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FOREIGN TRADE UNIVERSITY HCMC CAMPUS

DEPARTMENT OF ECONOMICS AND LAW
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RESEARCH METHODOLOGY
TOPIC: THE EFFECT OF SHOPEE PAYLATER ON FOREIGN TRADE
UNIVERSITY’S UNDERGRADUATES (HO CHI MINH CITY CAMPUS)
CONSUMPTION BEHAVIOR.
Student : Liêu Gia Khang - 2315115017
Trần Trung Tín - 2312155198
Trần Trung kiên - 2313155005
Nguyễn Hùng Phát - 2313155008
Nguyễn Hùng Sơn - 2313155010
Class : K62CLC8
Classcode : KTEE206 - ML237
Teacher : Ph.D. Lê Hằng Mỹ Hạnh

Ho Chi Minh City, 25th June 2024

EFFECLATER

TABLE OF CONTENTS

TABLE OF CONTENTS..............................................................................................2
ABSTRACT...................................................................................................................4
I. INTRODUCTION.....................................................................................................5
1. Overview of Shopee and its services.......................................................................5
2. Introduction to Shopee PayLater.............................................................................6
3. To analyze the effects of Shopee PayLater on student consumption behavior........7
4. Aim and Scope of the study.....................................................................................9
4.1. Aim of the study................................................................................................9
4.2 Scope of the study...............................................................................................9
II. LITERATURE REVIEW........................................................................................9
A. Financial behavior and consumption patterns of university university university
university students.......................................................................................................9
1. General spending habits and factors influencing student purchases........................9
1.1. General spending habits.....................................................................................9
1.2. Factors influencing student purchases............................................................11
2. Several theories and frameworks related to general spending habits..................12
2.1. Social comparison theory................................................................................12
2.2 Consumer Behavior Theory..............................................................................13
B. Buy Now, Pay Later (BNPL) services..................................................................14
1. Definition and history............................................................................................14
2. Popularity and growth of BNPL services..............................................................15
3. SPayLater’s terms..................................................................................................16
3.1 Eligibility, Agreement, and Using SPayLater..................................................16
3.2. Financial aspects..............................................................................................17
3.2.1 Processing Fee...............................................................................................17
3.2.2. Late Payment Fee.........................................................................................17
3.2.3. Responsibility for Fraudulent Activity.........................................................18
3.3. Payment Methods and Limitations..................................................................18
III. RESEARCH METHODOLOGY........................................................................18
1. Research model......................................................................................................18
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 2. Data collection method..........................................................................................19
3. Measurement scale.................................................................................................19
IV. FINDINGS.............................................................................................................19
TOTAL...................................................................................................................20
Minimum Payment.................................................................................................25
The volume of SPayLater Expenditures.................................................................25
V. DISCUSSION AND RECOMMENDATIONS....................................................27
A. Discussion.............................................................................................................27
1. Comparison with existing literature.......................................................................28
2. Unique insights from the current study..................................................................28
3. Conclusion.............................................................................................................28
B. Implications for university students......................................................................29
1. Financial health and academic performance..........................................................29
2. Long-term financial behavior................................................................................30
C. Policy and educational recommendations.............................................................31
1. Financial literacy programs....................................................................................31
2. Guidelines for responsible usage of BNPL services..............................................32
VI. TIMESCALE........................................................................................................33
VII. CONCLUSION....................................................................................................33
A. Summary of key findings......................................................................................33
B. Limitations of the study.........................................................................................33
1. Potential biases.......................................................................................................33
2. Scope and generalizability.....................................................................................34
C. Suggestions for future research.............................................................................36
1. Further exploration of long-term effects................................................................36
2. Comparative studies with other BNPL services....................................................36
2.1.Vietnam Buy Now Pay Later (BNPL) Services Market...................................36
2.2.Key BNPL partnerships in Vietnam.................................................................37
REFERENCES............................................................................................................39
APPENDIX..................................................................................................................43

HAVIOR

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 THE EFFECT OF SHOPEE PAYLATER ON FOREIGN TRADE
UNIVERSITY’S UNDERGRADUATES (HO CHI MINH CITY CAMPUS)
CONSUMPTION BEHAVIOR
LIEU GIA KHANG, TRAN TRUNG TIN, TRAN TRUNG KIEN, NGUYEN HUNG
SON, NGUYEN HUNG PHAT
Foreign Trade University HCMC Campus

ABSTRACT
Today, the extension of financial technology services paved way for the innovation of
payment services such as the Shopee’s SPayLater, especially among university
students. SPayLater changes the general tendency of spending from the customer’s
perspective since they can make purchases without paying for them immediately. The
project specifically aims at investigating the impact of SPayLater on buying behavior
of university students through a cross-sectional online survey.
The questions and the overall design of the survey was concerned with understanding
the effect of SPayLater on the number and size of purchases made by students, as well
as their financial behaviors. As pointed out by the findings of the study, one striking
fact from our survey reveals that only a third of the student population actively
engages with SPayLater services, despite a broad base of awareness as most have
encountered it. This discrepancy points to a discerning use of SPayLater, potentially
indicative of a broader hesitancy to commit to financial obligations without upfront
payment or a reflection of prudent financial self-awareness among students. Besides,
understanding the causes of impulsive purchasing will help minimize the potentially
adverse effects these behaviors can have on financial health and personal well-being.
Therefore, empowering university students with the adequate know-how to navigate
the intricacies of digital financial services responsibly is paramount.
In order to provide more of an understanding of the effects that Fintech services such
as Shopee’s SPayLater have on its customers at Foreign Trade University (HCMC
campus), a good and sound research method was used in conducting this paper.
However, to achieve an extensive understanding of the different ways students utilize
and perceive SPayLater services, we employed an online survey approach. This survey

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adopted a Likert scale to ensure the identification of the degree and intensity of
satisfaction of the students concerning the spending habits as well as the frequency of
usage or relevance of SPayLater in their daily money management practices.
The utilization of the Likert scale within our questionnaire allowed us to measure the
degree to which students agreed or disagreed with a series of statements pertaining to
impulsivity in purchasing, financial awareness, and perceptions of buy now, pay later
schemes. This approach provided nuanced insights into the psychological and
behavioral impacts of SPayLater, facilitating an exhaustive analysis of student
consumer behavior.

I. INTRODUCTION

1. Overview of Shopee and its services

Shopee, inaugurated in the year 2015 by Sea Group, functions as an e-commerce

platform of consiile-centric strategy that aligns with the escalating proliferation of
smartphones among the populace. The platform in question delivers an easily
navigable, user-friendly interface, which has considerable appeal to a broad spectrum
of consumers, proffering an extensive variety of merchandise encompassing
electronics, fashion, home essentials, beauty items, adorable influence within the
Southeast Asian region. Possessing its central office in the city-state of Singapore,
Shopee has, with remarkable speed, escalated to a prominent status in the domain of e-
commerce within the said region, effectively utilizing a mobnd various other
categories.

The accomplishments realized by Shopee may be ascribed to its forward-thinking

methodology towards e-commerce, which amalgamates elements such as live-
streaming functionalities, in-application games, and a substantial social sharing
component that augments user interaction and fosters a shopping environment driven
by community engagement. Additionally, the platform’s incorporation of secure
payment mechanisms along with a dependable logistics framework further bolsters
consumer confidence and satisfaction levels. Shopee Mall, an exclusively premium
segment within the application, guarantees authenticity and superior quality through

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collaborations with esteemed brands, thereby ensuring a warranty on the products
retailed therein.

In addition to the consumer-focused model it operates under, Shopee facilitates seller

activity through an array of tools and services aimed at streamlining operations. These
include the provision of data analytics, marketing support, and educational programs
oriented towards sellers, thereby assisting merchants in amplifying their reach and
performance on the platform. Shopee Express, Shopee's logistics division, plays an
important role in guaranteeing efficient delivery and handling, hence mitigating one of
the most significant challenges in e-commerce.

Shopee's commitment to technology innovation is demonstrated by its continual

attempts to develop and improve new features. The platform uses artificial intelligence
and machine learning technology to customize the shopping experience, including
personalized recommendations and promotional content based on individual customer
preferences.

Shopee's quick growth and regional significance have led to its expansion into a
number of countries, including Indonesia, Malaysia, Thailand, Vietnam, and the
Philippines. The platform's ability to adapt to different markets while retaining a
consistent brand identity has played an important role in its widespread success.
Shopee's dynamic and user-centric strategy is helping to alter the Southeast Asian e-
commerce scene.

2. Introduction to Shopee PayLater

On a global scale BNPL (Buy Now, Pay Later) is widely used on eCommerce
platforms, especially in many Asian countries (Bian, Cong, & Ji, 2023). According to
Vietnam Buy Now Pay Later Business Intelligence Report 2024, Vietnam's
expanding BNPL market shows no signs of slowing down in 2024. This expansion is
driven by a number of reasons, including a growing desire for spending among
Vietnamese consumers and a lack of widespread credit card use. Vietnam's BNPL
market is set to boom, with payouts predicted to rise 41.8% to $3.33 billion by 2024.
This significant growth trend is projected to persist in the long run. Shopee PayLater

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exemplifies this trend particularly in Southeast Asia. Shopee PayLater launched in
2020 is a financial service offered by Shopee that allows consumers to make flexible
payments while meeting the growing demand for convenient and accessible financial
solutions in online shopping.This service facilitates deferred payment options,
including full payment at a later date or installment plans, for Shopee purchases. This
intervention aims to improve the customer experience by expanding purchasing power
and offering greater financial flexibility.

This service is particularly beneficial for users who need to manage their cash flow
efficiently or want to spread the cost of larger purchases over a more manageable
period. By leveraging the convenience of Shopee PayLater, customers can enjoy the
freedom to shop for a wide range of products without immediate financial strain. The
service is integrated seamlessly into the Shopee app, making it easy for users to apply
for and use PayLater as a payment method.

Shopee PayLater operates on a straightforward premise: users can select the PayLater
option at checkout and choose a repayment plan that suits their financial situation. The
plans typically include options to pay in full at a later date or to split the payment into
several monthly installments. This flexibility helps users avoid the burden of large
one-time payments, making it easier to budget for expenses.

The introduction of Shopee PayLater aligns with Shopee’s broader strategy to enhance
customer satisfaction and loyalty by providing innovative financial solutions. It also
reflects a growing trend in the e-commerce industry, where buy now, pay later (BNPL)
services are becoming increasingly popular. These services cater to a diverse range of
consumers, from those with limited access to traditional credit facilities to tech-savvy
shoppers seeking greater convenience

3. To analyze the effects of Shopee PayLater on student consumption behavior

Shopee PayLater offers university students newfound flexibility in managing their

finances by deferring payments for online purchases. This convenience, however,
raises questions about its effects on spending habits, budgeting, debt accumulation,
financial literacy, savings behavior, peer influence, and the risk of default among

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undergraduates. Preliminary findings suggest that adopting Shopee PayLater leads to
increased spending on non-essential items and more impulse purchases. While the
service offers convenience, those attending universities may struggle with budgeting
challenges and debt accumulation, potentially impacting their long-term financial well-
being.

Furthermore, Shopee PayLater presents a double-edged sword regarding financial

literacy. While it offers a practical learning opportunity through managing credit, its
misuse may reinforce poor financial habits. Additionally, peer influence significantly
shapes university students' decisions to use Shopee PayLater, further influencing
consumption behavior and financial outcomes. These findings highlight the need for
targeted interventions to promote responsible borrowing, enhance financial literacy,
and foster prudent spending habits among undergraduates in the era of digital finance.

However, Shopee PayLater, as a BNPL service, presents positive implications for

student consumption behavior. It offers a convenient and flexible payment option,
allowing university students to defer payments for online purchases and manage their
cash flow more effectively. This can be particularly beneficial for those with irregular
income or limited financial resources, enabling them to make purchases without
immediate financial strain.

Moreover, Shopee PayLater promotes financial inclusion by providing access to online

shopping and digital transactions for university students who may not have access to
traditional banking services or credit cards. By removing these barriers, the service
expands financial access and participation among student populations, contributing to
broader financial inclusion efforts.

While Shopee PayLater offers undergraduates newfound flexibility in managing

finances by deferring payments for online purchases, its impact on their spending
habits remains unclear. This study aims to provide a scientific analysis of how Shopee
PayLater influences student consumption behavior.

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 4. Aim and Scope of the study

4.1. Aim of the study

This research aims to investigate the prevalence of Shopee Pay Later usage among
college and university undergraduates in Ho Chi Minh City, evaluate their awareness
and understanding of the terms and conditions of this financial service, and assess its
impact on their consumption patterns. By examining these aspects, the study seeks to
provide a comprehensive understanding of how Shopee Pay Later influences student
behavior and financial management.

4.2 Scope of the study

The scope of this research is to provide a focused examination of the impact of Shopee
Pay Later on the consumption behavior of young adults between 16 and 23 years old
over a condensed period of two months. Geographically, the research will be limited to
Foreign Trade University's undergraduates (Ho Chi Minh City Campus) to facilitate
timely data collection. In this study, we conduct research by a methodical approach,
where the investigation will specifically leverage an online survey as the primary tool
for data collection, to collect information about how often students use Shopee Pay
Later. The survey will ask specific questions to understand who is using this service
and how they are using it. This way, we will get clear and detailed information directly
from the users.

II. LITERATURE REVIEW

A. Financial behavior and consumption patterns of university university

university university students

1. General spending habits and factors influencing student purchases

1.1. General spending habits

Most university students today likely fall into Generation Z. Generation Z, born
around 1995, is unusual in that they are the first generation to have grown up with
pervasive digital communication technologies (Bassiouni & Hackley, 2014).
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Generation Z is a digitally native generation, which means that university students
nowadays have used technology since they were born. According to another research,
which reported that It is anticipated that Gen Z would make up around 40% of the
consumer market by 2020 (Muddassir Khada, 2021).

Nowadays, the purchasing trend of young adults is technology items, which are no
longer considered expensive products. This is accurate because no other generation has
early access to technology like Gen Z, with the frequency of technology use becoming
frequent and affecting the consumption habits of Millennials and Gen X (UNiDAYS,
2019). According to the Student Shopping Report 2018: US Edition survey, university
students tend to shop more when they are adults, 47% of students aged 20 and older
compared to 34% of students aged 18-19. In addition, the report also shows that
university students tend to shop both in person and online (with 69% saying they
combine both methods at least once a month) (Victoria Owen, 2020). Other product
categories include: clothing and accessories health and beauty products school supplies
books newspapers and magazines

One point to notice is that university students' purchasing habits are greatly impacted
by both their desired lifestyle and their social environment. They frequently find
themselves in social situations where adhering to group norms and expectations is
highly valued, particularly in the context of peer influence (Ece Armağan, 2013). Due
to peer pressure, they may prioritize spending on luxuries like technology, clothing,
and entertainment that are seen as status symbols and markers of group membership.

Having the newest smartphone or fashionable clothes, for example, may be interpreted
as a means of achieving approval and validation from others. Therefore, university
students are especially vulnerable to this kind of comparison and the ensuing spending
behavior in an academic setting, where peer contacts are common and significant.

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1.2. Factors influencing student purchases
Lifestyle aspirations play a crucial role in shaping consumption patterns. Many
university students are at a life stage where they are developing their identities and
exploring different lifestyle choices. Influences from social media, popular culture,
and advertisements portray a glamorous lifestyle that often involves high consumption
of discretionary items. These portrayals create an aspirational image that university
students strive to emulate, further driving their spending on non-essential goods.

Financial literacy, or the lack of financial understanding, plays a pivotal role in

determining how university students manage their money and make spending
decisions. According to research by Lusardi and Mitchell (2014), financial literacy
involves understanding basic financial concepts such as budgeting, saving, debt
management, and investment. University students with higher levels of financial
literacy are more likely to make informed decisions about their expenditures. They can
effectively distinguish between needs and wants, and plan for long-term financial
stability.

On the other hand, those with lower financial literacy may struggle with managing
their finances effectively. A study by Remund (2010) found that they might be more
prone to impulsive buying and may not fully understand the implications of their
spending habits, such as accruing debt or failing to save for future needs.

One thing that was addressed by Johnson and Sherraden (2007) in their research is that
university students who obtain financial assistance from their parents or work part-
time jobs normally get more pocket money. This surplus financial muscle can cause an
increase in the purchase of both basic and non-essential things. Nevertheless, how
these finances are sourced and how they are stable also affects the spending habits. For
instance, some studies conducted by Robb and Woodyard (2011) have shown
university students working with ‘irregular’ incomes being financially cautious.
Conversely, university students being continually helped might feel like buying greater
optional items.

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Marketing strategies are also a factor that contributes to purchase decisions. Marketing
strategies have a significant influence on the buying choices of undergraduates, who
usually operate under very tight budgets. Out of these techniques, things like sales
promotion offers and time-bound discounts tend to motivate purchases by learners
more. Besides that, there are also other marketing strategies such as discounts (which
can make expensive products more accessible to university students), and limited-time
offers (with the fear of abandonment). miss the opportunity to buy, this campaign is
especially effective when creating urgency and urge to buy (Inman, Peter, and
Raghubir, 1997), Seasonal and event discounts, and loyalty programs necessary (by
offering continuous incentives, the campaign will attract student purchases)

2. Several theories and frameworks related to general spending habits

2.1. Social comparison theory

Social comparison theory is a psychological concept that describes how we judge
ourselves by comparing ourselves to other people. Leon Festinger created this idea in
1954, based on the premise that we have a basic need to evaluate ourselves. In other
words, it can evaluate how we are doing by putting us in the comparison with others,
which is a handy way to get the information (APA Dictionary of Psychology, 2018).
There are two main types of social comparisons: upward social comparison (happens
when we compare ourselves to those we are supposed to perform better) and
downward social comparison (happens when we compare ourselves to those we are
supposed to perform not as good as ourselves). In upward social comparison, the
feelings of inferiority and inadequacy can be promoted. In contrast, the sense of
feeling better about ourselves can be brought, on the other hand, it makes people
passive and avoid self-reflection, facing difficulties and improving shortcomings.

In the scope of researching university students' shopping trends, this theory leads to
the phenomenon of status and identity construction. University students tend to shop
and use consumer goods to position their status and build their identity. The latest
gadgets, trendy clothes or famous brands can serve as a means to achieve social

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acceptance and recognition. According to research by Podoshen and Andrzejewski
(2012), consumer culture is one of the foundations for building identity, especially for
young people, a group easily influenced by peers.

Also, the theory of social comparison facilitates peer influence and conformity
(meaning that peer influence is a major factor that can lead to conformity) in the
context of student purchasing behavior. Conformity to group norms and peer behaviors
can motivate university university university students to make purchases they might
otherwise avoid. Research by Bearden, Netemeyer, and Teel (1989) has shown that
peers influence significantly influences consumer purchasing decisions, especially in
contexts where membership and identity acceptance are important

2.2 Consumer Behavior Theory

Consumer Behavior Theory is used to address how users make their information
purchasing decisions through the models used to explain or predict. Through analyzing
and identifying factors that influence shopping decisions, shopping companies and
brands can devise proactive strategies to promote consumer behavior to create optimal
business. There are many factors that influence consumers' shopping behavior:
psychology (capturing this factor includes focusing on analyzing the buyer's beliefs,
motivations, and attitudes toward the product to optimize buying and selling), personal
characteristics (including characteristic factors such as age, gender, occupation,
culture, e.g.), social factors (including the influence of friends, family, communities
and organizations to which they belong) (Gray, Ryan, 2019).

Understanding the theory is crucial since it creates the framework so that university
students are more confident to be a shopee buyer. By following a series of well-
defined steps, consumers can minimize impulses by understanding the decision-
making process, the effects of peers’ behaviors and opinions, marketing awareness,
psychological factors and finally can make informed and rational choices.

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B. Buy Now, Pay Later (BNPL) services

1. Definition and history

“Buy Now, Pay Later” - or BNPL in short, is a financial service that allows consumers
to buy a product without paying the whole price at once. Instead, they will be able to
pay for the products in small portions, also known as installments. ( Akeredolu, N. et
al., 2021). When conducting BNPL, the timespan within which a customer is expected
to make the full payment can be in weeks, months and even years. Buy Now Pay Later
(BNPL) recently has become one of the popular innovations in the Fintech payment
sector which allows consumers to spread the cost of a product over a number of
months, generally, without interest. (Jose et al., 2024)

The original concept of BNPL can be traced back to the early 20th century in the form
of layaway programs and installment plans (The Evolution of Buy Now, Pay Later: A
Historical Perspective, 2024). Through layaway programs, buyers can reserve a
product by making a deposit and gradually paying the full amount before they can
eventually possess it (Dimitrov & Ceryan, 2018). Intrinsically, it is the concept of
breaking the total price of a product down to small portions so that customers can
afford huge purchases by spreading their payments over time through installments.
The concept of “Buy Now, Pay Later” as we know today perhaps began when
department stores implemented credit services such as the cases of Sears in 1985
(Sears’ Extraordinary History: A Timeline, 2018.) or Macy’s in 1989 (according to
Macy’s official webpage).

Since the 2010s and especially during the COVID-19 pandemic, there have been many
companies that offer point-of-sale installment lending on the market. Companies like
Affirm, Afterpay, and Klarna collaborate with firms and retailers globally to provide
flexible payment plans for customers. For example, the Swedish company Klarna has
over 400,000 merchants subscribed to the platform globally, as well as over 140
million customers (Yan, 2023). With Afterpay, the company has collaborated with
more than 6,500 retailers and provided services for over 21 million consumers in
America as of 2019 (Sng & Tan, 2021).

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 2. Popularity and growth of BNPL services
“Buy Now, Pay Later” services have significantly risen in popularity in recent years,
which fundamentally transforms consumer finance and retail landscapes. Such services
provide not only flexible payment options but also augmented spending power for
buyers. The striking growth of BNPL services can be associated with many factors,
including the COVID-19 pandemic, technology development and the services
themselves.

The global pandemic of COVID-19 has inarguably altered the landscapes of many
fields within our society. During the disastrous hiatus due to the virus, people were
unemployed, firms declared bankruptcy and life was harder than ever before. In such
times, still, one thing that seemed to remain relatively unaffected was the need for
people to buy things for themselves. For some, however, such a desire to make
purchases was hardly possible because of the severe economic conditions and financial
hardship that they experienced during the pandemic. Given that, BNPL services were
the most plausible approach for those who want to buy despite not having enough
money in their accounts. The flexibility and cost-effectiveness provided by BNPL
services attracted many customers who faced financial uncertainty during lockdowns.
(Bian et al., 2023). Through the “Buy Now, Pay Later” method, people were allowed
to pay in installments and sustain their purchase of a product. From this point onward,
usage of BNPL services has increased significantly during and post-pandemic.

Technological advancements in recent years have also greatly contributed to the

proliferation of BNPL services. During the COVID-19 pandemic, due to social
distancing, online shopping was the most plausible way to buy new items. And as
online shopping increased, so did the availability of BNPL services offered to
customers (Akana, 2022). Up to now, e-commerce platforms have always been an
ideal environment for the services of “Buy Now, Pay Later” to flourish. The increased
digital and technological integration has made BNPL become a more accessible,
efficient, and less time-consuming process. When purchasing a product, customers
will often be approved for a BNPL plan in seconds right at the checkouts without
dealing with the complexity of paperworks. Such convenience when making

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transactions perfectly embodies the effectiveness and efficiency of modern BNPL
applications, which perfectly match modern customers’ expectations. Additionally, the
enhanced and well-developed algorithms associated with modern BNPL applications
allow customers and retailers to keep track of the payment plan and payment progress.
This helps reflect financial transparency on both sides as well as remind buyers to pay
on time to avoid any additional fees.

By nature, what makes BNPL so popular are its simplicity and flexibility (Papich,
2022). Unlike traditional credit cards, which often come with high interest rates and
complex fee structures, BNPL services typically offer interest-free installments,
provided payments are made on time (Relja et al., 2023b). Such transparency and ease
of use have made BNPL an attractive option for consumers to avoid collecting debt.
Companies namely Afterpay, Klarna, and Affirm have pioneered the trend, as they
integrate their services into the online and in-store checkout processes of retailers. As a
result, the cooperation between “Buy Now, Pay Later” companies and retail firms
simplifies the payment process and enhances customer’s shopping experience
(Cardoso & Martinez, 2019).

3. SPayLater’s terms

3.1 Eligibility, Agreement, and Using SPayLater

As SPayLater users, people must be of legal age to participate and by using the
service, they agree to the TOS outlined by SeaMoney, the company providing
SPayLater. People need to keep in mind that SeaMoney reserves the right to modify
the service or terms at any time. It is the user's responsibility to stay updated on these
changes, as continued use signifies your acceptance and regularly checking the Shopee
platform or SeaMoney's website for updates is recommended.

SPayLater's terms and services state that the core function of SPayLater is to defer
payment for your purchases on Shopee or from participating merchants. It essentially
acts like a short-term loan, allowing users to receive items now and spread out the cost

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over time. The TOS (Terms of Service) clarifies that this service does not function as a
traditional loan or credit facility. When SPayLater is being used, SeaMoney actually
acts as the purchaser of the receivables from participating merchants. This means
SeaMoney pays the merchant upfront for purchases, and users then become obligated
to repay SeaMoney for the amount. However, SPayLater offers flexibility in
repayment. Users can choose a one-off payment for the entire purchase amount by the
due date provided in the monthly statement. Alternatively, they can opt for an
installment plan with a set monthly due date. The TOS specifies that SeaMoney may
offer various installment plans with different durations which can best suit different
budgets and repayment capability of users.

3.2. Financial aspects

In SPayLater’s TOS, regulations concerning the financial aspect of customers are
covered to emphasize consumers’ responsibilities and help reduce potential risks of
complications. Given that, the TOS of Shopee SPayLater mentions three main
elements regarding the financial feature of using the services: processing fee, late
payment fee, and responsibility for fraud or misconduct.

3.2.1 Processing Fee

Processing Fee is usually a percentage of the total purchase amount and is deducted
before users receive the funds for their purchase. Additionally, users should notice that
the fee is charged depending on the payment options. For example, if users opt for
"One-Off Payment", they will be charged a one-time fee. Similarly, when users choose
the "Installment Service" option, a fee will be applied each month for the entire
duration of their installment plan. Eventually, both cases mean that the actual amount
credited to users’ accounts will be lower than the total purchase price.

3.2.2. Late Payment Fee

Late Payment Fee refers to the fee to resume the account which was freezed before
due to the inability to pay. These fees are intended to cover the administrative and
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actual costs incurred by SeaMoney due to your delayed payment. Therefore, the Terms
of Service emphasizes the importance of making timely payments to avoid late
charges.

3.2.3. Responsibility for Fraudulent Activity

This term is strictly stated by SeaMoney to cover themselves and other users, other
third parties, and even users to prevent them incurring losses due financial losses
resulting from such activities. Some of the actions can be protecting participants by
limiting the account movement of the individuals who engage in such activities,
terminating/ freezing any existing transactions, or simply denying the individuals the
future ability to engage their services. It may also take a reasonable time to retain
users’ funds to follow illegal operations or legal procedures into the issue.

3.3. Payment Methods and Limitations

The Terms of Service allow you to make payment through four payment channels
including ShopeePay e-wallet, online banking, cash payment at 7-Eleven, or
debit/credit card. Some disclaimers and limitations which are warned to notice by
SeaMoney are crucial for users to understand. Furthermore, SeaMoney has already
stated that in the regard to quality and safety as well as the legal compliance of goods
and services obtained through Spaylater, they are not liable for this. In case that users
are not satisfied with the provided service, the remedy offered by the term is to delete
the account or even stop using it. The TOS also outlines a maximum liability amount
for SeaMoney in case of a dispute or gross negligence.

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 III. RESEARCH METHODOLOGY

1. Research model
The study aims to understand the consumption behavior when using SPayLater of
undergraduates in FTU2. To achieve this, we will measure five sets of variables. The
operation of the variables will be elaborated below:
1. Demographic: To better understand the respondents, some questions about
gender, year of study,... were asked
2. Using SPayLater or not: the respondents were asked if they signed up for
SPayLater.
3. Knowledge and attitudes toward SPayLater's features
4. Knowledge of the terms and conditions of SPayLater
5. SPayLater debt payment
6. The volume of SPayLater expenditures: to measure how much percent
expenditure the participants of SPayLater use compared to all their expenditures
on Shopee, the respondents were asked: “What is the volume of your SPayLater
wallet expenditures compared to all your expenditures on Shopee?”
7. SPayLater usage pattern

2. Data collection method

The questionnaire was distributed to the undergraduates through mail and messages.
The researchers received 102 responses in 4 days.

3. Measurement scale
The study will use a combination of a five-point scale (Likert) and multiple-choice
questions.

IV. FINDINGS
Demographic
Table 1 summarizes the demographic and socio-economic characteristics of 102
respondents. The analysis found that female comprises 60.8% of the respondents,
meanwhile, men’s is 39.2%. Of the total survey respondents, the main age is around
19
19-21 with 69.6%, which explains that 50% of undergraduates joining the study are
freshmen. The percentages of the monthly allowance/income are similar except for
“more than 10 million VND, which is about 30%, with the highest number being
42.2% of “2-5 million VND”.

Table 1: Demographic and Socio-Economic Characteristics of the Respondents

GENDER
Frequency Percent
Female 62 60.8%
Male 40 39.2%
TOTAL 102 100%
AGE
Frequency Percent
16-18 0 0%
19-21 71 69.6%
22-24 31 30.4%
TOTAL 102 100%
YEAR OF STUDY
Frequency Percent
First Year 51 50%
Second year 25 24.5%
Third year 21 20.6%
Fourth-year 3 4.9%
TOTAL 102 100%
AVERAGE MONTHLY ALLOWANCE/INCOME
Frequency Percent
Less than 2 million
24 23.5%
VND
2-5 million VND 43 42.2%
5-10 million VND 35 34.3%
20
 More than 10
0 0%
million VND
TOTAL 102 100%

Encounter and Usage of SPayLater

Tables 2 and 3 depict the percentage of the respondents encountering and using
SPayLater. 98% of the respondents heard about SPayLater but only 38.2% used it.

Table 2: Encounter of SPayLater

ENCOUNTER OF SPAYLATER
Frequency Percent
Yes 100 98%
No 2 2%
TOTAL 102 100%

Table 3: Usage of SPayLater

USAGE OF SPAYLATER
Frequency Percent
Yes 39 38.2%
No 63 61.8%
TOTAL 102 100%

Knowledge and attitudes toward SPayLater's features

Knowledge and attitudes toward SPayLater's features of the undergraduates of
Foreign Trade University (HCMC Campus) can be shown in Table 4. Overall, the
number shows that the respondents have a good knowledge of SPayLater, proving
their deep understanding and ability to use the app. Table 5 shows the attitudes of the
research’s subjects. It shows that they acknowledge the possibility of overspending
when using SPayLater with 76.47% agreeing. And they are more comfortable using
SPayLater when receiving education about how to use it (82.35% agree).

Table 4: Knowledge of SPayLater’s features

21
 Questions Scale

Ordinal Content 1 2 3 4 5
number (Strongly (Disagree) (Neutral) (Agree) (Strongly
disagree) agree)

1 SPayLater 0.98% 1.96% 7.84% 20.59% 68.63%

charges interest
on the entire
purchase amount
from the day of
purchase.

2 Using SPayLater 6.86% 44.12% 9.80% 34.31% 4.90%

can negatively
impact my credit
score if I miss
payments.

3 There are late 1.96% 1.96% 3.92% 14.71% 77.45%

fees associated
with missed
SPayLater
payments.

4 The maximum 65.69% 20.59% 11.76% 1.96% 0%

spending limit
for SPayLater
can be adjusted
based on my

22
 Questions Scale

Ordinal Content 1 2 3 4 5
number (Strongly (Disagree) (Neutral) (Agree) (Strongly
disagree) agree)

needs.

5 SPayLater can 0% 0% 5.88% 4.90% 89.22%

be used for
various bill
payments

Table 5: Attitudes toward SPayLater’s features

Statements Scale

Ordinal Content 1 2 3 4 5
numbers (Strongly (Disagree) (Neutral) (Agree) (Strongly
disagree) agree)

1 SPayLater is a 3.92% 52.94% 33.33% 7.84% 1.96%

helpful financial tool
that allows me to
manage my budget
better.

2 SPayLater 2.94% 10.78% 3.92% 30.39% 51.96%

23
 encourages me to
make impulse
purchases I wouldn't
normally make.

3 Using SPayLater 0.00% 2.94% 11.76% 76.47% 8.82%

makes it easier to
overspend and
accumulate debt.

4 I would be more 2.94% 1.96% 0.98% 82.35% 11.76%

comfortable using
SPayLater if I
received better
financial education
about it.

Knowledge about the Terms and Conditions of SPayLater

The population of the study spread roughly equally from do not have any
information to have all information. But the main one lies near do not have any or
have little (43.13%). Whereas having a lot of information or all information only takes
26.47%.

Table 6: Knowledge about the Terms and Conditions of SPayLater

Degree of
Frequency Percent
Information
I don’t have any
10
information 9.80%

I have a little
34
information 33.33%

I have some
31
information 30.39%

I have a lot of 18 17.65%

24
information

I have all information 9 8.82%

TOTAL 102 100%

SPayLater Debt Payment Preference

The majority of the subjects pay SPayLater completely (92.16%). Meanwhile,
the respondents paying minimum or partial payment only account for 7.84%.

Table 7: SPayLater Debt Payment Preference

SPayLater Debt
Frequency Percent
Payment Preference
Minimum Payment 3 2.94%

Partial Payment 5 4.90%

Complete Payment 94 92.16%

TOTAL 102 100%

The volume of SPayLater Expenditures

The majority of the respondents answered that they normally do not use
SPayLater much. Only 73.54% of them use SPayLater taking 0%-50% of their
expenditures. On the other hand, the percentage of them using SPayLater for more
than 50% of their expenditures is 26.46%.

Table 8: The volume of SPayLater Expenditures

Degree of
Frequency Percent
Information
0%-10% 15 14.71%

10%-20% 15 14.71%

20%-30% 22 21.57%

30%-40% 14 13.73%

40%-50% 9 8.82%

50%-60% 13 12.75%
25
 60%-70% 8 7.84%

70%-80% 5 4.90%

80%-90% 1 0.98%

90%- 100% 0 0.00%

TOTAL 102 100%

SPayLater Usage Pattern

With the “Grocery” tag, 52.94% of the respondents seldom use SPayLater, and
33.33% of them sometimes use it. The majority of them often or always use SPayLater
to buy clothes with 82.35%. 76.47% buy health and beauty products using SPayLater.
82.35% buy electronics using SPayLater. 94.12% never use SPayLater to buy Babies
& Kids. 100% never use SPayLater to buy Vehicles, Digital Products. With Home and
Living, the main study subjects sometimes use SPayLater (56.86%)
Table 9: SPayLater Usage Pattern

Statements Scale

Ordinal Content 1 2 3 4 5
numbers (Never) (Seldom) (Sometimes) (Often) (Always)

1 Grocery 3.92% 52.94% 33.33% 7.84% 1.96%

2 Fashion 2.94% 10.78% 3.92% 30.39% 51.96%

3 Health & Beauty 0.00% 2.94% 11.76% 76.47% 8.82%

4 Electronics 2.94% 1.96% 0.98% 82.35% 11.76%

5 Babies & Kids 94.12% 5.88% 0.00% 0.00% 0.00%

6 Vehicles 100% 0.00% 0.00% 0.00% 0.00%

7 Digital Products 100% 0.00% 0.00% 0.00% 0.00%

26
 8 Home & Living 34.31% 2.94% 56.86% 5.88% 0.00%

V. DISCUSSION AND RECOMMENDATIONS

A. Discussion
Researchers who study the effects of BNPL services on consumer behavior, especially
in young adults and Generation Z customers, are paying attention to how common
these services are becoming. Existing literature has emphasized the correlation
between BNPL services and increased consumer purchasing power, where services act
as a gateway to credit (Johnson, Rodwell, & Hendry, 2021)

1. Comparison with existing literature

The available literature on BNPL services, such as those offered by Afterpay and Zip
Pay, raises many concerns concerning their impact on consumer behavior. Liu, Li, and
Hu (2013) observed that because these services remove financial barriers at the
moment of sale, they tend to encourage impulsive purchases. This is consistent with
what we already know about BNPL services—that their instant gratification can
worsen impulsive buying tendencies (Rook, 1987).
Research by Goonetilleke's (n.d.) thesis on the financial well-being of young
Australian adults using BNPL services adds to this dialogue by indicating a significant
use among the youth demographic. The phenomenon suggests that BNPL services
might contribute to financial well-being or distress depending on the user's financial
literacy and control over spending.

2. Unique insights from the current study

Recent studies by Lia and Natswa (n.d.) focus on Generation Z's dilemma with
impulsive buying and overconsumption intention when using BNPL services. The

27
research expands upon existing literature by exploring the hedonic motivation behind
such purchases and providing empirical evidence that BNPL services may encourage
overconsumption, particularly among younger demographics who are digital natives
and more receptive to online shopping.
Lia and Natswa's findings offer a nuanced perspective on the topic, emphasizing the
role of technology in easing access to financial tools which were previously more
regulated like credit cards. Such convenience, while beneficial in many respects, poses
new challenges around financial literacy and responsible spending, echoing concerns
highlighted in Johnson, Rodwell, & Hendry (2021) and reinforcing the need for
consumer education on financial products.

3. Conclusion
In summary, the discussion of BNPL services and their implications draws from
existing literature, which has consistently shown a link between such services and
increased impulsive spending. The recent studies provide further context to this
understanding by focusing on Generation Z, thus offering unique insights into the age
group most susceptible to BNPL's appeal. These insights stress the importance of a
regulatory review and the need for greater financial literacy among consumers to
mitigate potential long-term financial risks.

B. Implications for university students

1. Financial health and academic performance

There has been a rise in the interaction with financial facilities in the course of the
years, primarily on credit facilities whereby university students have been granted
more accounts than before, specifically on the Paylater facilities where student
capacity to purchase more products has risen significantly. But they take credit at this
early age and in doing so it comes with adverse impacts on their financial standing and
hence performance at school. As indicated in research conducted by Norvilitis et al
(2006) it is possible that the high credit card debt level was making the poor scholars
perform poorly as a result of stress that emanates from such credit card debts. In
addition, the study done by Worthy, Jonkman and Blinn-Pike (2010) showed that since

28
there is poor financial, the learners end up submitting poor grades, drop-out rates are
high and few learners proceed with their education to the next level.
This talk examines the two-fold relationship claim documented in the analysis of the
impact that student credit makes on financial and academic performance. As it has
been mentioned at a humane level, it may be assumed that the lack of obvious negative
effects in early credit exposure might set the process of unequal credit service delivery
over the time, as well as stimulate the creation of a cycle of overspending and thus
reaching monetary instability (Robb, 2011). From the serials, which have been
explored in academia, support the hypothesis that growth is inversely proportional to
financial stress (Archuleta et al. , 2013). Also, credit responsibility during the early
period of adulthood continues with producing a progenitive cycle of cultivating
indebtedness that negates the ability to recognize dependability in financial matters
resulting in non-employability as an employee and further education (Prawitz et al. ,
2007).
Thus, in the conditions of growing detail and ambiguity of the offers, the academic
community called for the introduction of financial literacy as the curriculum to provide
the university students with a set of skills for solving the modern financial products’
issues (Danes and Haberman, 2007). The kind of educational intervention thrown into
place in such corporate environments is designed for the formation of consciousness
on credit usage amongst the university students to ensure that they are fully aware of
the pitfalls of over borrowing while at the same time making the most out of the
financial services available to them (Xiao et al. , 2014).
In conclusion therefore, it is impossible to overemphasize the importance and the
necessity of a holistic technical, systematic and political approach to the issue of
financial literacy. This means that any negative effects the university students might
experience as a result of credit crunch should be minimized through setting up a suite
of policies in educational institutions aimed at nurturing fiscally responsible citizens
who would be able to support their education without coming out of their way.

29
 2. Long-term financial behavior
Another area of research is also authoritative on one crucial notion that university
students who employ the services of deferred payment undergo a profound shift in
their financial behavioral pattern that is sustainable in the long-run. There is scientific
evidence to support the dual role of the same practices making their importance based
on the function that they serve as a communication function of organizations that is a
public relation function as well as the function they perform in establishing new forms
of relationships. First of all, they could encourage spiritual buying and develop credit
consciousness (and its impacts on credit scores) by Xiao et al. (2014). On the other
hand, if these services are being used in a negative way, then these turn to be the cause
of the deep financial unfavorable and act as a foundation for permanent debts and
various kinds of financial instability (Norvilitis et al. , 2006).

Feelings correlated with education as concerns of the described conflict are revealed as
the major response to the mentioned problem among the measures linked to the
defined conflict. Such pedagogical approaches seek to well prepare the learners with
knowledge on operating of the financial world such as on the interest rate fees, on the
terms of repayment and/or the vengeance of nobility in honor of financial
responsibilities (Shim et al., 2010). Actually any well developed and strong financial
education system has been described as very relevant in putting pressure on the young
adults into practicing good financial decisions, and therefore set the stage to finance a
sound future [Fernandes, Lynch, & Netemeyer, 2014].

Thus, there has been a need for the integration of financial literacy into the educational
delivery system of an institution. Thus, they can be ensured that university students
would approach credit and payment services being equipped with adequate skills as
well as the relevant knowledge. The provision of such knowledge is by no means an
exercise in academic scholarship; it is totally humane as something which these men’s
actual tangible economic realities and possible tangible future and existence
probabilities do involve.

30
 C. Policy and educational recommendations

1. Financial literacy programs

Because adding financial literacy as an important component of the curricula is a
proactive measure aimed at preventing people, and society in large, to be carried by
the tide of compound financial management issues of the 21st century, it is quite
appropriate to say so. That is to say, while credit and debit cards, and the increasingly
popular BNPL scheme, are being increasingly developed, their overemphasis on basic
lessons in financial economics can be avoided. According to Akeredolu, N. et al. , it is
the opinion of this group of authors that the financially insightful generation cultivates
basic financial literacies, such as an understanding of interest rates, installment
payment, a knowledge of how to conduct the budgetary plan, as well as the ability to
address the issue of an obligation in the future.
Continuing it further into the mix of the tangible substance of the pragmatic learning
that is implied by the abstraction of executing the services of BNPL entails the bonus
layer of reality that has a definite value for the learning process. As beneficial as it is
to the university students by painting a real life experiences that may be of benefit to
university students in look out for life time, it is operational in a way that it assists in
the training of mind, or psyche, as well as their behavior or actions in response to
situations likely to confront them in their lifetime. Therefore, when integrating
different stages of BNPL services that will assist university students in identifying the
advantages and/or disadvantages of utilizing such services, the provision of academic
value is bound to benefit the university students, particularly in terms of critical
thinking and decision-making improvement.
In addition, the role of fostering partnerships between leaders of educational
organizations and those of financial companies should not be overemphasized. As
noted by Dimitrov & Ceryan, (2018), there are advantages to these collaborative
initiatives and they provide a continuous and active approach of delivering
professional financial concepts into education facilities including classrooms and
lecture theaters. This kind of cooperation could be the basis for creating and
developing the workshops and seminars that are much more engage and related to the
topics and experiences that the university students might face in future within the
financial sector. Here, during the forums, university students have an opportunity to
31
 get connected with professionals working in the financial sector and discuss with
them, thus being introduced to the actual practices of managing financial issues and
advised on the tendencies of FinTech and BNPL services.
This is a holistic model that works at the theoretical level as well as the practical levels
of the profession and the specialized lodgement of the participants This is a model that
provides the dynamics of building a society that is financially literate and proactively
practicing the knowledge they have gained professionally. With such a far-reaching
educational approach, societies are assured of imparting knowledge to their citizens on
the right kind of decisions to make for financial prosperity in the economies of the
world and the ways of coming out of the financial crises that may be experienced.

2. Guidelines for responsible usage of BNPL services

To ensure BNPL services do not have a detrimental influence, measures should be
taken; standards for their reasonable use should be developed and shared. These
guidelines should call for improved understanding of service terms or
terms/conditions, self- check up on the financial health before using BNPL services,
and the importance of honoring payment schedules to avoid inflating interest costs and
credit score dropping (Jose et al. , 2024). Furthermore, financial institutions who
provide BNPL have to ensure that they engage in practices that include clear
information to consumers on the fees, interest rate (if any), and the consequences of
utilizing the deferred payment method.
Due to the education focus and policy implications of these approaches, the
implementation requires collective partnerships of schools and colleges, banks and
financial institutions, independent and consumer activist groups and governments. In
our daily lives, if people learn how to budget and spend wisely, thus avoiding debts
and too much debt, we can prevent people from sustaining their financial insecurity
and help propel society to increase its level of financial education.

VI. TIMESCALE

Activitie 20 23 24 31 1/ 2/ 7/ 8/ 10 17 18 19 20 21 22 23 24 25 26

32
s /5 /5 /5 /5 6 6 6 6 /6 /6 /6 /6 /6 /6 /6 /6 /6 /6 /6

Researc
h topic;
title
->
Decide
topic

Reading
literatur
e

Address
objectiv
es

Draft
literatur
e review

Finalize
review

Prepare
question
naire

Launch
survey

Analyze
data

Conclusi
on from
the
survey

Related
findings

Compari
son
related
reviews

Finalize
outputs

Gather
informat
ion

Format

Print

33
 VII. CONCLUSION

A. Summary of key findings

The buying characteristics of the respondents share similarities with the buying
behavior of normal undergraduates. They have great knowledge about SPayLater’s
features. They acknowledge the bad consumption habits when using SPayLater. The
payment preference often used by the respondents is complete payment. They do not
use SPayLater much, normally less than 50%. They mainly use SPayLater to buy
Fashion (82.35%), Electronics(94.11%) and Health & Beauty(85.29%).

B. Limitations of the study

1. Potential biases

As we review our research into the influence of Shopee SPayLater on university

students' consumption behavior, we have recognized possible lapses in our approach
that may affect the clarity of our research outcomes. For our study, we have two
pivotal theories of Social Comparison and Consumption Behaviour. Potentially, the
foundation theories we center our study around have provided a lens through which we
have examined all obtained data, hence possibly overlooking unrelated but equally
valuable resources. Furthermore, our substantial reliance on these beliefs may have
affected our study since we may have unconsciously prioritized findings that support
these theories while ignoring equally important evidence.
The limitation imposed by time further put our study into greater risk of volunteer
bias. The pool of participants, mostly our acquaintances who are also freshmen, might
not entirely represent the diversity of student attitudes towards SPayLater. As a
consequence, our study may possess uncertainties regarding the representativeness of
the participants. Because our research sample may represent only a small portion of
the desired student demography, it underlines our hindrance to gaining a fully
comprehensive understanding of student financial activities.

34
Additionally, we have also identified some extent of instrument bias within our
research methodology. By confining our research to a single tool for data collection
and evaluation, our approach might not provide the same stability as employing
multiple frameworks or models. Such dependence on a singular methodology leads us
to the realization that our analyses and findings could be compromised. On that
account, we potentially neglect the wealth of insights that a multi-faceted evaluative
approach could reveal.
Lastly, our self-analysis leads us to one significant barrier in our research
process,which is the observer bias. Possibly, the preconceived perspective of our group
has, to some extent, distort and manipulate the outcomes so as to fit our research aims
and objectives. This stands as a clear reminder to maintain objectivity, partiality while
highlighting the fine line between researcher insight and influence.

2. Scope and generalizability

When we examine closely at our study on how Shopee's SPayLater influences

university students' purchasing behaviors, we realize that our work is quite beneficial,
although it does have some limitations. Limitations that stem from several areas where
we may have been biased include confining our thinking to some theories about why
people consume goods or how they justify their morality, time constraints that forced
us to recruit only friends who were mostly freshmen, and reliance on a single method
of data collection that exposed us to our own perceptions and assumptions.
Nevertheless, what we can identify in our study are still relevant and important battles
that one could name. The flaws mentioned, however, do not necessarily negate the fact
that our study could offer some generalised introductory insights. As earlier noted, we
only selected a small sample of students and the criteria may have not covered a
diverse population of the society; but it played a role in partially explaining how young
adults can understand or approach the use of SPayLater. It is pertinent to point out that
the study was driven by specific theories, which could have helped reduced our bias.
As a result, it will be recommendable for subsequent researchers, after this research, to
try other theories or approaches in an effort to come up with a better understanding of

35
the matter being studied. It is equally important to note that other factors that may
decrease the generality of the results could also encompass only opting for students in
their various years or even from different schools in general.
Our speculations and studies revealed that putting reliance on just one approach to
collect info will not capture all the activities that can be seen. So, in the future, more
efficient approaches and methods should be employed to get a better understanding of
the consumer behavior. We also discovered that it is possible for ourselves to influence
the findings of the research in some ways and that would warrant looking for ways on
how to eliminate prejudice in a project in future.
Integratively, our study is only the first step in the journey that needs to be taken. It
allows for more study on consumer behaviour especially as it relates to services such
as SPayLater on students’ expenditures. Actually, we are demanding more work in this
area, stepping back to appreciate it from various perspectives and coordinating better
with practitioners in various disciplines. We ground the first bricks on which others
can name the next levels of findings and hope that these might be useful for a broader
spectrum of contexts for researching how people use their money.

C. Suggestions for future research

1. Further exploration of long-term effects

On the bright side, SPayLater can be a budgeting buddy. Spreading payments allows
for better financial planning, especially for those must-have items. Consistent on-time
payments can even build a good credit history, a golden ticket for future loans. Plus,
SPayLater unlocks the door to pricier items, potentially putting quality products within
reach.

However, this newfound freedom can turn into a sneaky debt monster. The ease of
SPayLater can lure you into a cycle of "buy now, regret later" purchases. Those
tempting installments can quickly snowball into a mountain of debt, especially with
interest fees ticking away. Missed payments further pile on the misery with late fees
and a tarnished credit score. This can make it tough to access other financial products
down the line.
36
The key to keeping SPayLater your friend, not foe, is financial discipline. Think of it
like a loan – only use it for planned purchases consumers can truly afford within the
repayment period. Track your spending religiously and create a budget to avoid
impulse buys. Consider alternative payment methods for smaller purchases to stay
grounded in financial reality.

In summary, SPayLater can be an effective tool, but like any financial instrument, it
requires responsible use. By understanding its long-term effects, you can transform
SPayLater from a short-term savior into a tool that empowers you to achieve your
financial goals.

2. Comparative studies with other BNPL services

2.1.Vietnam Buy Now Pay Later (BNPL) Services Market

The buy now pay later (BNPL) service has become increasingly familiar to
Vietnamese consumers, especially among tech-savvy and financially proactive young
shoppers. This payment solution allows buyers to make immediate purchases and
subsequently spread the payments over several months, a flexibility that caters to both
the product's cost and the buyer's financial capacity. Currently, in the global BNPL
market, major players include Klarna, Afterpay, and Affirm, boasting millions of users
and facilitating countless transactions each year. Klarna, a Swedish BNPL company,
stands out as the industry leader, reporting a remarkable Gross Merchandise Value
(GMV) of USD 53 billion, a figure roughly five times that of its closest competitor, the
American firm Afterpay. It is essential to distinguish BNPL from traditional credit
services. While both offer deferred payments, BNPL does not rely on creditworthiness
and features a predetermined payment schedule. This makes BNPL particularly
attractive to individuals without credit cards, as loan approvals are nearly
instantaneous. Beyond credit, BNPL prioritizes shopping convenience. Unlike
traditional installment payment processes that demand extensive documentation, BNPL
providers offer a streamlined, tech-driven registration process, enhancing the
advantages of digital technology for consumers. This underscores BNPL's appeal as a
user-friendly and accessible financial solution.

37
2.2.Key BNPL partnerships in Vietnam

Sendo (Vietnam) and Kredivo (Indonesia)

Sendo’s BNPL service is made possible through a partnership between Kredivo, an
Indonesian online credit platform, and local financial firm, Tin Viet Finance Joint
Stock Company (VietCredit), which operates in the fields of finance, credit, and capital
mobilization. Users can register for an account to obtain a credit line and use it to pay
for purchases on Sendo’s e-commerce marketplace.

Kredivo and Phoenix

Kredivo also has a BNPL arrangement with Vietnam’s Phoenix Holdings. Phoenix
Holdings is a corporation that offers investment, retail, and financial services. The first
joint venture between Kredivo and Phoenix Holdings was also established in
partnership with VietCredit.

Momo and TPBank

In July 2021, MoMo joined forces with TPBank to enter the BNPL market. The MoMo
Postpaid Wallet enables users to access small lines of credit for a vast range of services
within the MoMo application with term limits of 35 to 45 days. This includes various
essential services like electricity and water bills, internet services, apartment fees, and
tuition fees, and for shopping at supermarkets, convenience stores, and online.

LOTTE and OpenWay

LOTTE Finance Vietnam, a subsidiary of South Korea’s leading credit card company,
LOTTE Card, has recently introduced a BNPL service named PayLater by LOTTE
Finance to enhance the online shopping experience of Vietnamese consumers. It is
among the first BNPL solutions in Vietnam and was developed using Way4 digital
payments software provided by OpenWay.
c.SPayLater service in the Vietnam market

SPayLater boasts a seamless integration with Shopee, allowing users to

effortlessly convert purchases into installments directly within the platform. This
convenience factor is a major draw, particularly for frequent Shopee users.
38
Additionally, SPayLater offers potentially high spending limits and flexible repayment
options, catering to diverse consumer needs. The ability to combine SPayLater with
Shopee vouchers and discounts further enhances its appeal for budget-conscious
shoppers.

However, SPayLater's limitations cannot be ignored. Its functionality is restricted to

Shopee purchases, limiting its applicability for those who shop across various
platforms. Furthermore, processing fees and interest rates can add to the overall cost of
using the service. While SPayLater offers a range of repayment options, it's crucial to
note that not all Shopee users qualify for SPayLater, as the service operates on an
invitation-based system.

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APPENDIX

APPENDIX: SURVEY AND INTERVIEW QUESTIONNAIRES

SURVEY ON CONSUMPTION BEHAVIOR OF FOREIGN TRADE
UNIVERSITY’S UNDERGRADUATES (HO CHI MINH CITY CAMPUS)
WHEN USING SPAYLATER
----------o0o----------
Dear,...
We are a group of International Business major freshmen from FTU2 - Foreign Trade
University 2 in Ho Chi Minh city. Currently, we are constructing a research paper on
“THE EFFECT OF SHOPEE PAYLATER ON FOREIGN TRADE
UNIVERSITY’S UNDERGRADUATES (HO CHI MINH CITY CAMPUS)
CONSUMPTION BEHAVIOR”. With a view to realizing our research objectives, we
have designed a questionnaire as shown below and we hope to receive enthusiastic
support from everyone. All answers and opinions are welcomed and will be a critical
source of information contributing greatly to our research outcomes. Therefore, we hope
that you can spend a few minutes doing our survey. We sincerely appreciate your

44
valuable participation and support for our group’s research work. Finally, we wish you a
wonderful and energetic day!

I. PERSONAL INFORMATION
1. What is your age?
16 - 18
19 - 21
22 - 24
2. What is your gender?
Male
Female
Other
3. What year of study are you in?
First year
Second year
Third year
Fourth year
4. What is your average monthly allowance/income?
Less than 2 million VND
2-5 million VND
5-10 million VND
More than 10 million VND
5. Have you heard of Shopee Pay Later?
Yes
No
6. Have you used Shopee Pay Later?
Yes (If you select this box, please continue to answer the survey)
No (If you select this box, you can stop the survey here. Thank you for
your support!)

II. GENERAL UNDERSTANDING OF SPayLater

45
1. On a scale from 1 to 5, how would you rate your understanding of
the terms and conditions of Shopee Pay Later?
2. In your opinion, Shopee SPayLater IS a type of:
Credit card
Loan service
Payment method
All of the above
Unsure
3. How do you think interest rates work with Shopee SPayLater?
No interest is charged
Interest is charged on the entire purchase amount
Interest is charged only on the remaining unpaid balance
Unsure
4. What are your opinions about the consequences of missing a
SPayLater payment?
No impact
Late fees are applied
Your Shopee account is suspended
Both late fees and account suspension
Unsure
5. What is your SPayLater debt payment preference
Minimum Payment
Partial Payment
Complete Payment
6. What is the volume of your SPayLater wallet expenditures
compared to all your expenditures on Shopee?
Less than 25% of my Shopee purchases (Occasional)
25% to 50% of my Shopee purchases (Moderate)
50% to 75% of my Shopee purchases (Regular)
More than 75% of my Shopee purchases (Always)

III. KNOWLEDGE AND ATTITUDES TOWARDS SPAYLATER

46
1. Knowledge of SPayLater Features:
Please indicate your level of agreement with the following statements about Shopee
SPayLater.
(1) Strongly disagree
(2) Disagree
(3) Neutral
(4) Agree
(5) Strongly agree

Questions Scale

Ordinal Content 1 2 3 4 5
number

1 SPayLater Strongly Disagree Neutral Agree Strongly

charges interest disagree agree
on the entire
purchase amount
from the day of
purchase.

2 Using SPayLater Strongly Disagree Neutral Agree Strongly

can negatively disagree agree
impact my credit
score if I miss
payments.

3 There are late Strongly Disagree Neutral Agree Strongly

fees associated disagree agree
with missed
SPayLater
payments.

4 The maximum Strongly Disagree Neutral Agree Strongly

47
 Questions Scale

Ordinal Content 1 2 3 4 5
number

spending limit disagree agree

for SPayLater
can be adjusted
based on my
needs.

5 SPayLater can Strongly Disagree Neutral Agree Strongly

be used for disagree agree
various bill
payments

2. On a scale from 1 to 5, how confident are you in your ability to assess the
financial implications (interest, fees, impact on budget) of using SPayLater for a
purchase? (Scale: 1 = Not confident; 5 = Very confident)

3. Have you ever felt confused or unsure about the terms and conditions of using
SPayLater?
Yes
No
→ If yes - where did you encounter difficulty understanding the terms and
conditions?

4. Attitudes Towards SPayLater:

Please indicate your level of agreement with the following statements about Shopee
SPayLater. (Scale: 1 = Strongly disagree, 5 = Strongly agree)
(1) Strongly disagree
(2) Disagree
(3) Neutral
(4) Agree

48
 (5) Strongly agree

Statements Scale

Ordinal Content 1 2 3 4 5
numbers

1 SPayLater is a Strongly Disagree Neutral Agree Strongly

helpful financial tool disagree agree
that allows me to
manage my budget
better.

2 SPayLater Strongly Disagree Neutral Agree Strongly

encourages me to disagree agree
make impulse
purchases I wouldn't
normally make.

3 Using SPayLater Strongly Disagree Neutral Agree Strongly

makes it easier to disagree agree
overspend and
accumulate debt.

4 I would be more Strongly Disagree Neutral Agree Strongly

comfortable using disagree agree
SPayLater if I
received better
financial education
about it.

5. Sources of Financial Information:

Where do you typically go for information about financial products
and services like SPayLater?

49
Shopee app or website
Bank websites or financial institutions
Educational resources or workshops
Friends, family or peers
Social media or online influencers
News articles or financial websites

IV. PURCHASING BEHAVIORS

Frequency and Triggers:
1. On a scale from 1 to 5, how frequently do you use Shopee Pay Later?

2. What are the main reasons you choose to use SPayLater for a purchase?
To manage my budget and spread out payments
To afford a more expensive item I wouldn't buy otherwise
For impulse purchases I wouldn't normally make
To take advantage of promotions or discounts offered with SPayLater
Others

Impulse Purchases and Decision-Making:

3. On a scale from 1 to 5, how often do you make impulse purchases using
SPayLater that you wouldn't have made otherwise?

4. What are the main factors that you think will contribute to impulse purchases
using SPayLater?
Attractive product promotions or discounts
Limited-time offers that create a sense of urgency
Appealing product visuals and descriptions on Shopee
Peer pressure or seeing others recommend products
Feeling bored or stressed and seeking retail therapy
Influence of social media marketing and influencers
Others

50
5. Do you have any strategies in place to help you avoid impulse purchases using
SPayLater?
I wait 24 hours (sleep on it) before confirming a SPayLater purchase
I discuss the purchase with a friend or family member before using SPayLater
I set a spending limit for myself when using SPayLater
I avoid browsing Shopee during times of temptation
I use apps or browser extensions to block impulsive purchases
I maintain a separate wishlist and wait for planned purchases
Others

6. On a scale from 1 to 5, how effective are the strategies you use to avoid impulse
purchases with SPayLater?

Planning and Budgeting

7. Do you typically set a budget for yourself before using SPayLater?
Yes
No
Maybe

7.1 If yes - How do you typically plan your purchases for SPayLater use?
I set a monthly budget for SPayLater purchases based on my income and expenses
I allocate a specific amount for each purchase I plan to make with SPayLater
I prioritize needs over wants when planning SPayLater purchases
I use budgeting apps or tools to track my SPayLater spending
I consult with friends or family for advice on planned SPayLater purchases

7.2 If no - If you don't plan your purchases, what factors typically influence your
decision to use SPayLater on the spot?
The price and perceived value of the item
Attractive promotions or discounts offered with SPayLater
Limited-time offers or flash sales
Seeing friends or influencers using similar products

51
Emotional impulse to buy something I want right away
Others

8. Do you track your SPayLater spending to ensure you stay within your budget?
Yes
No
Maybe

8.1 If yes - How do you typically track your SPayLater spending?

I monitor my SPayLater balance and upcoming payments within the Shopee app
I use a separate budgeting app or spreadsheet to track SPayLater spending
I set spending alerts within the Shopee app to stay informed
I rely on bank statements or notifications to track SPayLater spending
Others

8.2 If no - If you don't track your SPayLater spending, how do you stay informed
about your overall financial situation?

V. SPAYLATER USAGE PATTERN

This section will ask how often do you use SPayLater based on the types of Shopee's
goods
(Scale: 1 = Strongly disagree, 5 = Strongly agree)

Questions Scale

Ordinal Type of goods 1 2 3 4 5

number

1 Grocery

2 Fashion

3 Health - Beauty

4 Electronics

52
 5 Babies - kids

6 Vehicles

7 Digital products
(insurance,
phone cards,...)

8 Home & living

THANK YOU!
Your participation in this study is highly valued. The gathered data will contribute
significantly to our understanding of financial behavior among students using
SPayLater. Thank you for your time and willingness to participate!

53