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Research Article | DOI: https://doi.org/INNR-RA-25-002

A 12-Month Longitudinal Study of Bnpl Usage Patterns and Their Impact on Financial Well-Being and Academic Performance Among Tertiary Students in Chandigarh, Punjab

Eric Kwasi Elliason , Atul Khajuria

1 Research Fellow, Faculty of Allied Health Sciences, Desh Bhagat University, India 

2 Director, Faculty of Allied Health Sciences, Desh Bhagat University, India

*Corresponding Author: Eric Kwasi Elliason, Research Fellow, Faculty of Allied Health Sciences, Desh Bhagat University, India

Citation: Eric Kwasi Elliason, Atul Khajuria (2025). A 12-Month Longitudinal Study of Bnpl Usage Patterns and Their Impact on Financial Well-Being and Academic Performance Among Tertiary Students in Chandigarh, Punjab, J International Neurology and Neurological Research. 1(1) 02, DOI: INNR-RA-25-002.

Copyright: Eric Kwasi Elliason, et al © (2025). This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Received: 06 May 2025 | Accepted: 20 May 2025 | Published: 31 May 2025

Keywords: buy now pay later; tertiary students; financial stress; academic performance; digital lending; longitudinal study; chandigarh

Abstract

Background: The expansion of the Buy Now Pay Later (BNPL) market in India's digital economy has led to new financial distress for tertiary students, especially in education towns, such as Chandigarh in Punjab. This study explores the 12-month financial pathways of BNPL use in young university students with respect to patterns of debt accumulation, psychological well-being and academic outcomes. And as digital lending becomes more pervasive for students who lack of the traditional sources of income, some are worried how it is affecting financial health and educational success in this vulnerable population.

Methods: A longitudinal cohort study of 400 tertiary students from universities in Chandigarh based on stratified random sampling by discipline and year of study were followed. Participants submitted bimonthly surveys that measure BNPL use, along with conscious spending, financial stress (with the use of the Financial Anxiety Scale), well-being (DASS-21), and academic performance indicators. Consented BNPL app linkages were used to gather actual spending data. Multilevel model was utilized to analyze the debt growth trajectory and mediation analysis was conducted to test the psychological (excessive borrowing) and academic (progress to graduation with debt) influences.

Results: The study found three major outcomes: 72% of the respondents used BNPL services commonly, and the average monthly debt rose from ₹2, 850 (Month 1) to ₹8, 120 (Month 12). Second, high BNPL reliance (≥4 transactions/month) was significantly associated with higher financial anxiety (r = 0.61, p < 0.01) and depressive symptoms (β = 0.43, p < 0.001). Third, those who continuously used BNPL had significantly lower GPAs (Δ =-0.38, p <0.05) compared to the occasional users. The mediation model accounted for 41% of the variance in academic performance by financial stress.

Conclusion:

This study highlights that BNPL offerings can have potentially disastrous implications for the financial well-being and academic success of university students in Chandigarh. The findings highlight the importance of the development of a financial literacy program in any institution, legislation of responsible lending to student populations, among other targeted mental health support. Subsequent study should investigate effective interventions to minimize these risks and retain the benefits of digital financial inclusion.

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