Buy Now, Stress Later? The Reality Behind Paylater Use

Mohammad Nur Rianto Al Arif
(Professor at UIN Syarif Hidayatullah,
Secretary General of the Indonesian Lecturers Association,
Board Member of IAEI,
Board Member of ISEI Jakarta Chapter)

In the digital era, convenience often comes with consequences that are not immediately felt. One of the most striking financial innovations in recent years is the Buy Now Pay Later (BNPL) service, commonly known as "pay later."

With a single click, someone can buy goods today and pay later. No credit card, no long process, and often without the psychological feeling of being in debt.

For young people, especially Generation Z and Millennials, BNPL appears as an instant solution in a fast-paced lifestyle.

However, behind that convenience lies a major issue: the growing risk of a digital debt trap.

This phenomenon is not just a consumption trend but a reflection of changes in economic structure, financial behavior, and even the future direction of Indonesia’s productive generation.

Data shows that BNPL growth in Indonesia has been extremely rapid in recent years.

By mid-2025, total public debt through pay later schemes had reached around Rp31.55 trillion. Various reports estimate that this figure continues to rise alongside service expansion and digital penetration.

In terms of users, the number of BNPL borrowers has surged significantly. By the end of 2025, around 24.52 million people were using these services, an increase of nearly 50 percent compared to the previous year.

This is not just a statistic—it shows that BNPL has become part of everyday life.

More interestingly, the majority of users come from young people. Millennials and Gen Z are the main drivers of BNPL growth in Indonesia. In some data, nearly 40 percent of users come from Gen Z.

In other words, digital debt is no longer a marginal issue—it has become part of youth economic culture. Several factors explain why young people dominate BNPL usage.

First, ease of access. Unlike conventional credit, BNPL offers a fast, even instant process.

No collateral, no complicated verification, often just basic data. This makes BNPL feel “light” and not intimidating.

Second, limited financial literacy. Many young people understand investment trends but not fully debt management. BNPL is often seen as a consumption tool, not a financial obligation.

Third, social pressure and digital lifestyle. Social media creates lifestyle standards—from fashion and gadgets to experiences.

BNPL becomes a bridge to meet those expectations, even when financial capacity is limited.

Fourth, economic uncertainty. With job instability and rising living costs, BNPL becomes a short-term solution to meet consumption needs.

In this situation, BNPL is no longer just an option—it becomes a “survival tool” for some young people.

The main issue with BNPL is not its existence, but how it is used. When used wisely, it can help manage cash flow. However, in practice, BNPL often encourages impulsive consumption.

The concept of “buy now, pay later” blurs the psychological sense of spending money. Transactions feel easy because payment is delayed.

As a result, people can keep buying without realizing their debt is accumulating. This is worsened by the fact that many users have more than one digital credit facility.

In some cases, individuals use multiple pay later platforms at once, creating obligations that are hard to control.

It is no surprise that non-performing loans are starting to rise. The BNPL default rate has reached around 4 percent, a concerning level for such a fast-growing product.

BNPL creates what can be called an illusion of prosperity. Someone may appear consumptive, active, and financially “stable” in lifestyle, while actually accumulating debt.

In the short term, this may not be noticeable. But in the long term, debt accumulation can erode financial capacity and limit economic mobility.

More broadly, this can also create artificial consumption. Demand driven by debt does not always reflect real purchasing power. If unmanaged, this can distort the economy.

At the macro level, debt-driven consumption can boost short-term growth.

But in the long run, digital debt carries systemic risks, especially if defaults increase.

It must be acknowledged that BNPL also has positive aspects. It has expanded access to financing for people previously excluded from banking services. In this sense, BNPL contributes to financial inclusion.

However, inclusion without literacy is a risk. The rapid growth of BNPL shows a shift in consumption financing—from income-based to digital credit-based.

This is a fundamental change. Without proper regulation and strong education, BNPL could become a source of financial instability, both individually and systemically.

Digital debt affects not only the economy but also social and psychological aspects.

For many young people, debt becomes an invisible burden. There are no collectors coming to the house, no direct pressure like conventional loans.

But precisely because it is “invisible,” it is often ignored.

In the long term, this can lead to financial stress, anxiety, and even social conflict—especially if it starts affecting basic needs or family relationships.

This phenomenon can also reinforce inequality.

Young people trapped in consumptive debt will struggle to build productive assets, such as education, investment, or home ownership.

Given this situation, the role of regulators becomes crucial. The Financial Services Authority (OJK) has monitored BNPL growth, but future challenges are more complex.

First, stronger regulations are needed regarding credit limits, interest transparency, and collection mechanisms.

Second, credit data integration is essential to prevent over-leverage. Without it, individuals can access multiple BNPL services without proper control.

Third, financial literacy must become a national priority. Education on debt, risk, and financial management must start early.

Amid these challenges, young people should not only be seen as victims. They must also be part of the solution.

First, by increasing financial awareness—understanding that every BNPL transaction is debt.

Second, by changing consumption patterns—from consumptive to productive, from impulsive to planned.

Third, by using technology wisely. Digitalization should improve welfare, not harm it.

BNPL is a double-edged sword.

On one side, it expands access, boosts consumption, and accelerates financial inclusion. On the other side, it brings risks of debt, overconsumption, and financial instability.

For young people, the choice is theirs: will BNPL be a tool of empowerment or a trap that limits their future?

This is not just a financial issue but a generational one. If not handled seriously, today’s digital debt could become a structural burden in the future.

This article was published in KOMPAS on Thursday, March 26, 2026.