The Indebtedness of Generation Z in Using Buy Now, Pay Later: The Mediating Role of Materialism (A Study of BNPL Users in Jabodetabek)
Keywords: Buy Now Pay Later (BNPL), Generation Z, Indebtedness, Materialism
Abstract
Purpose – The rising popularity of Buy Now, Pay Later (BNPL) services has been accompanied by growing concerns regarding over-indebtedness. Therefore, this study aims to examine the relationships among financial literacy, risk perception, materialism, and indebtedness within the context of Generation Z BNPL users in Jabodetabek.
Methodology – A quantitative approach was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze the relationships among variables. Data were collected from 315 BNPL users selected through purposive sampling via an online questionnaire.
Findings – The findings show that financial literacy and risk perception play crucial roles in managing indebtedness among Generation Z BNPL users in Indonesia. However, materialism acts as a mediating mechanism, whereby the pursuit of happiness and social status through possessions connects financial literacy and risk perception to higher levels of indebtedness.
Originality – This study offers originality by focusing on the mediating role of materialism in the relationships between financial literacy, risk perception, and indebtedness within the Indonesian BNPL context.
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