The Frictionless Factor: A Study on BNPL Usage and Impulse Buying Effect Among University Students in Borneo

The digitization of financial services has fundamentally altered the consumption patterns of young adults, introducing a paradigm of "frictionless" commerce that decouples the act of purchasing from the immediate psychological pain of payment. This research article presents an exhaustive examination of the Buy Now, Pay Later (BNPL) phenomenon among university students in the Malaysian Borneo states of Sabah and Sarawak. Grounded in the theoretical frameworks of Behavioral Economics— specifically the "Pain of Paying" hypothesis—and the Unified Theory of Acceptance and Use of Technology (UTAUT), this study investigates how the seamless user interfaces of platforms like ShopeePay Later, Grab PayLater, and Atome drive impulse buying behaviors. Furthermore, this report critically analyzes these trends through the lens of Responsible Islamic Finance, evaluating the alignment of BNPL practices with Maqasid al-Shariah (objectives of Shariah), particularly regarding Israf (extravagance), Gharar (uncertainty), and the preservation of Mal (wealth). The findings underscore a critical paradox: while BNPL fosters financial inclusion in digitally underserved regions like Borneo, its current frictionless design capitalizes on cognitive biases to precipitate debt accumulation among the youth. The study concludes with policy recommendations for the implementation of the Consumer Credit Act 2025 and the development of "ethical friction" in Islamic Fintech interfaces.