Chen TMarshall BRNguyen NHVisaltanachoti N2024-07-292024-07-292024-09Chen T, Marshall BR, Nguyen NH, Visaltanachoti N. (2024). What influences demand for Buy Now, Pay Later credit?. Economics Letters. 242.0165-1765https://mro.massey.ac.nz/handle/10179/71131We investigate the determinants of demand for Buy Now, Pay Later (BNPL) credit using a comprehensive database from New Zealand. We consider both absolute demand and relative to total personal lending demand. The results indicate that BNPL is more popular with single individuals, younger people, and those on lower incomes. There is a negative relation between absolute and relative BNPL demand and interest rates. BNPL demand was reduced during the period around responsible lending legislation changes, even though these were not specifically related to BNPL, while demand increased following the end of COVID-19 lockdowns.(c) 2024 The Author/sCC BY 4.0https://creativecommons.org/licenses/by/4.0/Buy NowPay LaterPersonal lendingJournal article10.1016/j.econlet.2024.1118571873-7374journal-article111857S0165176524003410