The Role of Financial Literacy in Moderating the Effect of Buy Now Pay Later and Consumer Motivation on Youth Consumptive Behavior

Reza Anggapratama; Rina Sulistyowati; Fharhan Hadi Sulthoni

doi:10.62794/je3s.v7i5.17

Authors

Reza Anggapratama Universitas Bojonegoro, Indonesia
Rina Sulistyowati Universitas Bojonegoro, Indonesia
Fharhan Hadi Sulthoni Universitas Bojonegoro, Indonesia

DOI:

https://doi.org/10.62794/je3s.v7i5.17

Keywords:

buy now pay later, consumer motivation, consumptive behavior, financial literacy

Abstract

The rapid development of financial technology has significantly transformed consumer payment systems, particularly through the emergence of Buy Now Pay Later (BNPL) services. The increasing accessibility of BNPL features on e-commerce platforms provides greater purchasing flexibility for consumers, especially young people who are highly engaged in digital transactions. However, this convenience may also encourage excessive consumption behavior. Therefore, this study aims to examine the effects of BNPL usage and consumer motivation on youth consumptive behavior and to investigate the moderating role of financial literacy in these relationships. The research was conducted among young consumers in Pungpungan Village using a quantitative research approach. Data were collected through a structured questionnaire distributed to 150 respondents selected using purposive sampling. The data were analyzed using Moderated Regression Analysis (MRA) to examine the direct effects of BNPL usage and consumer motivation on consumptive behavior and the moderating effects of financial literacy. The results indicate that BNPL usage and consumer motivation have positive and significant effects on youth consumptive behavior. Furthermore, financial literacy significantly moderates both relationships, but in different directions: financial literacy strengthens the positive relationship between BNPL usage and consumptive behavior, while it weakens the positive relationship between consumer motivation and consumptive behavior. These findings indicate that financial literacy does not uniformly reduce consumptive behavior but plays different moderating roles depending on the underlying behavioral driver. The study highlights the importance of strengthening financial literacy initiatives that address responsible BNPL use while also helping young consumers regulate consumption driven by personal and lifestyle motivations.

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