Study and Evolution of Buy Now Pay Later

Abstract

As A Short-Term Debt Option, Buy-Now-Pay-Later (BNPL) Agreements Have Quickly Evolved. Like Other New And Disruptive Fintech, BNPL Arrangements Defy Existing Legislation. Legislative Requirements For "Responsible Lending" That Applied To Similar Short-Term Credit Products Were Circumvented Through BNPL Arrangements. Instead Of Using Credit Cards Or Other Alternatives, BNPL Depends On "Responsible Spending" To Offer A Potentially Less Expensive Choice. We Discuss How Regulation And Accountability Interact With BNPL. A Survey Looks Into The Willingness And Aptitude For Responsible Use Of A Crucial Group (Young Adults). We Examine The Preference For BNPL In Comparison To Credit Cards, The Importance Of Financial Literacy, And Personality Attributes Including The Desire To Save Money. The Results Imply That Lower Financial Literacy Is Associated With More Advantages And Less Risks, While Higher Financial Literacy Reduces Perceived BNPL Benefits