Factors influencing the intentions of Gen Z in Vietnam to use buy now pay later on e-commerce platforms

Abstract

E-commerce platforms today have many different payment methods: from manual payment upon receipt of goods, payment via e-wallet, payment via linked bank account and currently e-commerce platforms Electronics has applied payment in the form of Buy Now Pay Later. Using the Buy Now Pay Later payment method in other countries is quite popular, but in Vietnam, this method is quite new and was launched a few years ago. Because it is still new, the number of people using this method is not yet popular. This study aims to evaluate the factors influencing the intention and usage behaviour of Buy Now, Pay Later payment services among Generation Z in Vietnam on e-commerce platforms. We conducted a survey based on an electronic questionnaire with 399 individuals from Generation Z in Vietnam. Using a structural equation model to analyse the research conceptual model, our results confirm that perceived usefulness and subjective norms significantly influence the intention and usage behaviour. Moreover, perceived usefulness mediates the relationship between perceived ease of use, subjective norms, and the intention to use the Buy Now, Pay Later payment method on e-commerce platforms. The results indicate that perceptions of risk and perceived ease of use do not impact the intention and usage behaviour of the Buy Now, Pay Later payment method. This suggests that Generation Z in Vietnam finds it easy to use and is not overly concerned about risks when using this payment method. Overall, our results show that the model of perceived risk, perceived usefulness, subjective norms, and perceived ease of use explains 63.8% of the variance in the intention to use the mobile payment system. Our study contributes to the technology acceptance model and highlights its effectiveness in explaining the intention and behaviour of applying the Buy Now, Pay Later payment method. This research also aims to provide e-commerce platform sellers and businesses offering Buy Now, Pay Later services with a comprehensive view to improve issues and better meet consumer needs for enhanced development