Buy Now and Pay Later in Emerging Markets: Exploring Why customers Adopt the Service

Abstract

Buy Now Pay Later (BNPL) services are expanding rapidly in emerging markets, yet limited research has examined the consumer factors shaping their adoption in Saudi Arabia. This study investigates the influence of trust, electronic word of mouth (eWOM), and attitude toward cash on delivery (COD) on consumers’ intention to adopt BNPL services, drawing on the Theory of Planned Behavior. Data were collected through an online questionnaire from 300 respondents, including both users and non-users of BNPL services. Exploratory and confirmatory factor analysis were used to assess the measurement model, and Structural Equation Modeling (SEM) was applied to test the proposed relationships among the latent constructs. The results show that trust and eWOM effects BNPL adoption positively, while attitude toward COD has a negative effect. The findings suggest that consumer trust and online recommendations shape BNPL adoption, whereas preference for COD reduce consumers’ willingness to use BNPL services. The study offers implications for FinTech providers, retailers, and regulators in emerging markets.