Impact of Buy Now Pay Later Services on the Spending Behavior of Generation Z Consumers in Chennai

Abstract: Buy Now Pay Later (BNPL) has undergone a huge transformation in how customers are making their purchases as compared to years past. Young consumers (Generation Z) especially prefer more flexible and technological financing options, but little empirical research has been conducted on how BNPL affects the way young consumers shop in metropolitan areas in India. Therefore, the purpose of this study is to collect and objectively study how BNPL affects how Generation Z consumers in Chennai shop using the specific areas of impulsive purchases, frequency of purchases, and financial knowledge. Using a convenience sampling approach, the study collected primary data from respondents in Chennai's Generation Z population through the use of an established questionnaire. The data analysis methods used were quantitative and included descriptive statistics, correlation, and regression analysis to test the relationship between having used BNPL and the different shopping characteristics measured.

The results of the research found that the use of BNPL had a significant positive influence on the impulsive purchasing and purchases made frequently by those who have used BNPL as well as reducing the perceived immediate financial burden. In total, however, by the results, consumers appear to have an average understanding of the repayment responsibilities that accompany this form of financing and the long-term effects of this type of financing on their financial situation.

Keywords: Buy Now Pay Later (BNPL), Generation Z Consumers, Spending Behavior, Impulsive Buying, Purchase Frequency, Financial Awareness