Pay Later Usage Behavior of Generation Z: Testing the Influence of Financial Literacy, Financial Self-Efficacy, and Financial Well-Being
Keywords:
financial literacy, financial self efficacy, financial well being, pay later, generation z
Abstract
This study aims to determine the effect of financial literacy, financial self-efficacy, and financial well-being on Generation Z's use of pay later services. This research conducted using a quantitative approach through an electronic questionnaire using Google Forms, targeting Generation Z from major cities on the island of Java. The testing conducted using Structural Equation Modeling (SEM) analysis with the Partial Least Square SEM (PLS-SEM) method using the SmartPLS application. The results of this research indicate that financial literacy has a negative effect on the use of pay later, while financial self-efficacy and financial well-being do not have an effect on the use of pay later.
References
Aisjah, S. (2024). Intention to use buy-now-pay-later payment system among university students: a combination of financial parenting, financial self-efficacy, and social media intensity. Cogent Social Sciences, 10(1), 1–16. https://doi.org/10.1080/23311886.2024.2306705
Ashby, R., Sharifi, S., Yao, J., & Ang, L. (2025). The influence of the buy-now-pay-later payment mode on consumer spending decisions. Journal of Retailing, 101(1), 103–119. https://doi.org/10.1016/j.jretai.2025.01.003
Budiman, C., Tanjaya, K., Zulkarnain, A., & Rosman, D. (2023). The effect of paylater on purchase decision and continuance intention in generation Z at GoFood application. E3S Web of Conferences, 426, 01084. https://doi.org/10.1051/e3sconf/202342601084
Constansje, B., Kurniasari, F., & Abubakar, A. (2023). THE EFFECTS OF FINANCIAL LITERACY , SELF-EFFICACY , AND FINANCIAL STRESS ON RISKY CREDIT BEHAVIOR OF GENERATION Z : EVIDENCE FROM PAY LATER USERS Brithania Constansje Introduction Digital transformation has become an important aspect of daily life , and a. 11(1), 180–210.
Filotto, U., Salerno, D., Sampagnaro, G., & Stella, G. P. (2024). Riding the wave of change: Buy now, pay later as a disruptive threat to payment cards in the global market. Research in International Business and Finance, 72, 102499. https://doi.org/10.1016/j.ribaf.2024.102499
Khawar, S., & Sarwar, A. (2021). Financial literacy and financial behavior with the mediating effect of family financial socialization in the financial institutions of Lahore, Pakistan. Future Business Journal, 7(1), 27. https://doi.org/10.1186/s43093-021-00064-x
Kumar, A., Salo, J., & Bezawada, R. (2024). The effects of buy now, pay later (BNPL) on customers’ online purchase behavior. Journal of Retailing, 100(4), 602–617. https://doi.org/10.1016/j.jretai.2024.09.004
Kusairi, S., Ahmad, N., & Kae, T. J. (2020). The Linkages of Financial Self-Efficacy and Financial Decision Behaviour: Learning from Female Lecturers in East Coast Malaysia. International Journal of Organizational Leadership, 9, 273–287. https://doi.org/10.33844/ijol.2020.60511
Liu, L., & Zhang, H. (2021). Financial literacy, self-efficacy and risky credit behavior among college students: Evidence from online consumer credit. Journal of Behavioral and Experimental Finance, 32, 100569. https://doi.org/10.1016/j.jbef.2021.100569
Mappadang, A., Hendryadi, H., Yoewono, H., Elizabeth, E., & Fitriawati, R. (2025). The God locus of financial control, impulsive use of buy-now-pay-later service, and subjective financial well-being among accounting students: the role of social comparison tendencies. Cogent Social Sciences, 11(1). https://doi.org/10.1080/23311886.2025.2474192
Muhamad, N. (2023). Milenial dan Gen Z Mendominasi Pengguna Paylater di Indonesia. Databoks Katadata. https://databoks.katadata.co.id/media/statistik/66b5d6e18dff3/milenial-dan-gen-z-mendominasi-pengguna-paylater-di-indonesia
Otortias Jasa Keuangan. (2025, May 2). Siaran Pers Bersama: Indeks Literasi dan Inklusi Keuangan Masyarakat Meningkat, OJK dan BPS Umumkan Hasil Survei Nasional Literasi Dan Inklusi Keuangan (SNLIK) Tahun 2025. OJK. https://ojk.go.id/id/berita-dan-kegiatan/siaran-pers/Pages/OJK-dan-BPS-Umumkan-Hasil-Survei-Nasional-Literasi-Dan-Inklusi-Keuangan-SNLIK-Tahun-2025.aspx
Pham, T. Van, Nguyen, T. P. T., Vu, C. M., Nguyen, H. T., Nguyen, L. K., & Nguyen, A. D. P. (2024). Factors affecting the intention to buy now - pay later for online payment of generation Z. Journal of Development and Integration, 1(78), 10–18. https://doi.org/10.61602/jdi.2024.78.02
Powell, R., Do, A., Gengatharen, D., Yong, J., & Gengatharen, R. (2023). The relationship between responsible financial behaviours and financial wellbeing: The case of buy‐now‐pay‐later. Accounting & Finance, 63(4), 4431–4451. https://doi.org/10.1111/acfi.13100
Simiyu, N. N., Kumar, S. S., & Kivuyo, R. B. (2025). Exploring the influence of financial self-efficacy and facilitating conditions on intentions and actual borrowing in buy now, pay later services. International Journal of Bank Marketing, 43(8), 1705–1731. https://doi.org/10.1108/IJBM-09-2024-0527
Ashby, R., Sharifi, S., Yao, J., & Ang, L. (2025). The influence of the buy-now-pay-later payment mode on consumer spending decisions. Journal of Retailing, 101(1), 103–119. https://doi.org/10.1016/j.jretai.2025.01.003
Budiman, C., Tanjaya, K., Zulkarnain, A., & Rosman, D. (2023). The effect of paylater on purchase decision and continuance intention in generation Z at GoFood application. E3S Web of Conferences, 426, 01084. https://doi.org/10.1051/e3sconf/202342601084
Constansje, B., Kurniasari, F., & Abubakar, A. (2023). THE EFFECTS OF FINANCIAL LITERACY , SELF-EFFICACY , AND FINANCIAL STRESS ON RISKY CREDIT BEHAVIOR OF GENERATION Z : EVIDENCE FROM PAY LATER USERS Brithania Constansje Introduction Digital transformation has become an important aspect of daily life , and a. 11(1), 180–210.
Filotto, U., Salerno, D., Sampagnaro, G., & Stella, G. P. (2024). Riding the wave of change: Buy now, pay later as a disruptive threat to payment cards in the global market. Research in International Business and Finance, 72, 102499. https://doi.org/10.1016/j.ribaf.2024.102499
Khawar, S., & Sarwar, A. (2021). Financial literacy and financial behavior with the mediating effect of family financial socialization in the financial institutions of Lahore, Pakistan. Future Business Journal, 7(1), 27. https://doi.org/10.1186/s43093-021-00064-x
Kumar, A., Salo, J., & Bezawada, R. (2024). The effects of buy now, pay later (BNPL) on customers’ online purchase behavior. Journal of Retailing, 100(4), 602–617. https://doi.org/10.1016/j.jretai.2024.09.004
Kusairi, S., Ahmad, N., & Kae, T. J. (2020). The Linkages of Financial Self-Efficacy and Financial Decision Behaviour: Learning from Female Lecturers in East Coast Malaysia. International Journal of Organizational Leadership, 9, 273–287. https://doi.org/10.33844/ijol.2020.60511
Liu, L., & Zhang, H. (2021). Financial literacy, self-efficacy and risky credit behavior among college students: Evidence from online consumer credit. Journal of Behavioral and Experimental Finance, 32, 100569. https://doi.org/10.1016/j.jbef.2021.100569
Mappadang, A., Hendryadi, H., Yoewono, H., Elizabeth, E., & Fitriawati, R. (2025). The God locus of financial control, impulsive use of buy-now-pay-later service, and subjective financial well-being among accounting students: the role of social comparison tendencies. Cogent Social Sciences, 11(1). https://doi.org/10.1080/23311886.2025.2474192
Muhamad, N. (2023). Milenial dan Gen Z Mendominasi Pengguna Paylater di Indonesia. Databoks Katadata. https://databoks.katadata.co.id/media/statistik/66b5d6e18dff3/milenial-dan-gen-z-mendominasi-pengguna-paylater-di-indonesia
Otortias Jasa Keuangan. (2025, May 2). Siaran Pers Bersama: Indeks Literasi dan Inklusi Keuangan Masyarakat Meningkat, OJK dan BPS Umumkan Hasil Survei Nasional Literasi Dan Inklusi Keuangan (SNLIK) Tahun 2025. OJK. https://ojk.go.id/id/berita-dan-kegiatan/siaran-pers/Pages/OJK-dan-BPS-Umumkan-Hasil-Survei-Nasional-Literasi-Dan-Inklusi-Keuangan-SNLIK-Tahun-2025.aspx
Pham, T. Van, Nguyen, T. P. T., Vu, C. M., Nguyen, H. T., Nguyen, L. K., & Nguyen, A. D. P. (2024). Factors affecting the intention to buy now - pay later for online payment of generation Z. Journal of Development and Integration, 1(78), 10–18. https://doi.org/10.61602/jdi.2024.78.02
Powell, R., Do, A., Gengatharen, D., Yong, J., & Gengatharen, R. (2023). The relationship between responsible financial behaviours and financial wellbeing: The case of buy‐now‐pay‐later. Accounting & Finance, 63(4), 4431–4451. https://doi.org/10.1111/acfi.13100
Simiyu, N. N., Kumar, S. S., & Kivuyo, R. B. (2025). Exploring the influence of financial self-efficacy and facilitating conditions on intentions and actual borrowing in buy now, pay later services. International Journal of Bank Marketing, 43(8), 1705–1731. https://doi.org/10.1108/IJBM-09-2024-0527
Published
2026-03-27
How to Cite
Harum Silvia Kusuma Putri, & Zaenal Arifin. (2026). Pay Later Usage Behavior of Generation Z: Testing the Influence of Financial Literacy, Financial Self-Efficacy, and Financial Well-Being. International Journal of Economics, Business and Innovation Research, 5(02), 656-665. https://doi.org/10.63922/ijebir.v5i02.3112
.png)
Contact Person +6282139474255
Email : ijebir@citakonsultindo.or.id / editor.ijebir@gmail.com
