Leveraging Digital Tools: Fintech and Buy Now, Pay Later (BNPL) for Social Impact and Responsibility

This chapter explores the dynamic financial technology environment and its social context, which explicitly highlights the transformative potential as well as issues concerning buy now, pay later (BNPL) services in the financial technology ecosystem. This chapter discusses the advantages of BNPL, such as improved financial accessibility and its distinctive features, by considering the potential drawbacks, such as long-term debt that potentially leads to financial stress for the individual, affects emotion and social relationships, and burdens society, businesses, and the government. Models for leveraging BNPL for social impact are discussed, which feature partnership models among Fintech companies, non-governmental organizations (NGOs), and social enterprises, and innovative use of data and technology to achieve positive community development outcomes. The chapter also addresses the dilemma of managing the accelerated growth of BNPL with ethical practice and predicts the evolving regulatory and ethical landscape that will shape the future of BNPL. This chapter concludes with actionable recommendations, which encourage the development of cooperation, promote financial literacy, and guarantee environmentally sustainable practices to maximize the social benefits of BNPL services in the Fintech sector.