BNPL Services and Spending Behaviors of Millennial Generation in Lalitpur District

Abstract

This study examines the impact of Buy Now, Pay Later (BNPL) services on the spending habits of millennials (born between 1981 and 1996) in Lalitpur district, Nepal. It analyzes the effect of four specific BNPL characteristics: ease of use, user awareness, service accessibility, and user attitude. A quantitative, survey-based methodology was employed, collecting data from 385 BNPL users in a cross-sectional study. The data were examined using frequency distribution, percentage, correlation analysis, and regression analysis. The findings indicated that the ease of use, awareness, and accessibility of BNPL services lead to increased spending among users. In contrast, users’ attitudes towards BNPL did not show a significant influence on their spending behavior. These findings imply that efforts to mitigate potential debt risks should prioritize regulatory measures. Key recommendations include enforcing greater transparency in BNPL terms and implementing stronger controls on spending limits. The study concludes that these direct interventions may be more effective than financial literacy programs designed to alter user attitudes.