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Buy Now, Pay Later Loans, Social Norms, and Consumer Indebtedness.

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Title: Buy Now, Pay Later Loans, Social Norms, and Consumer Indebtedness.
Authors: Ackert, Lucy F. (AUTHOR), Khayati, Amine (AUTHOR), Kelani, Zeynep (AUTHOR)
Source: Journal of Behavioral Finance. Oct-Dec2025, Vol. 26 Issue 4, p558-569. 12p.
Subjects: Social norms, Young consumers, Product positioning, Financial literacy, Installment plan, Empirical research, Consumer credit, Payment
Abstract: The terms associated with new financial products, such as buy now, pay later (BNPL) loans, are often cloudy. Policymakers are concerned because these products are marketed to naïve consumers who may be in financial peril. While financial illiteracy has received attention, it is also important to recognize that consumers are impacted by perceptions of the choices of those in their social network. We elicit empirical and normative expectations in an incentivized experiment to measure what young people think others will do and their beliefs of the beliefs of others. Our experimental participants are more likely to purchase an item with a BNPL loan, as compared to a credit card loan, and the majority believes others see this as a good choice. We conclude that consumers are likely to increase indebtedness when offered a payment scheme that is supported by a social norm. [ABSTRACT FROM AUTHOR]
Copyright of Journal of Behavioral Finance is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Psychology and Behavioral Sciences Collection
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  Data: Buy Now, Pay Later Loans, Social Norms, and Consumer Indebtedness.
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  Data: <searchLink fieldCode="AR" term="%22Ackert%2C+Lucy+F%2E%22">Ackert, Lucy F.</searchLink> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Khayati%2C+Amine%22">Khayati, Amine</searchLink> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Kelani%2C+Zeynep%22">Kelani, Zeynep</searchLink> (AUTHOR)
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  Data: <searchLink fieldCode="JN" term="%22Journal+of+Behavioral+Finance%22">Journal of Behavioral Finance</searchLink>. Oct-Dec2025, Vol. 26 Issue 4, p558-569. 12p.
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  Data: <searchLink fieldCode="DE" term="%22Social+norms%22">Social norms</searchLink><br /><searchLink fieldCode="DE" term="%22Young+consumers%22">Young consumers</searchLink><br /><searchLink fieldCode="DE" term="%22Product+positioning%22">Product positioning</searchLink><br /><searchLink fieldCode="DE" term="%22Financial+literacy%22">Financial literacy</searchLink><br /><searchLink fieldCode="DE" term="%22Installment+plan%22">Installment plan</searchLink><br /><searchLink fieldCode="DE" term="%22Empirical+research%22">Empirical research</searchLink><br /><searchLink fieldCode="DE" term="%22Consumer+credit%22">Consumer credit</searchLink><br /><searchLink fieldCode="DE" term="%22Payment%22">Payment</searchLink>
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: The terms associated with new financial products, such as buy now, pay later (BNPL) loans, are often cloudy. Policymakers are concerned because these products are marketed to naïve consumers who may be in financial peril. While financial illiteracy has received attention, it is also important to recognize that consumers are impacted by perceptions of the choices of those in their social network. We elicit empirical and normative expectations in an incentivized experiment to measure what young people think others will do and their beliefs of the beliefs of others. Our experimental participants are more likely to purchase an item with a BNPL loan, as compared to a credit card loan, and the majority believes others see this as a good choice. We conclude that consumers are likely to increase indebtedness when offered a payment scheme that is supported by a social norm. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of Journal of Behavioral Finance is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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RecordInfo BibRecord:
  BibEntity:
    Identifiers:
      – Type: doi
        Value: 10.1080/15427560.2024.2385898
    Languages:
      – Code: eng
        Text: English
    PhysicalDescription:
      Pagination:
        PageCount: 12
        StartPage: 558
    Subjects:
      – SubjectFull: Social norms
        Type: general
      – SubjectFull: Young consumers
        Type: general
      – SubjectFull: Product positioning
        Type: general
      – SubjectFull: Financial literacy
        Type: general
      – SubjectFull: Installment plan
        Type: general
      – SubjectFull: Empirical research
        Type: general
      – SubjectFull: Consumer credit
        Type: general
      – SubjectFull: Payment
        Type: general
    Titles:
      – TitleFull: Buy Now, Pay Later Loans, Social Norms, and Consumer Indebtedness.
        Type: main
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            NameFull: Ackert, Lucy F.
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            NameFull: Khayati, Amine
      – PersonEntity:
          Name:
            NameFull: Kelani, Zeynep
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          Dates:
            – D: 01
              M: 10
              Text: Oct-Dec2025
              Type: published
              Y: 2025
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              Value: 26
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              Value: 4
          Titles:
            – TitleFull: Journal of Behavioral Finance
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