The Influence of User’s Digital Financial Literacy and Perceived Risks on Buy Now Pay Later (BNPL) Adoption: A Gender’s Perspective

DOI

10.2991/978-94-6463-350-4_63How to use a DOI?

Keywords

Digital Financial Literacy; Perceived Risk; Pay later Adoption; Gender’s perspective on pay later adoption

Abstract

This study examines how gender differences affect the decision to adopt BNPL (Buy Now Pay Later) services in Indonesia. In particular, the effect of these gender differences will be seen through the user’s perception of risk and the level of users’ digital financial literacy on their decision to adopt credit online paylater services. This study surveys 257 paylater users in Indonesia through various online channels. Subsequently, the data collected from the survey is processed and analyzed using PLS Smart 3.0. This study found that while users’ perceived risk does not significantly influence BNPL adoption, users’ digital financial literacy significantly influences BNPL adoption.

Moreover, when we divide paylater users into two groups, male and female, the significant effects of financial literacy on BNPL adoption are experienced by both groups. Interestingly, however, the results also show that the magnitude of the influences of digital financial literacy on BNPL adoption is higher for females than for males, although the gap is relatively narrow due to insignificant differences in the two groups’ educational backgrounds. These gender differences in the impact of digital financial literacy on BNPL adoption may be caused by the fact that females tend to be responsible for household financial management. In addition, this study also reveals that in both gender groups. At the same time, both perceived financial risk and perceived security risk have a significant influence on users’ perceived risks, and the former has a more significant influence on perceived risk than the latter.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Verni Juita
AU  - Vera Pujani
AU  - Rida Rahim
AU  - Rita Rahayu
PY  - 2024
DA  - 2024/01/10
TI  - The Influence of User’s Digital Financial Literacy and Perceived Risks on Buy Now Pay Later (BNPL) Adoption: A Gender’s Perspective
BT  - Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)
PB  - Atlantis Press
SP  - 629
EP  - 645
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-350-4_63
DO  - 10.2991/978-94-6463-350-4_63
ID  - Juita2024
ER  -