AN ANALYTICAL STUDY ON THE GROWTH OF BUY NOW PAY LATER (BNPL) SERVICES

The rapid evolution of financial technology has significantly transformed consumer credit systems, with Buy Now Pay Later (BNPL) services emerging as a prominent alternative to traditional credit mechanisms. This study examines the growth trajectory of BNPL services, focusing on their adoption patterns, underlying drivers, and financial implications. The research problem centers on understanding whether BNPL growth is driven by genuine financial inclusion or by unsustainable consumer borrowing behavior.

The primary objectives of the study are to evaluate the growth trend of BNPL services and to analyze the impact of technological and behavioral factors on their adoption. The study employs a quantitative research design using secondary data collected from financial reports, fintech databases, and market surveys. Statistical tools such as correlation and regression analysis are applied to identify relationships between variables such as user adoption, digital payment infrastructure, and consumer spending behavior.

The findings indicate a strong positive relationship between digital payment penetration and BNPL adoption, while also highlighting concerns regarding consumer indebtedness and regulatory gaps. The study contributes to the existing literature by providing a comprehensive analytical framework for understanding BNPL growth and its implications for financial stability, policymakers, and investors.