Buy-Now, Pay-Later (BNPL) Adoption Among UAE Consumers in the FinTech Ecosystem: A Data-Driven Consumer Analytics Study

Abstract

Buy-Now, Pay-Later (BNPL) services are a major FinTech innovation that is transforming consumer payment habits in the United Arab Emirates (UAE). However, there is limited empirical evidence on continuance intention in the Gulf Cooperation Council (GCC), and little research has been conducted combining behavioral-adoption theory with system-quality evaluation. This study fills this gap by investigating the factors influencing BNPL continuance intention of UAE consumers through an integrated consumer-analytics approach. Using survey data from 409 respondents aged 18-54 years, this study integrates the Unified Theory of Acceptance and Use of Technology (UTAUT) and the DeLone and McLean Information Systems Success (ISS) model to examine the combined effect of behavioural perceptions and platform quality on satisfaction and continued use. The strategy was multi-tool: Structural equation modelling (SEM) was employed to test the hypothesised relationships, a J48 decision tree was used to identify the strongest predictors of continuance intention, and K-means clustering was used to segment users by behaviour. All nine hypothesised paths were significant (p < .001). Performance expectancy (β = 0.354) and facilitating conditions (β = 0.271) had the strongest influence on continuance intention, whereas information quality (β = 0.307) had the strongest influence on satisfaction. The decision tree reached an accuracy of 63.3% and used satisfaction as the first splitting variable. The clustering identified segments of responsible, balanced and risk-prone. The study provides data-driven and region-specific evidence to guide FinTech providers and regulators on promoting responsible BNPL use.