EXAMINING MALAYSIAN CONSUMERS’ ACCEPTANCE OF SHARIAH-COMPLIANT BUY NOW PAY LATER USING THE UTAUT MODEL
DOI:
https://doi.org/10.55197/qjssh.v7si4.1576Keywords:
Shariah-compliant, buy now pay later, UTAUT, Islamic fintechAbstract
The rapid growth of financial technology has transformed consumer payment behaviour, including the emergence of Buy Now Pay Later (BNPL) services. In Malaysia, the increasing demand for Shariah-compliant financial solutions has encouraged financial service providers to introduce Shariah-compliant BNPL services as an alternative payment method for Muslim consumers. Despite the growing popularity of BNPL services, studies examining Malaysian consumers’ acceptance of Shariah-compliant BNPL remain limited. Therefore, this study examines the factors influencing Malaysian consumers’ acceptance of Shariah-compliant BNPL services using the Unified Theory of Acceptance and Use of Technology (UTAUT) model. Specifically, the study investigates the influence of performance expectancy, effort expectancy and social influence on behavioural intention towards Shariah-compliant BNPL services. A quantitative research design was employed, and data were collected through a structured questionnaire distributed among Malaysian consumers who were familiar with or had experience using Shariah-compliant BNPL services. The collected data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) through SmartPLS software. The findings revealed that performance expectancy and social influence significantly influenced behavioural intention towards Shariah-compliant BNPL services, while effort expectancy showed a weaker relationship. The study contributes to the growing literature on Islamic fintech adoption by extending the application of the UTAUT model in the context of Shariah-compliant BNPL services in Malaysia. The findings provide practical insights for Islamic financial institutions, fintech providers and policymakers in developing strategies to improve consumer acceptance and encourage the adoption of ethical and Shariah-compliant financial solutions.
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