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.
Keywords: Ethics, social media proneness, impulse/impulsive buying, young adults, BNPL