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Buy-now, pay-later (BNPL) services can put consumers into a debt trap by encouraging consumers to buy things they cannot afford, leading to a culture of materialism and consumerism. Therefore, this research aims to investigate how materialism can influence BNPL use and impulsive and compulsive buying. Additionally, the authors examine if BNPL use and impulsive buying mediate between materialism and compulsive buying.

Data from 556 participants were collected through a structured questionnaire via an online survey. Structural equation modeling (SEM) using SMART PLS 4 was employed to analyze the relationship between variables and to test the proposed hypotheses.

Materialism impact BNPL use and increases the inclination for impulse buying, precipitating compulsive buying behavior. However, BNPL use does not directly influence compulsive buying. The mediating relationship was identified, where BNPL use, and impulsive buying mediate the relationship between materialism and compulsive buying.

BNPL use alone does not inevitably lead to compulsive buying. The only way BNPL use could lead to compulsive buying is through impulsive buying. Therefore, BNPL service providers need to foster responsible buying habits due to the rise in impulsive buying, which, if not controlled, could lead to a debt trap resulting from compulsive buying.

This study contributes to the limited BNPL literature because there is speculation, but the scarcity of empirical evidence to substantiate, how materialism influences BNPL use and increases the inclination for impulse buying, precipitating compulsive buying behavior.