Customers can make purchases and pay the remaining amount later thanks to a type of short-term financing called buy now, pay later (BNPL). A hire purchase or instalment plan money lending process that involves customers, lenders, and merchants is how BNPL is frequently set up. Financiers pay merchants when clients purchase goods or services from them on their behalf. These sums are paid back by the clients in equal instalments throughout time. The repayment periods and number of instalments vary throughout BNPL lenders. While BNPL’s impact on consumer behavior is widely studied, gaps remain in understanding its long-term effects on debt accumulation and financial well-being, especially among students. This study examines BNPL’s influence on financial habits, spending, and debt management, highlighting the need for research on sustainability, behavioral factors, and regulatory measures. This study employs a mixed-methods approach, using a structured questionnaire for primary data and literature reviews for secondary data. With 150 respondents, it analyzes BNPL’s impact on students’ financial behavior through a 5-point Likert scale. SPSS software will be used for statistical analysis, including frequency distribution and ANOVA. The study’s findings reveal that BNPL usage significantly impacts students’ financial behavior, leading to increased non-essential spending, difficulty managing payments, and cautious debt attitudes. With most students having limited income, financial literacy programs are essential to promote responsible BNPL usage and prevent financial strain among young consumers.