Risk aversion, anxiety, and self-control moderate the relationship with spending decision on buy now pay later (BNPL)

Heng, Jia Haw and Ko, Yi Bing and Lee, Wei Yin and Ong, Lincoln (2026) Risk aversion, anxiety, and self-control moderate the relationship with spending decision on buy now pay later (BNPL). Final Year Project, UTAR.

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Abstract

This research examines the relationship of financial literacy, demographic factors, and artificial intelligence on spending decisions of “Buy Now, Pay Later” (BNPL) in Malaysia. Utilizing Partial Least Squares Structural Equation Modelling (PLSSEM) with a sample of 600 respondents, this research also assesses the moderating role of psychological and behavioural factors including risk aversion, anxiety, and self-control in these relationships. The findings indicate that financial literacy and demographic factors do not significantly influence BNPL spending decisions, while artificial intelligence, anxiety, and self-control play a significant role in shaping customer spending decisions. In addition, risk aversion was found to moderate the relationship between financial literacy and spending decisions by weakening the relationship, whereas anxiety and self-control did not demonstrate significant moderating effects. The findings suggest that spending decisions are more strongly driven by psychological and technological factors than by financial literacy, underscoring the importance of incorporating responsible digital features such as self-control mechanisms within applications.

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