The Rise of Buy Now, Pay Later (BNPL): Financial Innovation or A New Avenue to Debt? A Systematic and Bibliometric Analysis

Abstract

This study aims to determine the dual role of Buy Now, Pay Later (BNPL) services as both a financial ally and a potential debt trap for users. The impact of BNPL on its users is comprehensively explored utilizing two methodological approaches, bibliometric analysis and systematic literature review (SLR). The bibliometric analysis, based on 108 papers extracted from Scopus, offers an overview of current trends and the state of research in this field. Meanwhile, the SLR, drawing on 19 papers from Scopus and ScienceDirect, delves deeper into the mechanisms and implications of BNPL tools. The study focuses on three major themes: BNPL as a financial ally, its potential to become a debt trap, and its predominant use among the younger generation. The findings aim to inform financial service providers, policymakers, and regulators about the benefits and risks associated with BNPL adoption, highlighting the need for balanced approaches to maximize its advantages while mitigating its pitfalls.