The Usage and Impact of Buy Now, Pay Later (BNPL) Services: A Conceptual Analysis
Author : Nitin Jayshankar Tiwari
Abstract :
The rapid growth of Buy Now, Pay Later (BNPL) services shows a major change in how people borrow money and make digital payments. Unlike traditional credit cards or loans, BNPL allows customers to buy a product immediately and pay for it later in smaller, scheduled installments. Many of these services are interest-free as long as payments are made on time, which makes them attractive and easy to manage for shoppers. Their popularity has grown quickly because they are built directly into online shopping platforms and supported by the wider rise of financial technology (fintech) solutions.
This paper explores BNPL services in detail. It begins with their background and history, explaining how they developed and became a part of modern retail finance. It also describes the technology that supports BNPL, such as digital payment systems and mobile applications, which make transactions smooth and convenient. In addition, the paper looks at the social and economic reasons behind their growing use, such as young consumers seeking flexible payment options and businesses aiming to boost sales.
The study further examines the effects of BNPL on different groups. For consumers, BNPL offers flexibility but also risks of overspending and debt. For merchants, it can increase sales and customer loyalty. For financial institutions, it creates both new opportunities and competition with traditional credit products. At the same time, BNPL raises important regulatory and ethical questions, such as whether consumers fully understand the risks and how governments should monitor these services to protect users.
Keywords :
Buy Now Pay Later (BNPL), Digital payments, Consumer borrowing, Instalment payments, Interest-free services.
