The Role of Financial Literacy and Religiosity in the BNPL Misuse: The Case of Indonesia’s Generations Y and Z

This study examines the factors that cause excessive use of Buy Now, Pay Later (BNPL) in Indonesia. This research focus on variables such as financial literacy, risk perception, credit attitude, impulsiveness, economic vulnerability, materialism, and religiosity. This study also analyzes the moderating effect of religiosity and other demographic factors. Based on the data collected from 318 respondents among Generations Y and Z, the researcher tested the conceptual model using Partial Least Square-Structural Equation Modelling (PLS-SEM) and Multi-Group Analysis (MGA). The results showed that credit attitudes and materialism had a significantly positive effect and found a mediating role for materialism. However, there is no moderating effect of religiosity and several other demographic factors on the model. The findings of this study are expected to help the general public understand the use of BNPL and assist authorities in developing measures to limit BNPL misuse.