The impact of “Buy Now Pay Later” (BNPL) services on the financial wellbeing of young Australian adults: An ethical perspective

Abstract

This is a theoretical inquiry into ‘Buy Now Pay Later’ (BNPL) service operations in the on-line space targeting young Australians. From an ethical perspective, the study argues that BNPL services may lead to impulse buying that may in turn affect the financial wellbeing of young adults in Australia. Thus, the conceptual paper explores the phenomenon from a theoretical framework, informed by Integrative Social Contracts Theory (ISCT). The paper identifies the relationships between BNPL usage and impulse buying due to social media proneness among young Australian adults. The review of literature shows that social media proneness has an impact on impule buying. BNPL services heavily operate in the on-line space. The paper postulates three propositions explaining the relationships between BNPL usage and impulse buying due to social media proneness among young Australian adults. The paper is organised as a conceptual investigation. Future research is needed to empirically validate the propositions.