Does the adoption of buy now, pay later (BNPL) enhance the financial well-being of emerging adults through the mediation of materialism and financial behaviour?

Purpose This study explores the relationship between buy now, pay later (BNPL) services and emerging adults' financial well-being (FWB), with a specific focus on the mediating roles of materialism and financial behaviour. Design/methodology/approach Data from 403 emerging adults were collected, applying the purposive sampling method. Using the data, the direct and mediated effects are examined using the structural equation modelling (SEM). Findings The results of the study reveal that BNPL use does not directly influence the FWB of emerging adults. Instead, materialism and financial behaviour fully mediate this relationship, highlighting their roles in shaping the FWB of emerging adults. Research limitations/implications The study contributes substantially to the existing literature by underscoring the pivotal roles of materialism and financial behaviour in elucidating the impact of BNPL on the FWB of emerging adults. Practical implications The study provides actionable insights for marketers to tailor BNPL services and policies to this demographic and extend BNPL services to financially vulnerable individuals, potentially mitigating the debt trap associated with high-interest financial sources. Originality/value Despite the widespread acceptance of BNPL among emerging adults, there is a notable gap in research examining its impact on FWB. Therefore, this research aims to address this gap directly and indirectly through mediators.