A Study on Consumer Adoption and Credit Risk of Buy Now Pay Later (BNPL) Services among Young Consumers

The rapid evolution of financial technology (FinTech) has led to the emergence of innovative digital credit solutions such as Buy Now Pay Later (BNPL). These services enable consumers to make immediate purchases and repay the amount over a short-term period, thereby enhancing purchasing flexibility. This study aims to examine consumer adoption of BNPL services and assess the associated credit risks among young consumers. A descriptive research design was adopted, and primary data were collected using a structured questionnaire from 107 respondents. The study evaluates key factors influencing BNPL adoption, including user accessibility, payment convenience, and financial flexibility. Additionally, it investigates risks such as delayed repayments and excessive borrowing. The findings provide valuable insights into consumer financial behaviour and offer implications for digital lending institutions and regulatory bodies such as the Reserve Bank of India.