Citation

Lim, Ying San and Ng, Tuan Hock and Lee, Mou Shian (2026) Social Influence and Performance Expectancy as Drivers of Buy Now Pay Later Adoption: Evidence from Generation Z Consumers in Malaysia. Journal of Logistics, Informatics and Service Science, 13 (1). pp. 20-32. ISSN 2409-2665

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Abstract

Buy Now Pay Later (BNPL) services have rapidly penetrated Southeast Asian markets, yet limited research examines adoption drivers among Generation Z consumers who may exhibit distinct financial behaviors. This study investigates factors influencing BNPL adoption intention among Malaysian Generation Z consumers using an integrated TAM UTAUT framework. We examined five determinants: social influence, performance expectancy, consumer perception factors, perceived ease of use, and security concerns. Data from 143 Generation Z BNPL users were analyzed using multiple regression analysis. Results reveal that performance expectancy (β=0.57, p<0.001) and social influence (β=0.17, p=0.013) significantly predict adoption intention, explaining 78% of variance. Surprisingly, consumer perception factors, perceived ease of use, and security showed no significant effects, challenging conventional fintech adoption theories. The dominance of platform-embedded BNPL services (71.3% using Shopee or Grab) over standalone providers suggests that platform trust may substitute for traditional security concerns among Generation Z. These findings indicate that BNPL adoption is driven primarily by functional benefits and peer influence rather than individual traits or technical considerations. For practitioners, results suggest leveraging social proof and emphasizing practical benefits in marketing strategies. For policymakers, the strong social influence effect highlights the need for peer-based financial education to promote responsible BNPL usage. This study contributes empirical evidence on Generation Z's unique fintech adoption patterns in emerging markets and suggests that traditional technology adoption models require modification for understanding BNPL services.

Item Type:	Article
Uncontrolled Keywords:	Intention to use, social influence, performance expectancy, buy now pay later
Subjects:	H Social Sciences > HG Finance
Divisions:	Faculty of Business (FOB)
Depositing User:	Ms Suzilawati Abu Samah
Date Deposited:	11 Feb 2026 02:00
Last Modified:	11 Feb 2026 02:08
URII:	http://shdl.mmu.edu.my/id/eprint/15344

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