Promoting Consumers’ Adoption of Buy-Now-Pay-Later Feature while Using E-wallet Application: The Case of Gen Z in Vietnam

Abstract

The Buy-Now-Pay-Later (BNPL) feature has emerged as a popular payment innovation, offering users convenience and flexibility in their purchasing behavior. However, consumers' adoption of BNPL is often limited due to the trust issue usually associated with electronic payment. Previous studies have highlighted personal traits that affect consumers’ trust in adopting BNPL, such as risky indebtedness behaviour or privacy concern. Adopting the Stimulus-Organism-Response framework, this study investigates environmental factors influencing consumers’ attitudes and perceptions of privacy risks and trust. The main objective of this study is to identify these factors, which can be valuable to practitioners in promoting consumers' intention to adopt BNPL. The model was tested based on data collected from 430 young Vietnamese consumers. Data analysis is conducted using SmartPLS 4.0. The study's findings, which are significant in consumer behavior, confirm that behavior intention to use BNPL results from attitude, trust, and perceived risk, which were influenced by perceived ease of use and subjective norms. These findings provide actionable insights for practitioners in the field, equipping them with the knowledge to promote BNPL adoption effectively. One notable result of the research is that perceived ease of use has a negative impact on privacy risk. This finding implies that users’ primary apprehension in using the E-wallet BNPL feature pertains to the risk of losing their privacy. It strongly recommends that developers create a more user-friendly and transparent BNPL experience to alleviate privacy concerns and enhance user trust, thereby promoting the adoption of BNPL.