Determinants of Students’ Financial Behavior in Relation to Buy Now, Pay Later (BNPL) Usage: A Multiple Linear Regression Approach

Abstract

This research aims to explore the determinants of financial behavior of university students towards the Buy Now Pay Later (BNPL) service in Malaysia. The study focuses on five independent variables such as BNPL Usage, Financial Literacy, Lifestyle, Financial Attitude and Impulsive Buying Behavior. The research design used was quantitative cross-sectional research and the data collection method was an online questionnaire distributed to the undergraduate students who are familiar with BNPL services. The multiple linear regression (MLR) was used to analyze 163 valid responses. The assumptions of the regression were assessed to ensure the suitability of the analysis. The results indicated that there are significant relationships between Financial Literacy and Financial Attitude with Student Financial Behavior while no significant relationships were found between BNPL Usage, Lifestyle and Impulsive Buying Behavior. Financial Literacy was found to be the most important variable affecting Student Financial Behavior among the significant ones. The results indicate that enhancement of students' financial knowledge and fostering responsible financial attitudes are crucial in shaping the financial management when using BNPL services. The study offers valuable insights for universities, financial educators and BNPL service providers to design programs that can address responsible financial decision-making and improve financial well-being of university students.