A design-science framework for institutional governance in cryptocurrency-collateralized BNPL in emerging markets

This study develops a design-science framework for cryptocurrency-collateralized Buy Now, Pay Later (BNPL) services in emerging markets, addressing credit exclusion among digital asset holders who lack access to conventional financial products. Despite holding valuable cryptocurrency assets, millions in emerging economies remain excluded from traditional lending due to incomplete credit histories – a paradox this research seeks to resolve. Drawing on the Resource-Based View, Stakeholder Theory, and Institutional Theory, the framework demonstrates how crypto-BNPL viability emerges from interactions among firm-level capabilities, multi-stakeholder coordination, and institutional governance. Using Thailand as an empirical context, the study employs a mixed-methods design combining qualitative stakeholder interviews with regulators, fintech providers, merchants, and users, alongside quantitative calibration of cryptocurrency risk parameters. Findings reveal three key insights: internal capabilities prove necessary but insufficient without institutional legitimacy; simultaneous – rather than sequential – stakeholder integration determines platform viability; and institutional governance moderates the relationship between capabilities and stakeholder acceptance, enabling innovation within regulatory constraints. The framework demonstrates how emerging markets can leverage cryptocurrency collateral to advance financial inclusion while maintaining institutional legitimacy, offering actionable guidance for fintech design, regulatory experimentation, and future empirical validation. This study proposes an innovative cryptocurrency-collateralized Buy-Now-Pay-Later (BNPL) framework designed to improve risk management and financial inclusion in emerging fintech markets. By integrating blockchain-based collateral mechanisms with structured risk parameters and stakeholder-driven design science methodology, the research demonstrates how alternative digital assets can mitigate credit risk while expanding access to financing for underbanked populations. The findings contribute to the fintech and sustainable finance literature by presenting a practical governance and risk-control model for hybrid lending systems. The proposed framework provides policymakers, financial institutions, and fintech platforms with a viable pathway to develop more resilient, transparent, and inclusive digital credit ecosystems.