BEHIND THE RISE OF PAYLATER: INNOVATION MEETS FINANCIAL RISK

Abstract

The objective of this study is to analyze the role of paylater services as a financial innovation, focusing on their growth, benefits, and the emerging risks they pose. This research employs a literature review approach, utilizing published academic sources, industry analyses, and regulatory frameworks. The findings reveal that although paylater systems enhance purchasing convenience and promote financial inclusion, they also raise concerns regarding consumer overspending, repayment defaults, and insufficient regulatory clarity. A limitation of this research is that it does not involve primary data collection or real-time consumer insights. The results of this study are relevant for stakeholders in the areas of financial technology, digital
consumer behavior, and policy development in the digital economy