICFTBA 2025 Symposium: Data-Driven Decision Making in Business and Economics

ISBN: 978-1-80590-527-1(Print) / 978-1-80590-528-8(Online)
Editor: Lukášak Varti
Conference website: https://2025.icftba.org/Bratislava.html
Conference date: 12 December 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.240
ISSN: 2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:

1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.

2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.

3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).

For authors
For editors
For reviewers

Cookies are used by this site.
Copyright © 2024 EWA Publishing, its licensors, and contributors. All rights reserved, including text and data mining, AI training, and similar technologies.