DETERMINANTS OF OVERDUE PAYMENT BEHAVIOUR AMONG BUY NOW PAY LATER (BNPL) USERS IN TERENGGANU, MALAYSIA

Azira Husain; Izazi Naimi Mohd Fauzi; Juliani Hussain; Norzamziah Afzainizam

doi:10.33102/y901ws04

Authors

Azira Husain Faculty of Computers, Media and Technology Management, University College TATI (UC TATI), Kemaman, Terengganu, Malaysia Author
Izazi Naimi Mohd Fauzi Faculty of Computers, Media and Technology Management, University College TATI (UC TATI), Kemaman, Terengganu, Malaysia Author
Juliani Hussain Faculty of Computers, Media and Technology Management, University College TATI (UC TATI), Kemaman, Terengganu, Malaysia Author
Norzamziah Afzainizam Faculty of Computers, Media and Technology Management, University College TATI (UC TATI), Kemaman, Terengganu, Malaysia Author

DOI:

https://doi.org/10.33102/y901ws04

Keywords:

Buy Now, Pay Later (BNPL), overdue payment behaviour, financial literacy, self- control, financial stress

Abstract

The rapid development of technology has changed the business landscape all around the world. Previously business transactions happened physically and now it has shifted to the online transaction including paying activities. This study aims to assess the prevalence of Buy Now Pay Later (BNPL) usage in Terengganu and its determinants of the overdue payment. Furthermore, this study was conducted to examine the effects of financial literacy, impulsive buying, self-control, and financial stress on overdue repayment behaviour. A quantitative research design was employed using digital structured questionnaires distributed in Terengganu. Data was collected from 194 respondents and analyzed using descriptive statistics, Pearson correlation and Multiple Regression by the Statistical Package for the Social Sciences (SPSS). The finding revealed that 38.7% of respondents are BNPL users with 64. % facing overdue payments. Moreover, financial literacy and self-control have significant negative relationships with overdue payment behaviour, indicating that higher financial knowledge and stronger self-control reduce the likelihood of overdue repayments. In contrast, impulsive buying behaviour and financial stress demonstrated significant positive relationships with overdue payment behaviour, suggesting that individuals who frequently make impulsive purchases or experience financial stress are more likely to delay BNPL repayments. Somehow, financial stress and self-control showed the strongest relationships with overdue payment behaviour. In conclusion, repayment failures are primarily driven by internal psychological self-regulation deficits and external economic pressures, rather than financial knowledge alone. Future research is recommended to examine additional behavioural and socioeconomic factors and to extend the study to other regions of Malaysia.

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