Pay Later System and Students Impulsive Buying: Islamic Perspective in the Digital Era

Abstract

The study's goal is to examine the influence of pay-later payment systems on student impulsive purchase behavior in the digital era, with a particular emphasis on the Islamic viewpoint. Increased usage of technology and electronic payment methods, such as pay later, has sped up online purchasing transactions, which can influence customer behavior, especially impulse purchases. The study collects data from students who utilize the Pay Later system to perform online retail transactions using qualitative and quantitative research approaches. Furthermore, the study was conducted by Islamic economic principles, which promote fairness, honesty, and responsible transactions. According to the findings of the study, the usage of pay-later systems can enhance students' impulsive purchase behavior. Transactional simplicity and enticing discount offers might lead to hasty purchase decisions. However, it was discovered that several actions in the pay later system may be inconsistent with Islamic economic ethical standards. This study provides in-depth insight into how pay-later payment systems impact student spending behavior and serves as a foundation for developing policy recommendations to encourage the establishment of payment systems based on Islamic principles. In the context of an ever-expanding digital economy, it is critical to encourage responsible consumerism and moral values.