The Effect of Buy Now, Pay Later Fintech on Traditional Financial Services and Consumer Behavior in Saudi Arabia

This research investigates the impacts of financial technology (Fintech) on traditional financial services and the emergence of Buy Now Pay Later (BNPL) companies within the Kingdom of Saudi Arabia. Fintech signifies a paradigmatic shift in the financial landscape, utilizing technology to transform banking, payment systems, investment strategies, and lending practices. The BNPL model, recognized for its disruptive nature, enables consumers to divide purchases into interest-free installments, thereby reshaping global consumer spending patterns. This study concentrates specifically on the Saudi Arabian context, where Fintech adoption is experiencing rapid growth. It scrutinizes the factors that influence BNPL adoption behavior among Saudi consumers, addressing a research void in localized studies. A sample of 100 consumer participants responded to an online survey. The statistical analysis underscores the strength, significance, and correlation between financial elements and the factors crucial to the decision-making process for BNPL adoption. The descriptive analysis of Independent Variables (IVs) encompassing Performance Expectancy (PE), Effort Expectancy (EE), Social Influence (SI), and Facilitating Conditions (FC) has provided significant insights into the perceptions of consumers regarding the adoption of Buy Now Pay Later (BNPL) services. The analysis has revealed noteworthy patterns in the data. Performance Expectancy (PE) demonstrates moderate perceptions (Mean = 2.98), indicating a measured belief in the usefulness of BNPL. Furthermore, Facilitating Conditions (FC) registered moderate scores (Mean = 3.04), underscoring the significance of favorable external factors. Collectively, these findings depict a moderate inclination and a generally positive outlook among respondents towards BNPL adoption, providing insights into the factors influencing their adoption behaviors. The research findings contribute to academic comprehension, provide insights for industry stakeholders, and inform the development of policies and regulations within Saudi Arabia's dynamic Fintech ecosystem. Future studies may utilize longitudinal studies, conduct cross-cultural comparisons, and explore technological integration in exploring the BNPL consumer behavior studies.