THE EFFECT OF BUY NOW, PAY LATER FINTECH ON TRADITIONAL FINANCIAL SERVICES AND CONSUMER BEHAVIOR IN SAUDI ARABIA

Abstract

This research investigates the impacts of financial technology (Fintech) on traditionalfinancial services and the emergence of Buy Now Pay Later (BNPL) companies withinthe Kingdom of Saudi Arabia. Fintech signifies a paradigmatic shift in the financial land-scape, utilizing technology to transform banking, payment systems, investment strate-gies, and lending practices. The BNPL model, recognized for its disruptive nature, ena-bles consumers to divide purchases into interest-free installments, thereby reshapingglobal consumer spending patterns. Thisstudy concentrates specifically on the SaudiArabian context, where Fintech adoption is experiencing rapid growth. It scrutinizes thefactors that influence BNPL adoption behavior among Saudi consumers, addressing aresearch void in localized studies. A sample of 100 consumer participants responded toan online survey. The statistical analysis underscores the strength, significance, andcorrelation between financial elements and the factors crucial to the decision-makingprocess for BNPL adoption. The descriptive analysis of Independent Variables (IVs) en-compassing Performance Expectancy (PE), Effort Expectancy (EE), Social Influence (SI),and Facilitating Conditions (FC) has provided significant insights into the perceptions ofconsumers regarding the adoption of Buy Now Pay Later (BNPL) services. The analysishas revealed noteworthy patterns in the data. Performance Expectancy (PE) demon-strates moderate perceptions (Mean = 2.98), indicating a measured belief in the use-fulness 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 amongrespondents towards BNPL adoption,providing insights into the factors influencing theiradoption behaviors. The research findings contribute to academic comprehension, pro-vide insights for industry stakeholders, and inform the development of policies and reg-ulations within Saudi Arabia's dynamic Fintech ecosystem. Future studies may utilizelongitudinal studies, conduct cross-cultural comparisons, and explore technological in-tegration in exploring the BNPL consumer behavior studies