sustainability

Article
Sustainable Development through Fintech: Understanding the
Adoption of Buy Now Pay Later (BNPL) Applications by
Generation Z in Saudi Arabia
Salma S. Abed 1, * and Rotana S. Alkadi 2

1 Department of Management Information Systems, College of Business, King Abdulaziz University,

Rabigh 21589, Saudi Arabia
2 Finance Department, College of Business, King Abdulaziz University, Rabigh 21589, Saudi Arabia;
ralqadi@[Link]
* Correspondence: sabid@[Link]

Abstract: Sustainable development has emerged as a paramount priority globally, with the fintech
services playing a crucial role in achieving these goals. Although previous research has explored
consumer perceptions of novel fintech services, including Buy Now Pay Later (BNPL) applications,
there remains a knowledge gap regarding the factors influencing adoption among young consumers.
This study addresses this limitation by investigating the determinants of BNPL app usage among
Saudi Arabian Generation Z consumers, integrating the Unified Theory of Acceptance and Use of
Technology and DeLone and McLean’s Information Systems Success model. A survey of 380 BNPL
app consumers from Generation Z was conducted, and their responses were analyzed using structural
equation modeling. The findings reveal that performance expectancy, effort expectancy, and social
influence positively impact the intention to continue using BNPL apps. Furthermore, system quality,
service quality, and information quality exhibit significant correlations with satisfaction within the IS
Success model. The study’s outcomes are expected to inform app developers in designing effective
apps that engage digital-native consumers and provide policymakers with insights to enhance fintech
services. This research contributes significantly to the existing body of knowledge on fintech adoption,
intentions, and satisfaction.
Citation: Abed, S.S.; Alkadi, R.S.
Sustainable Development through
Keywords: fintech; consumers; adoption; generation Z; buy now pay later; sustainable development;
Fintech: Understanding the Adoption
Saudi Arabia
of Buy Now Pay Later (BNPL)
Applications by Generation Z in Saudi
Arabia. Sustainability 2024, 16, 6368.
[Link]
1. Introduction
Academic Editors: Ahmet Faruk Sustainable development has been a universal goal that has grabbed the attention of
Aysan and Erdinç Akyildirim
countries around the world. According to the United Nations (UN), fintech is one of most
Received: 8 June 2024 important industries for facilitating the achievement of Sustainable Development Goals
Revised: 16 July 2024 (SDGs) [1]. Hence, it is not surprising that in the 21st century, fintech payment services have
Accepted: 23 July 2024 experienced massive growth, offering consumers various opportunities and mechanisms to
Published: 25 July 2024 make payments for their purchases [2,3]. A recent fintech payment mechanism is the Buy
Now Pay Later (BNPL) technique. BNPL enables consumers to make immediate purchases
while deferring payment to a later specified timeframe [4]. The innovative BNPL fintech
service allows customers to apply for and receive approval for short-term loans at the
Copyright: © 2024 by the authors. point-of-sale using BNPL apps. Once approved, the customer can purchase goods and
Licensee MDPI, Basel, Switzerland. services and pay off the loan through a series of installments. Unlike credit cards, BNPL
This article is an open access article
does not require credit assessments, but determines eligibility using algorithms. BNPL has
distributed under the terms and
spending limits, structured installments, and interest-free transactions, with penalties only
conditions of the Creative Commons
for missed payments, making it a popular payment option worldwide [4,5].
Attribution (CC BY) license (https://
A recent report by Grand View Research documented that the BNPL market has
[Link]/licenses/by/
steadily grown since its inception in 2020. The global market size for BNPL reached
4.0/).

Sustainability 2024, 16, 6368. [Link] [Link]

Sustainability 2024, 16, 6368 2 of 19

USD 1.64 billion in 2022 and is projected to maintain a compound annual growth rate
(CAGR) of 26.1% between 2023 and 2030 [6]. The report also highlights that Saudi Arabia
is experiencing rapid growth in BNPL markets due to government support for fintech
services. Despite Saudi government efforts to support BNPL apps, it is crucial to recognize
consumer intention to continue using these apps and their satisfaction with them for
long-term success, especially among digital-native consumers like Generation Z.
Saudi Arabia has made significant strides in its fintech industry, with a focus on
achieving its Vision 2030 goals by prioritizing fintech as a crucial sector in its agenda.
Moreover, Saudi Arabia is considered to be a ‘youth’ country as about 36.7% of its total
population comprises individuals aged between 15 and 34 years old [7]. Studies suggest that
Generation Z (hereafter Gen Z), i.e., those born in the mid-1990s to mid-2000s [8], is rapidly
becoming a crucial demographic that businesses and financial institutions must cater to
when it comes to payment options. This generation, born and raised in a hyper-connected
and digitally driven world, prioritizes speed over accuracy and values immediate and
seamless payment experiences. As digital natives who are fluent in using technology, their
social and communication interactions lean toward a digital format as well [9]. Various
neologisms have emerged to describe Gen Z, including iGeneration, Net Generation, and
Generation Next, among others [10]. Hence, understanding their perceptions and the
factors that influence their continued use of these apps is essential for the country of
Saudi Arabia to achieve its 2030 SDGs. The Fintech Saudi Annual Report underscores the
importance of consumer demand in reaching the target of 525 fintech companies operating
in the Kingdom by 2030 [11]. As Gen Z prioritizes immediate and seamless payment
experiences, businesses and financial institutions need to tailor their fintech payment apps
to meet this demographic’s preferences and expectations.
While the use of BNPL payments will continue to increase significantly in Saudi Arabia,
there remains a considerable research gap in the study of Gen Z’s attitudes, behaviors,
and adoption patterns regarding BNPL apps. This is increasingly important as Gen Z
individuals are known for their high-consumption habits and quick-gratification lifestyle,
making pay-later mechanisms a viable option [12]. The lack of studies on Gen Z’s adoption
of and satisfaction with BNPL apps presents a challenge for businesses to meet their
demands and preferences, despite their established recognition as a critical consumer
demographic. Therefore, further research is needed to understand the intention to continue
using BNPL apps among Gen Z consumers and their satisfaction with these payment apps
in Saudi Arabia. This paper aims to fill this gap by examining the factors that influence
the continued intention of BNPL apps among Gen Z consumers in Saudi Arabia, and to
determine their overall satisfaction with these apps, using a novel merged model that
combines the UTAUT model and DeLone and McLean’s IS Success model.
This study aims to address a critical knowledge gap in the existing literature on
the adoption of BNPL apps among Gen Z consumers in Saudi Arabia. While previous
studies have explored the factors influencing technology adoption (e.g., [13,14]), these
investigations have often employed limited models and have been conducted in a narrow
range of countries. In contrast, this study seeks to contribute to the existing body of
knowledge by investigating the factors that influence Gen Z’s continued intention to use
BNPL apps in Saudi Arabia, using a novel merged model that combines the UTAUT model
and DeLone and McLean’s IS Success model. The lack of studies on BNPL use among
Gen Z in Saudi Arabia, where investments in fintech are great, and young-generation
population numbers are large, highlights the need for additional research. This research
therefore seeks to fill the gap in understanding the factors influencing Gen Z’s adoption of
BNPL apps in Saudi Arabia by providing insights into these factors, ultimately shedding
light on the factors driving BNPL adoption among Gen Z in Saudi Arabia.
The remainder of this paper is structured as follows: Section 2 presents a review of the
literature; Section 3 presents the theoretical bases and hypothesis development; Section 4
presents the research methodology; Section 5 describes the results; Section 6 presents
Sustainability 2024, 16, 6368 3 of 19

the discussion and contributions; Section 7 describes the limitations and future research
directions; Section 8 concludes the study.

2. Literature Review
The United Nations’ 17 Sustainable Development Goals (SDGs) aim to ensure prosper-
ity, peace, and the elimination of poverty [15]. Fintech has been recognized as a key enabler
of financial inclusion and SDG achievement, as it increases access to various financial
services, reduces costs, and promotes equal opportunities [16,17]. Fintech services can
empower financial inclusion, drive economic growth, and achieve sustainable development
by increasing accessibility, reducing costs, and promoting equal opportunities [18].
The recent emergence of BNPL apps offers a new opportunity for fintech to facilitate
financial inclusion. By providing consumers with greater flexibility and convenience, BNPL
apps can expand access to financial services and contribute to SDG achievement. This
is particularly important for individuals with limited income and access to traditional
financing sources, such as Gen Z.
Similarly to any other innovative technology, consumer perceptions and satisfaction
are crucial factors influencing the success of BNPL apps. While several studies have exam-
ined fintech and mobile payment adoption (e.g., [2,3]), the literature suggests that research
on BNPL is in its early stages, with only a limited number of studies since its emergence in
2020, particularly on factors influencing consumer adoption and satisfaction. For example,
Aalders [19] conducted a content analysis of three BNPL providers to identify responsible
consumers: this study found that BNPL companies offer easier loans compared to credit
card companies and define responsible consumers as those who make repayments on time.
Furthermore, the redefinition of responsible consumers has resulted in increased consump-
tion, particularly among lower-income families. In their literature review, Pattamatta and
Dabadghao [20] highlighted that point-of-sale lending such as BNPL is commonly used
by younger generations who are underserved and new to the credit environment. Feng
et al. [21] agree that the BNPL mechanism attracts young adults without credit access. They
developed a conceptual model to help small stores optimize their use of BNPL mechanisms.
Johnson et al. [22] conducted a regulatory analysis of BNPL services in Australia. Through
their content analysis, they identified failures in the regulations concerning consumer
protection terms. Similarly, Tan [23] examined how BNPL corporations attempt to attract
new and profitable consumers to Singapore’s debt industry. Their content analysis revealed
that BNPL is perceived as a means to fulfill immediate consumption needs, potentially for
unnecessary products, while concealing the fact that the consumers are entering the debt
industry, especially young individuals without a credit profile.
The influence of BNPL on overconsumption or impulsive buying behavior has been
an area of interest in several studies. For instance, Ah Fook and McNeill [24] examined the
impact of BNPL on the impulsive buying behavior of young female adults in the online
fashion context. Through a quantitative analysis using a questionnaire and impulsive
buying behavior theory, they found that BNPL consumers tended to engage in higher levels
of online consumption than non-BNPL consumers. They also identified a clear link between
impulsive buying tendencies and pay-later tools, supporting the impulsive consumption
concept. Similarly, Susanto et al. [25] explored the impact of BNPL and hedonic motivation
on Gen Z’s impulsive buying behavior on Shopee, a popular e-commerce platform. They
found that BNPL and hedonic motivation both positively affect Gen Z’s impulsive buying
behavior on Shopee.
Very recent studies have applied theories related to technology adoption. Hidayat
et al. [14] examined BNPL adoption in Indonesia using TAM and TPB theories. Their
findings showed that perceived risk, trust, and subjective norms significantly influenced
consumers’ usage intention, while perceived ease of use and perceived usefulness did
not. In contrast, Jagadhita et al. [13] employed an extended TAM to investigate BNPL
adoption in Indonesia, finding that perceived ease of use, perceived usefulness, and trust
positively influenced continuance intention to use BNPL. While both studies confirmed
Sustainability 2024, 16, 6368 4 of 19

the significance of trust, they differed in their findings regarding the impact of perceived
ease of use and perceived usefulness. Notably, Jagadhita et al. [13] also found that trust
mediates this relationship.
A few recent studies have considered demographic and generation specifications
in adopting BNPL. For instance, Raj et al. [26] investigated the intention to adopt BNPL
among undergraduate and postgraduate students with a sample consisting of Indian
students. Using an extended TPB model, they found that subjective norms, attitude,
and perceived behavior significantly influence intention to use BNPL, with trust playing a
partial mediating role. Privacy concerns negatively impact trust and attitudes toward BNPL.
Additionally, Behera and Dadra [27] employed the stimulus–organism–response (SOR)
framework to investigate the attitudes of young consumers toward fintech credit services,
including BNPL. Their study revealed that perceived usefulness, structural assurance,
flexibility, and affordability exerted a significant influence on consumers’ attitudes toward
fintech credit services. A further study was conducted by Juita et al. [28] in Indonesia that
explored how gender differences affect the adoption of BNPL services. These researchers
surveyed 257 consumers and found that digital financial literacy has a significant impact
on the decision to adopt BNPL. Notably, their study found that financial literacy has a
stronger influence on women’s decisions to use BNPL. Their study also discovered that both
perceived financial and security risks are significant factors in consumers’ decisions, with
financial risk having a greater impact. Schomburgk and Hoffmann [29] examined the effect
of mindfulness on BNPL usage. Through a quantitative approach using a questionnaire in
Australia, they discovered that mindfulness increased self-control and reduced impulsive
buying behavior, thereby reducing the use of BNPL services.
This literature review reveals a scarcity of studies examining the factors driving
consumer continuance intention to use BNPL apps, particularly among Gen Z. Existing
research has sometimes yielded conflicting results, as seen in the studies by Jagadhita
et al. [13] and Hidayat et al. [14], highlighting the need for further investigation. Moreover,
the prevailing studies have employed limited technology adoption models (TAM, TPB, and
SOR), which underscores the necessity to explore alternative frameworks and additional
factors influencing BNPL adoption. Furthermore, the existing literature is confined to
a narrow range of countries, including the UK, Bangladesh, Australia, Singapore, India,
and Indonesia. Saudi Arabia, with its significant investments in fintech development,
remains understudied in this area. Targeting this context will contribute to the existing
body of knowledge.

3. Theoretical Bases and Hypothesis Development

3.1. Unified Theory of Acceptance and Use of Technology (UTAUT)
The UTAUT adoption theory, introduced by Venkatesh et al. [30], is built upon six exist-
ing models: the theory of planned behavior (TPB), the theory of reasoned action (TRA), the
technology acceptance model (TAM), the motivation model (MM), social cognitive theory
(SCT), and the diffusion of innovation (DOI). Recognizing the difficulty researchers faced in
selecting among different theories and models, Venkatesh et al. [30] emphasized the need
for a unified model to analyze consumer behavior in the realm of information technology.
The UTAUT model is commonly employed to explore consumer technology adop-
tion. This model revolves around four key elements: performance expectancy (PE), effort
expectancy (EE), social influence (SI), and facilitating conditions (FCs). The term perfor-
mance expectancy refers to the extent to which a person thinks that the system usage will
enable them to improve their level of job performance. The degree of ease connected with
the system usage is how effort expectation is defined. Social influence is the degree to
which a person believes that significant individuals think they should use the new method.
Facilitating conditions pertain to an individual’s confidence in the presence of adequate
organizational and technical resources that support the utilization of the system. Venkatesh
et al. [30] suggest that UTAUT explains up to 70% of variation in behavioral intention,
Sustainability 2024, 16, 6368 5 of 19

which is significantly more than each of the six preceding theories and models, each of
which had a maximum explanation of only approximately 40%.
The UTAUT model has been utilized by several studies in the technology adoption
research generally (e.g., [31–33]) and in fintech and mobile payment adoption specifically
(e.g., [34,35]). For instance, Alkhwaldi et al. [34] investigated behavioral intentions and
loyalty in the aftermath of COVID-19 in a developing-country context to learn more about
how consumers adopt fintech. The four basic UTAUT constructs, namely PE, EE, SI, and
FCs, were combined with three additional elements, i.e., personal inventiveness, financial
literacy, and uncertainty avoidance, to create a conceptual framework. The results showed
that the components PE, SI, and FCs positively influence behavioral intentions. Moreover,
factors affecting behavioral intentions to adopt fintech were examined by Antwi-Boampong
et al. [36]. Their results demonstrated that PE and EE were predictive of Ghanaian fintech
consumers’ behavioral intentions. In Indonesia, Mansyur and Ali [37] investigated the
uptake of Sharia-compliant fintech among millennials. Their findings demonstrate that
behavioral intention (BI) is considerably and positively influenced by PE, EE, and FCs.
Furthermore, Chan et al. [35] examined consumer acceptance of fintech in Open Banking.
Their research revealed that consumers’ intentions to use Open Banking are directly shaped
by PE, EE, SI, and perceived risk. Rabaa’i [38] conducted an empirical analysis into Kuwait’s
use of mobile wallets in the fintech industry. The findings of that study suggested that PE,
EE, and FCs have an impact on consumers’ behavioral intentions to use mobile finance
apps. By including personal innovativeness, trust, grievance, and anxiety as extensions
to the UTAUT model, Patil et al. [39] investigated the adoption of mobile payment apps
among Indian consumers. Their findings showed that PE and EE are important drivers
of customer behavior while using mobile payments; also, SI and conducive circumstances
have a big impact on individuals’ intentions to use them. Furthermore, Upadhyay et al. [40]
extended UTAUT with perceived severity and self-efficacy to assess customer uptake of
mobile payment services during COVID-19. The results showed that customers’ attitudes
regarding the adoption of mobile payment services are significantly positively impacted
by PE and EE. Additionally, this study examines actual users rather than non-users; so,
it examines continuance intention to use BNPL apps. The examination of continuance
intention has been accepted by several previous studies (e.g., [9,41–43]). In light of the
aforementioned studies, the following hypotheses are proposed:

H1. PE has a positive impact on the intention to continue utilizing BNPL apps among Gen Z.

H2. EE has a positive impact on the intention to continue utilizing BNPL apps among Gen Z.

H3. SI has a positive impact on the intention to continue utilizing BNPL apps among Gen Z.

H4. FCs have a positive impact on the intention to continue utilizing BNPL apps among Gen Z.

In the technology acceptance model (TAM), the perceived ease of use (PEOU) is
considered to have a positive effect on the perceived usefulness (PU) [44]. However, in the
UTAUT model, EE encompasses the PEOU, while PE includes PU. Recent studies in the
application adoption context have found that the PEOU directly predicts the PU (e.g., [45]).
Therefore, the fifth hypothesis (H5) is proposed as follows:

H5. EE has a positive impact on the PE of BNPL apps.

3.2. Information Systems Success Model (D&M ISS Model)

The D&M ISS model introduced by DeLone and McLean [46] has become a commonly
utilized framework for assessing the effectiveness of information systems (IS) across dif-
ferent research settings. The model encompasses six components, namely system quality
(SQ), information quality (IQ), service quality (SRQ), satisfaction (SAT), intention, and
Sustainability 2024, 16, 6368 6 of 19

usage behavior. DeLone and McLean’s [46] explanation of SQ involves it being a technical
performance indicator that determines a service’s success. They added that SQ is usually
evaluated based on its technical attributes, such as reliability, availability, adaptability, re-
sponse time, and usefulness. SRQ has been defined as the assessment of services delivered
by a provider of information systems. IQ encompasses completeness, customer acceptabil-
ity, simplicity, and security of the content of an app. Numerous studies have examined the
D&M ISS model in diverse contexts (e.g., [47,48]). Furthermore, a number of studies have
examined the D&M ISS model in the fintech and mobile payment context (e.g., [49–51]).
For instance, Purwati et al. [50] used the D&M ISS model to evaluate the satisfaction level
and benefit of mobile banking usage in Indonesia. Their findings indicate that SQ, IQ, and
SRQ significantly impact customer satisfaction, supporting the IS Success model as being
a measure of IS success. Baabdullah et al. [49] investigated the factors predicting the use
of mobile banking and their impact on customer loyalty and satisfaction in the context
of Saudi Arabia. Using an iterated model that includes the D&M ISS model, they found
that SQ and SRQ (from the IS Success model) have a significant association with the actual
utilization of mobile banking among Saudi consumers. Within the context of fintech apps’
success, Riantama et al. [51] employed the D&M ISS model to evaluate the moderating role
of trust in the relationship between SQ, IQ, SRQ, and consumer SAT with fintech apps in
Indonesia. Their findings revealed that IQ had the most significant influence on consumer
satisfaction. They also found that SRQ, when combined with trust, had a stronger impact
on determining consumer satisfaction. A combination of the D&M ISS model with the
self-determination theory was utilized by Rahi and Abd. Ghani [52] to investigate the
continuance intentions of internet banking consumers. They found that the customers’
intentions were determined by multiple factors such as IQ, SRQ, SAT, and various types
of regulations. Similarly, Angelina et al. [53] investigated how consumer satisfaction and
behavior were affected by varying levels of SQ, SRQ, and IQ in e-commerce apps. Their
results, based on the D&M ISS Model, showed that consumer satisfaction was significantly
influenced by both SQ and SRQ, while IQ had little to no impact on satisfaction levels.
According to the studies provided, the D&M ISS model has demonstrated its practicality
in explaining consumer behavior and satisfaction toward emerging technologies. Thus, it
could be effectively applied to investigate the D&M ISS Model in the context of BNPL apps
in this particular study. Thus, the following hypotheses were formulated:

H6. SQ has a positive impact on Gen Z consumers’ satisfaction with BNPL apps.

H7. SRQ has a positive impact on Gen Z consumers’ satisfaction with BNPL apps.

H8. IQ has a positive impact on Gen Z consumers’ satisfaction with BNPL apps.

Satisfaction is commonly expressed by consumers after they have made a purchase [53].
Several studies define satisfaction (SAT) as the way in which consumers evaluate their level
of happiness or unhappiness according to whether they obtained all of the expected benefits
from engagements with an e-commerce platform (e.g., [52,54]). Studies on business-to-
consumer (B2C) e-commerce suggest that a person’s continuance intention (CI) is essential
for prolonged success (e.g., [55]). Likewise, research on mobile apps has found a positive
correlation between consumer satisfaction and CI regarding mobile apps, indicating that
consumers are more likely to engage with mobile apps when they are highly satisfied with
their experience (e.g., [41–43]). Therefore, it is anticipated that the satisfaction of consumers
with BNPL apps will play a vital role in influencing their intention to continue using them.
This expectation is expressed as the following hypothesis:

H9. Gen Z consumers’ satisfaction with BNPL apps has a positive impact on their intention to
continue using these apps.
 satisfaction of consumers with BNPL apps will play a vital role in influencing their inten-
tion to continue using them. This expectation is expressed as the following hypothesis:

H9. Gen Z consumers’ satisfaction with BNPL apps has a positive impact on their intention to
Sustainability 2024, 16, 6368 7 of 19
continue using these apps.

3.3. Integrated Theories

3.3. Integrated Theories
Some scholars have suggested combining theoretical models or frameworks for spe-
Some scholars
cific information systemshave suggested
to better analyze combining theoretical
the adoption models or frameworks
and continuance intention offor
a spe-
cific information systems to better analyze the adoption and continuance intention of a
technology (e.g., [56]). Previous relevant research on mobile banking adoption in the
technology (e.g., [56]). Previous relevant research on mobile banking adoption in the Saudi
Saudi Arabian context has integrated the UTAUT and D&M ISS models to better under-
Arabian context has integrated the UTAUT and D&M ISS models to better understand
stand the use of m-banking from Saudi consumers’ perspectives [49]. Therefore, integrat-
the use of m-banking from Saudi consumers’ perspectives [49]. Therefore, integrating
ing the UTAUT and D&M ISS models is believed to be beneficial to better understand the
the UTAUT and D&M ISS models is believed to be beneficial to better understand the
continuance intention of BNPL apps, especially among the youth population in Saudi Ara-
continuance intention of BNPL apps, especially among the youth population in Saudi
bia, which constitutes a high proportion of the country and is one of the key markets for
Arabia, which constitutes a high proportion of the country and is one of the key markets for
fintech apps in the Middle East. This multi-theory approach enriches the existing litera-
fintech apps in the Middle East. This multi-theory approach enriches the existing literature
ture on BNPL app usage and is expected to enhance the model’s predictive power in ana-
on BNPL app usage and is expected to enhance the model’s predictive power in analyzing
lyzing consumers’ intentions to continue using BNPL apps, and their satisfaction. The
consumers’ intentions to continue using BNPL apps, and their satisfaction. The conceptual
conceptual framework of this paper includes inherited independent variables from the
framework of this paper includes inherited independent variables from the UTAUT model,
UTAUT model,
namely PE,namely PE,FCs,
EE, SI, and EE, SI,
andand FCs, and variables
independent independent variables
generated fromgenerated
the D&M from
ISS model,
the D&M ISS model, namely SQ, SRQ, IQ, and SAT, as well as CI as
namely SQ, SRQ, IQ, and SAT, as well as CI as a dependent variable. Thea dependent variable.
conceptual
The conceptual
frameworkframework
is depictedisindepicted
Figure [Link] Figure 1.

Figure 1. Conceptual framework.

Figure 1. Conceptual framework.

4. Methodology
4. Methodology
A survey questionnaire was employed in this study. The survey’s questions were
A survey questionnaire was employed in this study. The survey’s questions were
adapted from earlier research to better serve the goal of this investigation, which was to
adapted from earlier research to better serve the goal of this investigation, which was to
determine the variables influencing the continuing intention to use BNPL apps among
determine the variables influencing the continuing intention to use BNPL apps among
Gen Z consumers in Saudi Arabia. All of the questions in the survey were close-ended
Gen Z consumers in Saudi Arabia. All of the questions in the survey were close-ended and
and respondents were asked to choose from multiple-choice answers. The participants
respondents were asked to choose from multiple-choice answers. The participants were
were asked to rate each question using a 7-point Likert scale, where 1 indicated a strong
asked to rate each question using a 7-point Likert scale, where 1 indicated a strong
disagreement, 2 represented disagreement, 3 indicated a slight disagreement, 4 meant they
neither agreed nor disagreed, 5 represented a slight agreement, 6 indicated agreement, and
7 represented a strong agreement. The scale items were translated into Arabic applying
Brislin’s back-translation method to ensure accuracy [57]. A team of experts reviewed and
confirmed the appropriateness of the translated questionnaire to measure the variables.
There was pilot research study carried out prior to the main survey with 35 Gen Z individ-
uals from Saudi Arabia who had experience using BNPL apps. Most respondents found
Sustainability 2024, 16, 6368 8 of 19

the questionnaire easy to understand and complete in a short time. Table 1 summarizes the
scale items of the selected constructs.

Table 1. Scale items of the selected constructs.

Construct Items Source

PE1 I find BNPL platforms to be useful in my daily life.
Performance PE2 Using BNPL platforms increases my chances of achieving tasks that are important to me.
[30]
Expectancy PE3 BNPL platforms help me accomplish tasks more quickly.
PE4 Using BNPL platforms increases my productivity.
EE1 Learning how to use BNPL platforms is easy for me.
Effort EE2 My interaction with BNPL platforms is clear and understandable.
[30]
Expectancy EE3 I find BNPL platforms easy to use.
EE4 It is easy for me to become skilled at using BNPL platforms.
SI1 People who are important to me think that I should use BNPL platforms.
Social
SI2 People who influence my behavior think that I should use BNPL platforms. [30]
Influence
SI3 People whose opinions that I value prefer that I use BNPL platforms.
FC1 I have the resources necessary to use BNPL platforms.
Facilitating FC2 I have the knowledge necessary to use BNPL platforms.
[30]
Conditions FC3 BNPL platforms are compatible with other technologies I use.
FC4 I can get help from others when I have difficulties using BNPL platforms.
SQ1 BNPL platforms quickly load all of their text and graphics.
SQ2 BNPL platforms are user-friendly.
System
SQ3 BNPL platforms are easy to navigate. [46,58,59]
Quality
SQ4 BNPL platforms are visually attractive.
SQ5 I would find BNPL platforms secure enough to conduct my payments.
SRQ1 The level of service quality I receive from BNPL platforms is high.
Service
SRQ2 The quality of the service I receive from BNPL platforms is excellent. [46,58,59]
Quality
SRQ3 BNPL platforms provide a high level of service quality.
IQ1 BNPL platforms provide me with information relevant to my needs.
Information IQ2 BNPL platforms provide me with sufficient information.
[46,58,59]
Quality IQ3 BNPL platforms provide me with accurate information.
IQ4 BNPL platforms provide me with up-to-date information.
SAT1 I am generally pleased with BNPL platform services.
SAT2 I am very satisfied with BNPL platform services.
Satisfaction SAT3 I am happy with BNPL platforms. [46,58,59]
SAT4 I am satisfied with the way that BNPL platforms carry out transactions.
SAT5 Overall, I am satisfied with BNPL platforms.
CI1 I will continue to use BNPL platforms on a regular basis in the future.
Continuance CI2 I expect that my use of BNPL platforms for handling my financial transactions will continue
[46,59]
Intention in the future.
CI3 I intend to continue to perform small payments on BNPL platforms.

An online questionnaire was utilized to gather primary data for the empirical in-
vestigation, which took place in Saudi Arabia. We used Google Forms to survey Gen Z
representatives in June and July 2023 to learn more about their preferences for BNPL apps.
The web links were sent to high-school and college students’ online groups on social media
to reach the target population, which was between the ages of 14 and 27. The present study
utilized convenience sampling, which is considered to be cost-effective and allows for the
inclusion of a diverse range of technology users in the sample, facilitating generalization of
the results [60]. Prior studies have verified the use of convenience sampling in quantitative
survey approaches (e.g., [39,61]). To enhance sample representativeness and address any
issues of sampling bias, a larger sample size was necessary. This method was used to create
the sample without putting any numerical restrictions on the degree of representation of
particular demographic factors such as gender, income, or place of residence. However, the
distributed questionnaire was only intended for respondents who were members of Gen Z,
Sustainability 2024, 16, 6368 9 of 19

which prompted us to point out the targeted nature of the sampling. A total of 722 surveys
were collected, and 380 of them were completed, receiving a response percentage of 52.6%.
Kline [62] asserts that a research sample size of 200 to 400 is enough for carrying out
statistical tests in a complicated study model with numerous variables, which applies to
the current study.
One of the most preferred techniques for confirmatory factor analysis (CFA) in social
science research is Structural Equation Modeling (SEM), which enables researchers to
assess the validity of connections between components and relationships among different
hypotheses within the same model [60]. Hence, SEM was utilized in the present research,
and statistical software (i.e., SPSS version 26 and SmartPLS 4) was used to analyze the
results. During the data analysis via Smart PLS, the two-stage approach was employed
as several studies have confirmed the appropriateness of this approach for evaluating
model goodness-of-fit and for evaluating and confirming a presented hypothesis [60]. In
the first stage, the measurement model was assessed by examining several key indicators
such as Cronbach’s alpha, composite reliability, average variance extracted, factor loadings,
construct reliability, and discriminant validity. Once the evaluation of the measurement
model yielded satisfactory results, we moved to the second stage, which focused on
conducting the structural model and hypothesis testing.

5. Results
5.1. A General Overview
Demographic data from the respondents, including age, gender, and education, were
gathered for the current study. Among the participants, the females are 59.8% and the
males are 40.2%. In terms of age distribution, the largest group of the sample are aged
between 21 and 27 years old (70.6%). A high percentage of this age group held a Bachelor’s
degree, with 45.1% of the total sample being educated to that level, followed by high-school
graduates at 24.5%. This is logical, given that Gen Z is the focus of this investigation. The
demographic details are presented in Table 2.

Table 2. General information.

Category Details Percentage

Male 40.2%
Gender
Female 59.8%
14 to 20 years old 29.4%
Age
21 to 27 years old 70.6%
Lower than high school 4.9%
High school 24.5%
Educational level Diploma 10.2%
Bachelor’s degree 45.1%
Master’s degree 15.3%
Simple to make payments 54.6%
I use fintech payment apps More flexible 40.6%
because it is: Free of interest 39.7%
Simple to receive approval 31.2%
Clothing 77.3%
Entertainment 23.7%
Books 14.5%
Products or services I have Furnishing 28.2%
purchased with BNPL are: Groceries 5%
Food delivery services 5%
Electronics 41.4%
Travel tickets 6.5%
Sustainability 2024, 16, 6368 10 of 19

When asked why they use BNPL apps, research participants had a choice of many
responses. Most responders claimed that the reasons they picked BNPL apps were that
they were simple to use for making payments (54.6%), more flexible (40.6%), interest-free
(39.7%), and had an easy approval procedure (31.2%). Furthermore, respondents were
asked about the type of products or services they purchased with BNPL apps, with the
option to choose multiple answers. The most commonly purchased products were clothing
(77.3%), followed by electronics (41.4%), household furnishings (28.2%), entertainment
(23.7%), books (14.5%), and travel tickets (6.5%), followed by groceries and food delivery
services, with (5%) for each of these categories.

5.2. Descriptive Statistics

To evaluate the outcomes of the variables, descriptive statistics were employed to
compute the means and standard deviations of the researched constructs. Determining
the distribution shape of the examined constructs by conducting a normality check as
the first stage in the investigation is vital [60]. The findings of a statistical test may be
invalidated if a normal distribution is not produced. Kurtosis and skewness, which evaluate
the distribution’s peak level and balance, respectively, were studied [60]. Skewness and
kurtosis values for a normal distribution are both 0. Hair et al. [60] determined that the
permissible limit for kurtosis and skewness is 2.58. In this study, all of the tested constructs
had acceptable ranges.

5.3. Common Method Bias

By utilizing a self-report method, the respondents were asked to submit answers to
items for the independent and dependent factors [63]. This raises concerns about common
method bias. The study questions for each of the nine examined constructs (PE, EE, SI, FCs,
SQ, SRQ, IQ, SAT, and CI) were subjected to analysis using Harman’s single-factor analysis
in order to overcome this problem [63]. Only 38.25% of the variation falls under the 50%
cutoff point suggested by [63]. Therefore, the data from this investigation do not show
any substantial indicators of common method bias, according to the findings of Harman’s
single-factor analysis.

5.4. Measurement Model

A literature review was used to create the model, and adoption metrics for fintech
payment applications were selected. The reliability and validity of the examined variables
were first evaluated. Cronbach’s alpha, Omega reliability, and composite reliability (CR)
were used to evaluate reliability. The standards for construct reliability and validity all
met the fundamental criteria, as shown in Table 3 [60,62]. It was found that the Cronbach’s
alpha values were higher than 0.70, the threshold advised by [60]. In this regard, FCs
had the lowest value (0.844), and SRQ had the greatest value (0.935) for Cronbach’s alpha.
Furthermore, McDonald’s Omega was developed to assess reliability. The results show that
all scale items displayed significant internal consistency, as evidenced by the McDonald’s
Omega values being more than 0.70 [64]. Additionally, the CR values of the nine examined
variables were over 0.70, the threshold suggested in [60]. The PE sample had the lowest
CR value of 0.917, whereas the SRQ sample had the highest CR value of 0.959. Addition-
ally, [60] recommended that the average variance extracted (AVE) values for all nine latent
components should be above 0.50. SQ had the lowest AVE (0.726), while IQ had the highest
AVE (0.921). Table 3 present the tests results of the Cronbach’s alpha, Omega reliability, CR,
and AVE.
All factor loadings of the scale items were above 0.50, according to the analysis’s
findings, with the lowest value coming in at 0.750. Furthermore, the square root of the AVE,
which should be above 0.70 as suggested in [60], ranged from 0.852 for SQ to 0.960 for IQ
and fell within the acceptable range. The factor loadings, the CR, the AVE, and the square
root of AVE are shown in Table 4.
Sustainability 2024, 16, 6368 11 of 19

Table 3. Cronbach’s alpha, Omega reliability ω, composite reliability (CR), and average variance
extracted (AVE).

Cronbach’s Alpha Omega Reliability ω Composite Reliability (CR) Average Variance Extracted (AVE)
PE 0.879 0.881 0.917 0.734
EE 0.916 0.920 0.924 0.803
SI 0.893 0.895 0.942 0.845
FCs 0.844 0.847 0.933 0.824
SQ 0.906 0.910 0.930 0.726
SRQ 0.935 0.938 0.959 0.885
IQ 0.895 0.897 0.934 0.921
SAT 0.894 0.896 0.957 0.817
CI 0.895 0.898 0.935 0.828

Table 4. Factor loadings, construct reliability, and average variance extracted.

Items FL CR AVE Sqrt AVE

Performance Expectancy 0.917 0.734 0.857
PE1 0.861
PE2 0.847
PE3 0.889
PE4 0.829
Effort Expectancy 0.924 0.803 0.896
EE1 0.907
EE2 0.894
EE3 0.914
EE4 0.859
Social Influence 0.942 0.845 0.919
SI1 0.913
SI2 0.906
SI3 0.903
Facilitating Conditions 0.933 0.824 0.908
FC1 0.815
FC2 0.839
FC3 0.896
FC4 0.750
System Quality 0.930 0.726 0.852
SQ1 0.821
SQ2 0.861
SQ3 0.861
SQ4 0.858
SQ5 0.859
Service Quality 0.959 0.885 0.941
SRQ1 0.939
Sustainability 2024, 16, 6368 12 of 19

Table 4. Cont.

Items FL CR AVE Sqrt AVE

SRQ2 0.947
SRQ3 0.937
Information Quality 0.934 0.921 0.960
IQ1 0.877
IQ3 0.923
IQ4 0.925
Satisfaction 0.957 0.817 0.904
SAT1 0.894
SAT3 0.919
SAT5 0.912
Continuance intention 0.935 0.828 0.910
CI1 0.938
CI2 0.928
CI3 0.862
Note(s): factor loading (FL), construct reliability (CR), average variance extracted (AVE), square root of average
variance extracted (Sqrt AVE).

By examining the square root of the AVE for each variable with the latent variables’
inter-correlation values, discriminant validity was evaluated. The square root of the AVE
of all examined constructs should be above the inter-correlation values of each construct.
The results suggest that the scale and components employed in the present investigation
satisfy the requirements for discriminant validity [65]. The measuring model demonstrates
the suitability of the selected constructs for the model (Table 5).

Table 5. Discriminant validity assessment and heterotrait–monotrait ratio of correlations (HTMT).

BI EE FCs IQ PE SAT SI SQ SRQ

CI 0.910
EE 0.456 0.896
FCs 0.656 0.836 0.908
IQ 0.581 0.582 0.748 0.960
PE 0.65 0.709 0.782 0.586 0.857
SAT 0.899 0.621 0.768 0.703 0.694 0.904
SI 0.622 0.335 0.623 0.564 0.618 0.577 0.919
SQ 0.674 0.712 0.808 0.894 0.63 0.845 0.527 0.852
SRQ 0.667 0.627 0.733 0.727 0.598 0.812 0.501 0.809 0.941
Note(s): Bold values are the square roots of the AVE.

5.5. Structural Model

The model fit statistics were examined using the basic CB-SEM algorithm in SmartPLS
4. The findings presented a suitable level of fit. The chi-square was 194.369, GFI = 0.958,
AGFI = 0.923, NFI = 0.954, TLI = 0. 951, CFI = 0.957, and RMSEA = 0.062. Therefore, the
findings of all of the goodness-of-fit indices were within an acceptable range (Table 6).
The majority of the research hypotheses were supported by the route coefficient
analysis because they were determined to be significant. The hypotheses were assessed
using the critical t-value analysis of the path estimations. Table 7 displays the results of the
Sustainability 2024, 16, 6368 13 of 19

hypothesis testing. The findings supported seven of the nine investigated hypotheses. H4
and H8 were found to be not significant.

Table 6. Model fit indices.

Fit Indices Threshold Value Fit Index Value

Chi-square 194.369
GFI ≥0.95 0.958
AGFI ≥0.90 0.923
NFI ≥0.95 0.954
TLI ≥0.95 0. 951
CFI ≥0.95 0.957
RMSEA <0.08 0.062

Table 7. Hypothesis testing.

Hypothesis Path Path Coefficient β t-Statistic p-Value Empirical Evidence

H1 PE→CI 0.239 0.279 3.030 ** 0.002 Supported
H2 EE→CI 0.127 0.241 2.312 ** 0.021 Supported
H3 SI→CI 0.221 0.273 1.999 ** 0.046 Supported
H4 FCs→CI 0.160 0.015 1.543 n.s. 0.123 Not supported
H5 EE→PE 0.640 0.735 19.682 *** 0.000 Supported
H6 SQ→ SAT 0.430 0.474 4.709 *** 0.000 Supported
H7 SRQ→SAT 0.347 0.351 4.067 *** 0.000 Supported
H8 IQ→SAT 0.004 0.082 1.556 n.s. 0.120 Not supported
H9 SAT→CI 0.540 0.547 10.314 *** 0.000 Supported
Note(s): ** p < 0.01, *** p < 0.001, n.s. not significant.

Hair et al. [60] suggested that R2 values were used to assess the extent to which the
model explained the variance in the dependent variable. Figure 2 displays the correlation
R2 values for each construct in the model, which shows that 60.3% of the variance in fintech
payment application adoption was explained by the variable CI (R2 = 0.603). Additionally,
the
Sustainability 2024, 16, results
x FOR show that the model can provide explanations14for
PEER REVIEW of 2060.3% of the variance in CI,

and 81.7% of the variance in satisfaction (R2 = 0.603 and 0.817, respectively).

Figure 2. Figure
The [Link]
The structural model. Note(s): ** p < 0.01, *** p < 0.001, n.s. not significant.
model. Note(s): ** p < 0.01, *** p < 0.001, n.s. not significant.
6. Discussion and Contributions
The Saudi government is increasingly concerned about the growth of BNPL apps,
given their contribution to achieving its 2023 Vision. This growth is fueled by the satisfac-
tion provided by these apps and consumers’ continued usage of them, particularly Gen Z
consumers who are native to digital platforms. This, in turn, motivated the current study
to test aspects that determine the adoption and satisfaction of BNPL apps among Gen Z.
In order to empirically examine the factors impacting Gen Z consumers’ intentions
to continue using BNPL apps, this study used an integrated approach. The recently cre-
Sustainability 2024, 16, 6368 14 of 19

6. Discussion and Contributions

The Saudi government is increasingly concerned about the growth of BNPL apps,
given their contribution to achieving its 2023 Vision. This growth is fueled by the satisfaction
provided by these apps and consumers’ continued usage of them, particularly Gen Z
consumers who are native to digital platforms. This, in turn, motivated the current study
to test aspects that determine the adoption and satisfaction of BNPL apps among Gen Z.
In order to empirically examine the factors impacting Gen Z consumers’ intentions to
continue using BNPL apps, this study used an integrated approach. The recently created
model incorporates elements from the UTAUT and D&M ISS models. A two-stage SEM
process was utilized to examine this model. According to the findings, this model is capable
of accurately predicting the continuance intentions of Gen Z consumers to employ BNPL
apps and recording their satisfaction levels with such apps.
It was found that PE and EE had a significant influence on Gen Z continuance intention
toward BNPL app adoption; therefore, H1 and H2 were supported. Such results are similar
to the findings of Jagadhita et al. [13], who found a significant influence of perceived
usefulness and ease of use on usage intention of BNPL in Indonesia, but contradict the
findings of Hidayat et al. [14].
In addition, SI showed a significant positive affect on Gen Z continuance intention
toward BNPL apps and H3 was also supported. These outcomes are consistent with earlier
research such as that of Hidayat et al. [14], Chan et al. [35], and Xie et al. [66]. However,
H4 was not supported, as the influence of facilitating conditions on Gen Z continuance
intention toward BNPL apps was found to be insignificant, consistent with earlier research
by Aydin and Kumru [67]. A possible explanation for this is that Gen Z are digital natives
and can use BNPL apps without significant issues or needing support. Furthermore, it was
discovered that the EE of BNPL apps positively influences the PE; this supports H5. These
outcomes are in line with those of earlier studies [45,68]. Overall, it can be concluded that
based on UTAUT, the intention to continue using BNPL apps among Gen Z consumers in
Saudi Arabia is significantly influenced by the PE, EE, and SI.
The D&M ISS model was added in order to expand the UTAUT. The results of the SEM
analysis show that SQ and SRQ have a big impact on Gen Z’s satisfaction. This supports
H6 and H7 and is in alignment with other studies by Yoon and Kim [54] and Lai [55].
However, the effect of IQ on satisfaction was found to be not significant and H8 was not
supported. Similar results were found by Baabdullah et al. [49] in their study of mobile
banking adoption among Saudis.
This study also examined the effect of Gen Z’s satisfaction on continuance intention to
adopt BNPL apps, and the findings show a strong correlation. These results support H9
and are in line with past research by Gu et al. [41], Marinković et al. [42], and Puriwat and
Tripopsakul [43]. Overall, seven out of the nine hypotheses were supported, indicating that
this study’s model is effective in accurately predicting the continuance intention of Gen Z
consumers to adopt BNPL apps, and their satisfaction levels, in Saudi Arabia.

6.1. Theoretical Contributions

This study provides significant theoretical contributions to the existing literature
through the integration of two prominent models—the D&M ISS model by DeLone and
McLean [46] and the UTAUT model by Venkatesh et al. [30]. As suggested in [30], we
explored the application of UTAUT in a novel technological context and further combined
it with the D&M ISS model. Integrating these two models in the context of BNPL apps has
been uncommon in previous research. Furthermore, by offering a conceptual model that
simplifies and explains the use of BNPL from the consumer’s perspective, this study helps
to bridge this gap in the existing literature. Although similar models have been used in
a few studies—such as in examining the acceptance of mobile banking in Islamic banks
in Palestine [69]—our approach represents a novel application of the integrated model in
the BNPL context of Saudi Arabia and Gen Z consumers. Furthermore, while previous
studies have explored this generation’s attitudes toward fintech apps in various contexts,
Sustainability 2024, 16, 6368 15 of 19

none of these studies have employed an integrated model such as the UTAUT–D&M ISS
model we have used in this research, to the best of our knowledge. Studies have explored
Gen Z’s intentions to use fintech payment services and BNPL in Vietnam (e.g., [70]) and
Indonesia [13,14], albeit with different models and factors considered. Additionally, our
research considers several variables that have not previously been explored in the BNPL
literature but may have an impact on consumers’ usage of BNPL. Moreover, this study
bridges a gap in identifying the factors that contribute to the satisfaction and continuance
intention of BNPL consumers, particularly in the context of Saudi Arabia and among Gen Z.
This is significant because Saudi Arabia is considered a youth country and one of the fastest-
growing app markets in the Middle East. Despite the country’s investment in developing
BNPL and other fintech payment services, not a single study has focused on this aspect to
date. In particular, this paper looks at how BNPL apps are being used in Saudi Arabia, with
an ultimate goal of supporting the country’s progress toward achieving its SDGs by 2023.
By empirically evaluating and identifying the crucial factors that motivate Gen Z to keep
using BNPL apps, this study lays a solid platform for future research and provides evidence
to support the country in achieving its 2023 SDGs by 2030. By empirically evaluating and
identifying the crucial factors that motivate Gen Z to keep using BNPL apps, this study
lays a solid platform for future research and provides evidence to support the country in
achieving its 2030 SDGs with regard to financial inclusion and fintech development.

6.2. Practical Contributions

From theory to practice, this study underscores the critical need for designers and
developers to prioritize enhancing the usability and appeal of BNPL apps in order to
effectively engage Gen Z consumers who use them. First and foremost, apps need to be
well structured so that consumers can easily explore them and realize how useful they
are. They should also include information on each consumer, such as their names and
transaction history. Furthermore, marketers should use public figures and influencers to
promote different BNPL apps, as the results indicate that consumers’ surroundings and
social groups would affect their continuance intention to use BNPL apps. Furthermore, Gen
Z consumers emphasize the SQ and SRQ components of the D&M ISS model when utilizing
BNPL apps in the current digital environment where security is a priority. To reduce any
usage uncertainty, BNPL app developers should concentrate on maintaining a stable system
performance. Gen Z consumers are looking for BNPL apps that are secure, simple to use and
make payments on, more flexible, and interest-free; that have an easy approval procedure;
and that open quickly on mobile devices. To match consumer expectations, developers must
offer and frequently update app versions. Furthermore, application developers should
take in to consideration the ethical implications of promoting BNPL usage among Gen Z
consumers as it could lead to overconsumption or debt risks. This includes implementing
responsible lending practices to prevent over-indebtedness, giving consumers control over
their accounts and payments by allowing them to track their expenses and debt in real time,
and educating Gen Z consumers about BNPL services and the potential risks involved. By
incorporating these considerations into BNPL services, application developers can create
a user-friendly experience for Gen Z consumers that prioritizes responsibility, control,
and education.
Developers and marketers should pay attention to these vital components as con-
sumers’ satisfaction will affect consumers’ intentions to continue to use BNPL apps. Imple-
menting the recommended practical implications can enhance the financial inclusion of
Gen Z consumers, facilitating their access to alternative financial services.
This study’s results have crucial implications for policymakers. First, the research
findings demonstrate that the UTAUT constructs and D&M factors impact consumers’
decisions to adopt BNPL apps, emphasizing the need to consider these influences when
developing policies and strategies to encourage app usage among consumers, especially
among Gen Z. Second, policymakers can consider implementing regulations to ensure
that BNPL apps focus on enhancing performance expectancy, effort expectancy, and social
Sustainability 2024, 16, 6368 16 of 19

influence to drive consumer intent for continuous usage. Regulations could also mandate
improvements in system, service, and information quality within BNPL apps to enhance
consumer satisfaction and encourage ongoing use. Furthermore, policymakers can enforce
measures to promote and monitor consumer satisfaction with BNPL apps to support
sustainable usage and positive outcomes for consumers. This balanced approach may help
mitigate the financial risks associated with the overutilization of BNPL for non-essential
products, ensuring financial inclusion and working towards achieving the Sustainable
Development Goals for Gen Z. By implementing these strategies, the growth of the fintech
industry can be facilitated, helping Saudi Arabia achieve its target of having 525 fintech
companies by 2030.

7. Limitations and Future Research Directions

It is crucial to recognize the limits of this research. First, the goal of this study is to
advance knowledge of the continuance intention to use BNPL apps in Saudi Arabia. The
results may not be applicable to other nations because they are specific to the Saudi Arabian
environment. Future studies should examine this subject in various geographic and cultural
settings. Second, this study conducted a survey-based quantitative approach by relying
on self-reported data without corroborating qualitative insights. Future research could
be conducted using a mixed-methods approach by incorporating qualitative methods to
gain better insights and in-depth views of the findings along with the quantitative surveys.
Third, the results’ generalizability might be constrained by the convenience sampling
technique employed in the current research. Future research should look at consumer
histories of using BNPL apps to address this issue and make use of different sampling
strategies in order to ensure a more representative sample. Fourth, this study focuses on
examining the usage behavior of prominent technology consumers, specifically Gen Z,
the reason for this being that individuals of this generation are known for having a high-
consumption, instant-gratification lifestyle, but limited income, making BNPL an appealing
option for their needs. In the future, similar studies can focus on other demographic groups
such as Millennials, who are also known to adopt technologies, or conduct a comparison
between different demographic groups. Fifth, the cross-sectional research design utilized
in the present research prevents the assessment of attitudes that are gradually shifting.
To better understand how views and behaviors surrounding BNPL app adoption change
over time, a longitudinal study is required. Finally, this study has explored the consumer
perception of BNPL and its potential connection to Sustainable Development Goals (SDGs)
through increased financial inclusion. While this research has not provided empirical
evidence of the influence of BNPL on financial inclusion, it serves as a foundation for future
studies to investigate this relationship further. Finally, this study explored the consumer
perspective on BNPL adoption from a technological standpoint. Future research can delve
deeper into other aspects, such as overconsumption or debt risks.

8. Conclusions
In order to evaluate the important drivers of continuing intentions for BNPL apps,
this study focuses on Saudi Arabia, one of the main markets for mobile applications (apps)
in the Middle East. It also focuses on Gen Z, given their important contribution to this
specific fintech sector. To examine these drivers, we integrated the UTAUT and D&M
ISS models, two popular information systems theories, to comprehend the specific effects
of BNPL apps on consumer satisfaction and continuance intention. A sample poll was
conducted, and 380 Generation Z consumers participated. The findings suggest that perfor-
mance expectancy, effort expectancy, and social influence are key drivers of continuance
intention, while system quality, service quality, and information quality impact consumer
satisfaction. Additionally, effort expectancy has a favorable effect on the performance
expectancy of BNPL apps. Satisfaction has a direct impact on whether Gen Z consumers
decide to keep using BNPL apps. This study’s findings suggest that app developers should
prioritize usability, security, and simplicity for Gen Z, while policymakers should consider
Sustainability 2024, 16, 6368 17 of 19

regulations promoting sustainable app usage. This study aims to inform regulators and
fintech providers about Gen Z’s perspectives on BNPL apps, supporting their efforts to
foster financial inclusion, a key component of the Sustainable Development Goals (SDGs).
Future research should address limitations, including financial risk perceptions, to ensure
sustainable usability among Gen Z consumers.

Author Contributions: Conceptualization, S.S.A.; methodology, S.S.A.; software, S.S.A.; validation,

S.S.A. and R.S.A.; formal analysis, S.S.A.; investigation, R.S.A.; resources, R.S.A.; writing—original
draft preparation, R.S.A.; writing—review and editing, S.S.A. and R.S.A. All authors have read and
agreed to the published version of the manuscript.
Funding: This research received no external funding.
Institutional Review Board Statement: Not applicable.
Informed Consent Statement: Not applicable.
Data Availability Statement: Data are contained within the article.
Conflicts of Interest: The authors declare no conflicts of interest.

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