Riding the wave of change: Buy now, pay later as a disruptive threat to payment cards in the global market

This paper studies changes in the worldwide payment system by examining the growing popu- larity of buy now, pay later (BNPL). Considering variables related to individual financial per- sonality and socio-demographic traits, we provide an original dataset to investigate whether BNPL could be a valid substitute for the use of payment cards. The results show that the payment card sector should take BNPL seriously as a competitive challenge. The developments of the COVID-19 pandemic suggest a possible change from the usage of payment cards towards BNPL, similar to what happened with cash transactions. This research contributes to the literature on the topic by proposing fresh ideas for payment methods and the financial sector, which continue to evolve in response to consumer needs