Understanding the intricacies of risky indebtedness, impulse buying and perceived risk in buy-now-pay-later adoption

Purpose This study aims to establish that the relationship between the risky indebtedness behavior (RIB) of consumers and their attitude toward adopting buy-now-pay-later (BNPL) is not immediate but is mediated through impulse buying. Moreover, it explores how perceived risk moderates the association between the attitude to adopt BNPL and its adoption intention. Design/methodology/approach This study used the existing theoretical and empirical evidence to propose a model and validated it using the data collected from 339 young shoppers in India. Analysis of data is conducted using partial least squares structural equation modeling. Findings The study results show that consumers’ RIB is not directly related to their attitude toward BNPL. However, impulse buying fully mediates this relationship, influencing the attitude toward BNPL. Impulse buying and attitude serially mediate the relationship between RIB and BNPL adoption intention. Further, in the context of BNPL, perceived risk strengthens the attitude-intention gap. Practical implications This study advises policymakers and BNPL providers to carefully assess users’ creditworthiness to prevent those already in debt from entering into a detrimental loop. Originality/value This study provides novel perspectives on consumer’s RIB and BNPL within the Indian context. The study additionally identifies the mediating influence of impulse buying and the moderating effect of perceived risk on BNPL adoption intention.