While the flexibility and convenience offered by "pay later" services have undoubtedly revolutionized the way we shop and transact, overindulgence in this trend has significant implications on their consumption patterns, saving behaviors and the overall financial stability of individuals and the financial system at large.

The lure of "pay later" services such as Buy Now, Pay Later (BNPL) platforms has reshaped the consumption habits of the younger generation. With the ability to make immediate purchases and defer payment to a later date, individuals are more inclined to indulge in impulse buying and overspending beyond their means. 

The convenience of instant gratification, coupled with the absence of upfront costs, entices individuals to make frivolous purchases, leading to a culture of consumerism and materialism. 

Based on data from the Financial Services Authority (OJK), the majority of BNPL service users, whether provided by banks or non-banks, are dominated by Gen Z with a market share of around 55 percent. Moreover, on an annual basis, the nominal growth and the number of pay later credit users continue to increase, both provided by banks and non-banks, with a percentage increase that rises almost 2-2.5 times. 

In terms of nominal figures, the scheme has experienced growth from 13.15 percent in April 2024 to 31.82 percent in April 2025. Additionally, the total number of users has grown from 10.76 percent in April 2024 to 25.88 percent in April 2025.

Moreover, the availability of installment plans and deferred payment options encourages individuals to purchase high-ticket items that they may not have been able to afford otherwise. This phenomenon not only distorts their perception of affordability but also contributes to the accumulation of debt and financial strain in the long run.