AMTP Proceedings 2026

Document Type

Conference Proceeding

Publication Date

Spring 2026

Abstract

Drawing on mental accounting and dual-process frameworks, this study investigates the relationship between Buy Now Pay Later (BNPL) usage, consumer financial well-being and life satisfaction.  Using survey data from a national sample of over 5,000 American consumers, we employ structural equation modeling to analyze the associations between BNPL usage and social media buy-now-button usage, splurge purchasing, luxury brand purchasing, debt accumulation, financial security, and consumer life satisfaction.

Our results indicate that frequent BNPL usage is a significant predictor of increased social media-driven purchases and luxury consumption, as well as higher levels of revolving credit card debt. These behaviors are associated with lower financial security and life satisfaction. These effects are notably stronger for low-income and below-poverty-line consumers, raising concerns about the long-term consequences of this fintech innovation. The findings of the study suggest that BNPL may facilitate a “liquidity flypaper” effect, augmenting, rather than replacing existing debt. The implications of this study include the establishment of stronger regulatory guardrails and behavioral design interventions to prevent disproportionate harms to vulnerable consumers.

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