Determinants of Actual Usage of Buy Now, Pay Later Service Among Young Consumers in Vietnam

This study investigates determinants of the “Buy Now, Pay Later” (BNPL) service, a free short-term loan, in Vietnam. Specifically, the research examines the influence of digital literacy, hedonic motivation, service familiarity, lifestyle, income, willingness to incur debt, and behavioral intention on BNPL usage patterns. Data were collected through an online survey administered to 248 Vietnamese consumers who had previously utilized BNPL services. The collected data were subsequently analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine the hypothesized relationships. The findings indicate that hedonic motivation and lifestyle have a significant positive influence on the intention to use BNPL services, which in turn positively predicts actual BNPL usage behavior. However, digital risk literacy has negative effects on actual usage behavior of BNPL service. Conversely, income, familiarity, and willingness to incur debt were not found to be statistically significant predictors of BNPL usage intention. These findings elucidate the key determinants of BNPL in Vietnam, providing empirical evidence that can inform strategic decision-making for BNPL service providers, enabling them to develop targeted growth and marketing strategies.