Abstract:
1. Introduction
Due to the expansion of online shopping among consumers, digital
payment methods have become essential. The buy-now, pay-later (BNPL)
option is also a digital transaction mechanism that is getting significant
interest worldwide. However, the usage percentage of BNPL is very low
when it is considered in Sri Lanka. Thus, this study aims to investigate the
factors influencing customers' online clothing behavioral intention to BNPL
among millennials in the Western province of Sri Lanka.
2. Research Methodology
The Unified Theory of Acceptance and Use of Technology 2 framework and
the Extended Technology Acceptance Model provided the theoretical
foundation for this study. Through a deductive approach, and quantitative
survey research design, data was collected from 384 millennials who have
an understanding of BNPL in online clothing purchasing in the Western
province of Sri Lanka. Multiple regression analysis was performed in the
SPSS 25 version to examine information gathered via a self-administered
structured questionnaire with purposive sampling.
3. Findings and Discussion
The findings indicate that perceived benefits, performance expectancy,
effort expectancy, social influence, and habit positively impact customers'
online clothing behavioral intention to BNPL. Perceived risk negatively
impacts it. Furthermore, facilitating conditions have no impact, while the
most impactful factor is performance expectancy.
4. Conclusion and Implications
The study's findings suggest that emphasizing performance expectancy,
perceived benefits, and social influence can enhance BNPL adoption among
millennials. By highlighting BNPL's convenience and security, businesses
can boost customer trust, increase purchasing power, and improve average
order values, ultimately driving higher sales for e-commerce retailers. Most
of the previous studies used UTAUT2 to BNPL but this study adds
perceived risk & benefits for theoretical contribution
