Exploring Platform Trust, Borrowing Intention, and Actual Use of PayLater Services in Indonesia and Malaysia

Abstract

This study explores how system-based and cognitive-based factors affect platform trust and its role in the actual use of PayLater services (buy now, pay later or BNPL) in Indonesia and Malaysia. PayLater, a fintech innovation, provides fast and convenient payment options through online platforms. By incorporating platform trust into the technology acceptance model (TAM), the research investigates whether borrowing intention acts as a mediator between platform trust and actual usage. Utilizing a quantitative approach with purposive sampling, data were gathered from 106 respondents in Indonesia and 169 in Malaysia, with 62 and 85 respondents meeting the criteria, respectively. Partial least squares (PLS) analysis indicates notable differences in how Indonesian and Malaysian users perceive platform trust, while the effect of platform trust on borrowing intention remains consistent across both nations. Borrowing intention emerges as a crucial factor influencing the actual use of PayLater services. The results offer important insights into the adoption of fintech services in emerging markets, highlighting the significance of platform trust in shaping user behavior. This research provides practical suggestions for fintech providers to improve platform trust and user engagement in cross-country scenarios.

BNPL Short-Term Repayment Risk

“…A second line of BNPL research focuses on adoption drivers and user-side behavioral mechanisms. For example, recent studies highlight the roles of sustainability narratives, platform trust, and behavioral intention in explaining why consumers adopt BNPL services in different institutional settings (Abed and Alkadi, 2024;Pertiwi et al, 2025). Other work emphasizes time inconsistency, social norms, and the psychological foundations of BNPL use (Cheng and Huo, 2025;Ackert et al, 2025).…”

BNPL Short-Term Repayment Risk

“…A second line of BNPL research focuses on adoption drivers and user-side behavioral mechanisms. For example, recent studies highlight the roles of sustainability narratives, platform trust, and behavioral intention in explaining why consumers adopt BNPL services in different institutional settings (Abed and Alkadi, 2024;Pertiwi et al, 2025). Other work emphasizes time inconsistency, social norms, and the psychological foundations of BNPL use (Cheng and Huo, 2025;Ackert et al, 2025).…”

BNPL Short-Term Repayment Risk

“…A second line of BNPL research focuses on adoption drivers and user-side behavioral mechanisms. For example, recent studies highlight the roles of sustainability narratives, platform trust, and behavioral intention in explaining why consumers adopt BNPL services in different institutional settings (Abed and Alkadi, 2024;Pertiwi et al, 2025). Other work emphasizes time inconsistency, social norms, and the psychological foundations of BNPL use (Cheng and Huo, 2025;Ackert et al, 2025).…”

BNPL Short-Term Repayment Risk

“…A second line of BNPL research focuses on adoption drivers and user-side behavioral mechanisms. For example, recent studies highlight the roles of sustainability narratives, platform trust, and behavioral intention in explaining why consumers adopt BNPL services in different institutional settings (Abed and Alkadi, 2024;Pertiwi et al, 2025). Other work emphasizes time inconsistency, social norms, and the psychological foundations of BNPL use (Cheng and Huo, 2025;Ackert et al, 2025).…”