EURO 2024 Copenhagen
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2222. Unveiling the credit nature of Buy-Now-Pay-Later

Invited abstract in session TD-7: Behaviour and decision support, stream Behavioural OR.

Tuesday, 14:30-16:00
Room: 1019 (building: 202)

Authors (first author is the speaker)

1. Mee Chi SO
Southampton Business School, University of Southampton

Abstract

Consumers often see buy-now-pay-later (BNPL) as a convenient payment mechanism allowing them to spread the purchase cost over an interest-free period. Many consumers do not realise it is a form of credit and may result in late charges being incurred. This lack of understanding is one of the contributing factors that has led many BNPL users to overspend and accumulate debt. This project aims to transform our understanding of how BNPL impacts consumers’ spending behaviour and inform information provision practices so that consumers can make better informed decisions. A series of experiments will be conducted to evaluate how BNPL should be presented so that consumers are given appropriate and adequate information prior to instigating a contract. The results will inform financial regulators as they introduce regulation on BNPL offers, whilst helping protect consumers and ensure that BNPL is sustainable.

Keywords

Status: accepted

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