Spending Patterns and Financial Risks among ‘Buy Now, Pay Later’ (BNPL) Consumers

The widespread adoption of Buy Now, Pay Later (BNPL) services has significantly altered consumer payment behavior, particularly in developing digital economies such as the Philippines. This study investigates the spending patterns and perceived financial risks among BNPL users in Iloilo City, applying a survey-correlational design involving 214 respondents selected through convenience sampling. Using descriptive statistics, the findings revealed that BNPL consumers exhibit frequent purchasing behavior, a high tendency for unplanned spending, and a consistent prioritization of essential goods, while non-essential purchases were occasional. Notably, participants perceived high financial risk related to debt accumulation, moderate concern over late fees and penalties, and moderate financial instability, with variations across demographic categories such as age, civil status, education, and income. The results underscore that while BNPL platforms offer payment flexibility, they simultaneously pose financial vulnerability among young, digitally active, and budget-constrained consumers. The study recommends targeted financial education initiatives and the integration of behavior-sensitive controls in BNPL applications to mitigate debt-related risks. These findings contribute to the growing discourse on consumer finance in emerging economies and emphasize the need for policy interventions and platform accountability in shaping responsible digital credit use.