Understanding Consumers' Perception Towards Buy Now Pay Later (BNPL) Services: Evidence from Ahmedabad, India

Buy Now Pay Later, BNPL, Financial Technology, Consumer Behaviour, Digital Payments, Financial Flexibility, FinTech, India

The rapid advancement of financial technology (FinTech) has fundamentally transformed payment ecosystems across the world, giving rise to innovative credit solutions such as Buy Now Pay Later (BNPL). By allowing consumers to purchase products immediately while deferring payments through short-term instalments, BNPL has emerged as a popular alternative to traditional credit cards, particularly among digitally active consumers. Although the adoption of BNPL services has accelerated significantly in India following the COVID-19 pandemic, empirical evidence examining consumers' perception of BNPL in emerging markets remains limited. This study investigates consumers' awareness, adoption behaviour, influencing factors, and perceptions towards BNPL services in Ahmedabad, India. A descriptive research design was employed using primary data collected from 197 BNPL users through a structured questionnaire. Convenience sampling was adopted for data collection, while Statistical Package for the Social Sciences (SPSS) and Microsoft Excel were used for descriptive statistics, cross-tabulation, chi-square analysis, and one-sample t-tests. The findings reveal that payment flexibility, interest-free instalments, and short-term financial convenience are the principal motivations influencing BNPL adoption. Social media, financial technology companies, and word-of-mouth communication emerged as the dominant awareness channels. The study further indicates that consumers demonstrate strong confidence in BNPL services as an effective financial management tool while expressing concerns regarding data security and repayment obligations. Hypothesis testing confirms that age does not significantly influence preferences regarding financial flexibility features offered by BNPL services. The study contributes to the growing literature on FinTech adoption by providing empirical evidence from an Indian metropolitan market and offers practical implications for fintech companies, retailers, financial institutions, and policymakers. The findings suggest that improving transparency, strengthening cybersecurity measures, and enhancing consumer financial literacy are essential for sustaining responsible BNPL adoption in emerging economies.