Exploring the influence of financial self-efficacy and facilitating conditions on intentions and actual borrowing in buy now, pay later services

Purpose This study examines the influence of financial self-efficacy (FSE) and facilitating conditions (FC), along with other variables, on the use of the Buy Now, Pay Later (BNPL) credit services. The focus is on understanding how these factors, including perceived usefulness (PU) and social influence (SI), influence borrower intentions (BI) and actual borrowing usage (USE) within the BNPL domain. Design/methodology/approach A quantitative research approach was employed, using purposive sampling to gather data from 388 valid participants across India. The data were collected through an online survey, and the analysis was performed using Smart PLS 4 and SPSS Hayes PROCESS Macro. Findings The results reveal significant relationships between PU, SI, FC, and FSE on BI in the context of BNPL credit services. FSE has a significant positive influence on BI and partially mediates the relationship between FC and BI. On the other hand, FC had the least impact on BI, but it significantly influences FSE and slightly moderates the relationship between BI and USE. In addition, slight variations in these relationships were observed across different age and gender groups. Originality/value This study advances BNPL research by identifying a nonlinear threshold effect of FC on usage, challenging the assumption of a linear FC to actual behaviour relationship. It introduces FSE as a mediator between FC and BI emphasizing the importance of confidence in financial decision-making. In addition, this study redefines BNPL as a short-term credit service rather than merely a payment tool, highlighting its financial inclusion and regulatory implications.