How mindfulness boosts overall well-being: An empirical study of buy-now-pay-later services

Abstract

This study was implemented to examine how mindfulness affects overall well-being in the context of using Buy-Now-Pay-Later services. We evaluate the assumptions of a theoretical structure grounded in the existing literature using partial least squares structural equation modeling on an approximately representative sample of university students and alumni, which are 612 respondents. PLS-SEM was conducted and the results showed that mindfulness can influence BNPL usage indirectly through its effects on impulse buying tendencies and financial self-control. Meanwhile, BNPL usage mediates current money management stress and expected future financial security. Additionally, mindfulness negatively influences materialism, which, in turn, affects current money management stress and overall well-being. The findings of this study have provided significant contributions to both theoretical aspects and practical aspects. The research offers a comprehensive framework, incorporating BNPL usage, mindfulness, and subjective well-being, and introduces new pathways and mediating factors. Practically, this research informs policymakers about the impacts of BNPL services, aids financial counselors in designing interventions, and highlights the responsibility of businesses to ensure customers can afford BNPL. However, limitations are unavoidable. This research mainly focused on youth in Ho Chi Minh City, lacking diversity. Additionally, the underdeveloped BNPL market in Vietnam limits consumer understanding, making regulatory suggestions theoretical. External factors like financial literacy and socialization, crucial in financial decision-making, were not adequately addressed. Finally, our group’s suggestions include encouraging companies that provide BNPL service to adopt instant messaging for awareness and advising retailers to make BNPL payment procedures more mindful to prevent reputational harm.