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    The Impact of Buy Now Pay Later (BNPL) Payment Methods on Impulsive Buying Behavior: The Moderating Role of Financial Literacy in the Context of E-Commerce Platforms in Sri Lanka
    (Department of Marketing Management, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Abeysundara, R. H. J. D.; Udovita, P. V. M. V. D.
    With the rapid adoption of Buy Now Pay Later (BNPL) payment methods in Sri Lanka’s e-commerce sector, this study examines their impact on impulsive buying behavior, focusing on the moderating role of financial literacy. While BNPL services provide financial flexibility and convenience, they also encourage impulsive spending by lowering perceived financial barriers. However, the extent to which financial literacy mitigates these tendencies remains underexplored, particularly in emerging economies. Grounded in the Theory of Planned Behavior (TPB) and the Technology Acceptance Model (TAM), this study investigates the behavioral drivers behind BNPL adoption and impulsive buying tendencies. It also considers Sri Lanka’s unique socio-economic and cultural factors that influence consumer behavior. The findings provide insights for policymakers, e-commerce platforms, and financial institutions to promote responsible BNPL usage and financial education initiatives. This study adopts a deductive approach and an explanatory research design, drawing from TPB and TAM frameworks. Data were collected through a structured questionnaire administered to 385 respondents who had used BNPL services for online purchases within the past six months. Convenience sampling was used, and statistical analyses—including correlation and regression—were conducted using SPSS. Descriptive statistics, reliability analysis, and multiple regression techniques were employed to examine the relationships between BNPL usage, impulsive buying behavior, and financial literacy. The results confirm a significant positive relationship between BNPL payment methods and impulsive buying behavior. Consumers who frequently use BNPL services exhibit higher impulsive buying tendencies due to reduced perceived financial barriers, immediate gratification, and ease of deferred payments. Promotional offers, seamless checkout experiences, and psychological perceptions of affordability further drive this behavior. However, financial literacy moderates this relationship, with financially literate consumers demonstrating better control over their purchases and a heightened awareness of the long-term financial implications of BNPL usage. While financial literacy does not entirely eliminate impulsive buying tendencies, it significantly reduces their frequency and intensity. The study also highlights Sri Lanka-specific socio-economic factors, such as limited credit card penetration, varying levels of financial education, and cultural attitudes toward debt, which shape consumer behavior differently from developed markets. The study is subject to several limitations. The reliance on convenience sampling may introduce bias and limit the generalizability of findings. Additionally, the cross-sectional design prevents tracking long-term behavioral changes. Self-reported data may lead to response bias, as participants could overstate or understate their financial behaviors. Moreover, the study does not consider external macroeconomic factors, such as inflation, interest rates, or financial regulations, which could impact BNPL adoption and impulsive buying behavior. Theoretically, this study contributes to the BNPL and consumer behavior literature by integrating financial literacy as a moderating factor. Practically, the findings provide actionable insights for policymakers, e-commerce platforms, and financial institutions. To mitigate impulsive buying behavior, financial education initiatives should be integrated into digital financial services. BNPL providers should ensure transparent marketing strategies, helping consumers make informed purchasing decisions. Businesses can develop targeted consumer protection policies to encourage responsible BNPL usage while maintaining a balance between consumer spending and financial well-being. Future studies should employ probability sampling with a larger, more diverse sample to enhance generalizability. Additionally, longitudinal research would provide insights into how regulatory changes, technological advancements, and evolving consumer preferences influence BNPL adoption and impulsive buying trends over time. Exploring cross-cultural variations in BNPL usage could further enrich the understanding of its impact on consumer behavior globally.
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    Impact of Buy Now, Pay Later (BNPL) Options on The Purchase Decision on E-Commerce Platforms in Western Province of Sri Lanka
    (Department of Marketing Management, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) De Alwis, W. C. S.; Udara, S. W. I.
    This study explores how Buy Now, Pay Later (BNPL) choices affect consumer purchasing intentions in the e-commerce sector, with a focus on Sri Lanka's Western Province. The study is prompted by the increasing use of BNPL services in emerging economies, where traditional credit is typically scarce. Despite BNPL's increasing global popularity, a considerable gap exists in understanding its implications for consumer behaviour, particularly in developing countries. This study fills a vacuum by studying the relationship between BNPL services and consumer purchasing decisions, focusing on four major factors: customer perceived value, promotional techniques, consumer financial literacy, and ease of use. By investigating these variables, the study seeks to provide insights into how BNPL options influence purchasing behaviours and contribute to the broader e-commerce landscape in Sri Lanka. The study uses a quantitative research design to comprehensively investigate the effects of BNPL alternatives. To guarantee inclusion, data were collected from 346 participants using standardised questionnaires available in both Sinhala and English languages. These questionnaires included demographic questions and measures that used Likert-scale responses to assess perceptions of BNPL services. The study used statistical tools such as descriptive analysis, correlation analysis, and regression modelling to determine relationships between the independent variables: customer perceived value, promotional strategies, financial literacy, ease of use and the dependent variable purchase intention. The study's findings provide several important insights. First, customer perceived value appeared to be a major factor in purchase intention, emphasising the significance of consumers' perceptions of BNPL as a useful financial tool. Second, promotional methods were determined as the most influential of the four variables. Targeted advertising, such as discounts or installment benefits linked to BNPL possibilities, have been demonstrated to dramatically increase consumer desire to use BNPL and make purchases. Third, consumer financial knowledge was important, as people with higher financial literacy levels were better able to navigate BNPL terms, resulting in more confident purchasing decisions. Finally, ease of use, while important, had a less extensive link with purchase intentions than the other characteristics. This implies that while user-friendly interfaces and smooth integration of BNPL alternatives are significant, they may not have the same impact on consumer behaviour as promotional methods or financial knowledge. These findings align with previous research highlighting the importance of flexible payment alternatives and financial awareness in changing customer behaviour. The findings support all four assumptions, demonstrating that BNPL services can greatly influence consumer purchase intentions by providing ease and affordability. Furthermore, the study emphasises the importance of promotional methods as a main driver of customer engagement, implying that e-commerce platforms might use targeted marketing campaigns to increase acceptance of BNPL services. By addressing financial literacy, the study underlines the importance of consumer education activities to reduce problems related to BNPL use, including over-indebtedness and impulsive purchasing. The study's consequences are theoretical and practical. From a theoretical standpoint, the study adds to the expanding body of information about consumer behaviour and digital payment systems by combining ideas from the Technology Acceptance Model (TAM) and the Theory of Planned Behaviour. These concepts provide a solid foundation for studying the psychological and behavioural dynamics that drive BNPL uptake. The findings provide actionable advice to stakeholders such as e-commerce platforms, BNPL providers, and legislators. To increase consumer trust, e-commerce platforms should improve the transparency of their BNPL offers, such as repayment schedules and interest rates. Targeted advertising activities can boost the desirability of BNPL choices, especially during peak shopping periods or holiday seasons. BNPL providers are urged to work with educational institutions and financial organisations to promote financial literacy, ensuring that consumers understand the possible risks and benefits of deferred payment plans. Policymakers can use the study’s findings to develop regulatory frameworks that safeguard consumer interests while fostering innovation in digital payment systems. For instance, regulations could mandate clearer disclosure of BNPL terms and implement safeguards against predatory lending practices. The study admits a few shortcomings despite its contributions. The study's conclusions may not be as applicable to other areas or nations with distinct cultural and economic contexts due to its geographic confinement to Sri Lanka's Western Province. Future research might also look at the impact of BNPL on certain demographic groups, such as low-income people, the elderly, or specific professional categories, to gain a more comprehensive understanding of its influence.
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    The Effect of Financial Literacy on Firm Performance Through Mediation of Financial Access and Financial Risk Attitude: Evidence from Selected Trading MSME in Ratnapura District
    (Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Witharama, Y. W. K. M.; Weligamage, S. S.
    Introduction: Micro, Small and Medium Enterprises (MSMEs) are important players in economic development as they provide employment and contribute significantly to the GDP of both developed and developing nations. MSMEs face challenges such as limited financial literacy, limited access to financing and poor risk management skills which at the end results in financial failure of the business. Entrepreneurs who can manage their firms more effectively and make informed decisions have access to increased resources and are more effective at managing risks. This study examines the Effect of Financial Literacy on Firm Performance Through Financial Access and Financial Risk Attitude as Mediators. Methodology: This quantitative and deductive approach was followed, by the positivism philosophy, in an attempt to examine the research problem logically. Primary data were collected from 150 MSMEs using structured questionnaires. Descriptive statistics, correlation analysis, and mediation analysis were conducted using SPSS to evaluate the hypothesized relationships among financial literacy, financial access, financial risk attitude, and firm performance. Findings: The findings indicate a strong positive relationship between the financial literacy of the MSMEs and their performance. Financial literacy was found to have a direct effect on performance and improved the ability to acquire financial resources and positive risk attitudes, which came as partial mediators. MSMEs with more financial knowledge found it easier to obtain funds, manage risks, and deal with market changes and thus made better performance. Conclusion: The analysis demonstrates that targeted policy measures and educational programs on financial literacy should be incorporated into the agenda of MSME owners’ empowerment. Statistics reveal that with better information, entrepreneurs’ judgment is clear, resources are allocated better, and complex financial networks are exploited. Making finance available through efficient and uncomplicated lending and customized financial aid is critical to sustaining liquidity and fostering growth. Also, constructive risk attitudes allow MSME owners to embrace risks and mitigate uncertainties with confidence. These actions are important for establishing a nurturing environment that guarantees the viability and growth of micro, small and medium enterprises in developing countries.
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    The Effect of Financial Literacy on Firm Performance through Mediation of Financial Access and Financial Risk Attitude: Evidence from Selected Service MSME in Rathnapura
    (Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Sugathadasa, B. V. S. N.; Weligamage, S. S.
    Introduction: This study examines how the literacy of businesses in the service sector in the Ratnapura District, Sri Lanka can be related to their performance. Micro, Small and medium-sized enterprises are the engine of the economy and the main providers of jobs, but they face such difficulties as financial management that is not enough and the difficulty in accessing financial resources. Through the use of financial risk attitude, the research gives financial access golden to the mediating roles and it analyses the connection between financial literacy and MSME performance. This study pursues the gaps found in the current literature and gives real-time advice on how the performance of the MSME in the region can be enhanced. Methodology: The study engaged in the quantitative methodology which included the participation of 168 MSME owners and managers from the service sector of the Ratnapura District. The data can be collected as structured questionnaire and analysis was done by using SPSS, a statistical software program. This strict methodology made it possible to derive conclusions that are statistically valid. The research passed through the very specified factors of production; these include; financial literacy, financial access, financial risk attitude, and MSME performance, in which the study placed its major focus on their interactions. Findings: The results demonstrate a clear, and statistically significant correlation between financial knowledge and MSME performance. At the same time, the research has brought out the mediating roles of both financial access and financial risk attitude in this relation. Besides, financial education not only grants a better access to fund, it also brings the creation of the strategy of investment and risk-taking among MSMEs' holders and managers. A calculated mindset, that is; a risk-taking oriented mindset, also creates a strong bond between business activity and excellence. The findings reveal the intricate relations between the performance of MSME, the financial literacy of the individuals, their access to money and of course, their risk-taking approach in the field of maintenance of the infrastructure. Conclusion: This study is beneficial in comprehending the impacts of financial knowledge on the MSME performances in Ratnapura in particular. Consequently, the report underlines the necessity of financial literacy programs with focus subjects and development of special financial instruments for accuracy in satisfying the effects of MSME owners. There is the potential for growth and sustainability for the targeted regions with the guidance of policymakers and financial institutions. Through addressing some of the research open ends, the study presents options for feasible recommendations for MSMEs' prosperity in the service sector that are also valuable to researchers.
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    Financial Literacy and Credit Choice of Consumer Credit Users in Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Lasantha, S.A.R.; Pathirawasam, C.
    Financial literacy of individuals matters in credit decisions specially when choosing among different credit alternatives. This study investigates the financial literacy level of consumer credit users in Sri Lanka and their credit choice. For this purpose primary data was collected from 445 individuals using a survey instrument. Individuals have displayed a moderate level of financial literacy and it is found that there is no significant difference between the financial literacy levels of males and females. Despite the financial literacy level, most individuals have resorted to high cost credit cards compared to low cost bank borrowings. This may imply a behavior that deviate from the rationality. It demands further research to determine the possible factors affecting the deviation from rationality. Further this research finds that individuals below the age of 25 have lower financial literacy level. It may imply that they are susceptible to higher credit related risks.