ETHICAL CONCERNS AND POST-PURCHASE REGRET IN BNPL ADOPTION
AN ISLAMIC MARKETING PERSPECTIVE
Keywords:
BNPL, Islamic marketing, Maqasid al-shariah, Consumer regret, Ethical financeAbstract
The rapid adoption of Buy Now, Pay Later (BNPL) financing has raised critical ethical concerns, especially in Muslim-majority societies where Islamic financial principles emphasize transparency, fairness, and the avoidance of excessive risk (gharar). This conceptual paper examines how BNPL marketing tactics such as urgency cues, installment framing, and affordability illusions may trigger impulse buying and post-purchase regret, particularly among Muslim consumers. Drawing upon Islamic marketing ethics and cognitive dissonance theory, this study proposes a conceptual framework to assess the misalignment between BNPL practices and the maqasid al-shariah (objectives of Islamic law), especially in preserving consumer well-being and preventing harm. The paper concludes with policy implications and strategic recommendations for Islamic financial institutions and marketers to ensure ethical BNPL implementations that uphold Shariah principles.
Downloads
References
Abbas, A., Nisar, Q. A., Mahmood, M. A. H., Chenini, A., & Zubair, A. (2020). The role of Islamic marketing ethics towards customer satisfaction. Journal of Islamic Marketing, 11(4), 1001–1018. https://doi.org/10.1108/JIMA-11-2017-0123/FULL/XML
Adnan, A. A., Ghani, B. Abd., Zin, S. M., & Aziz, I. A. (2017). The Disciplinary Status of Islamic Consumer Behavior. International Journal of Asian Social Science, 7(12), 949–962. https://doi.org/10.18488/JOURNAL.1.2017.712.949.962
Aji, H. M., Husin, M. M., Othman, A. K., Hidayat, A., & Wan Rashid, W. E. (2024). Religious-based ethics and buy-now-pay-later re-usage intention among Muslim consumers in Indonesia and Malaysia: a commitment-trust theory perspective. Cogent Business and Management, 11(1), 2363441. https://doi.org/10.1080/23311975.2024.2363441;WGROUP:STRING:PUBLICATION
Amini, S., & Rahmawati, A. (2025). The effect of price discount, FOMO, pay later on impulse buying and cognitive dissonance post-purchase in commerce shopping among the millennial generation. Edelweiss Applied Science and Technology, 9(3), 2354–2366. https://doi.org/10.55214/25768484.V9I3.5799
Chou, C.-H., Chien, S.-F., & Tien, H.-K. (2025). Do consumers’ post-purchase regrets reinforce or inhibit future impulse buying behavior propensity? Assessing the moderating effect of neuroticism and temporal perspective. Current Psychology 2025, 1–13. https://doi.org/10.1007/S12144-025-07873-1
deHaan, E., Kim, J., Lourie, B., & Zhu, C. (2024). Buy Now Pay (Pain?) Later. Management Science, 70(8), 5586–5598. https://doi.org/10.1287/MNSC.2022.03266/ASSET/IMAGES/LARGE/MNSC.2022.03266F3B.JPEG
Fakhruddin. (2024). Islamic Marketing Values and Their Impact on Sales Volume: Insights from Wahyu Jaya Store, Banda Aceh. APLIKATIF: Journal of Research Trends in Social Sciences and Humanities, 3(1), 53–62. https://doi.org/10.59110/APLIKATIF.V3I1.337
Farikhin, A., & Mulyasari, H. (2022). Gharar, Fraud and Dispute in Islamic Business Transaction an Islamic Law Perspectives. International Economic and Finance Review, 1(2), 40–53. https://doi.org/10.56897/IEFR.V1I2.18
Festinger, L. (1997). A Theory of Cognitive Dissonance [1957]. Standford CA Standford University, 291. https://www.sup.org/books/sociology/theory-cognitive-dissonance
Firdaus, B., Fauzan, F., Yenti, E., Yufriadi, F., Rahmiati, R., & Afifi, A. A. (2024). Buy Now Pay Later Transactions (BNPL) in Indonesia: Implications for Maqāṣid Sharia in the Digital Era. Islam Realitas: Journal of Islamic and Social Studies, 10(2), 130–146. https://doi.org/10.30983/ISLAM_REALITAS.V10I2.8690
Globe Newswire. (2025). Buy Now Pay Later Global Business Report 2025: BNPL Payments to Grow by 13.7% to Surpass $560 Billion this Year, Driven by Klarna, Afterpay, PayPal, and Affirm – Forecast to 2030. https://www.fintechfutures.com/press-releases/buy-now-pay-later-global-business-report-2025-bnpl-payments-to-grow-by-13-7-to-surpass-560-billion-this-year-driven-by-klarna-afterpay-paypal-and-affirm-forecast-to-2030
Gomez, A. G., Falales, K., & Villaflores, T. M. (2022). Pre- and Post-Purchase Factors Contributing to Dissonance of Filipino Credit Cardholders Amidst Exposure to Financial Risk. Journal of Business and Management Studies, 4(2), 294–300. https://doi.org/10.32996/JBMS
Good, M. C., & Hyman, M. R. (2021). Direct and indirect effects of fear-of-missing-out appeals on purchase likelihood. Journal of Consumer Behaviour, 20(3), 564–576. https://doi.org/10.1002/CB.1885
Grand View Research. (2023). Buy now pay later market size, share & trends analysis report. https://www.grandviewresearch.com/industry-analysis/buy-now-pay-later-market-report
Güney, N. (2024). Maqāsid al-Sharī‘a in Islamic Finance: A Critical Analysis of Modern Discourses. Religions 2024, Vol. 15, Page 114, 15(1), 114. https://doi.org/10.3390/REL15010114
Halim, N. A., Salleh, S. M., Mustapa, S. N. S., Rozali, N., & Khairi, S. M. M. (2024). “From Instant Gratification to Long-Term Consequences: How Buy Now, Pay Later Influences Consumer Behavior and Financial Stability.” International Journal of Research and Innovation in Social Science, VIII(IX), 403–411. https://doi.org/10.47772/IJRISS.2024.809035
Inman, J. J., & Zeelenberg, M. (2002). Regret in Repeat Purchase versus Switching Decisions: The Attenuating Role of Decision Justifiability. Journal of Consumer Research, 29(1), 116–128. https://doi.org/10.1086/339925
Islam, M. S., Azizzadeh, F., & Ali, M. (2024). Ethical deployment of cognitive biases in marketing a framework for responsible influence. Applied Psychology Research, 3(2), 1363–1363. https://doi.org/10.59400/APR.V3I2.1363
Katterbauer, K., Syed, H., Genc, S. Y., & Cleenewerck, L. (2023). AI DRIVEN ISLAMIC BUY NOW PAY LATER (BNPL) – A LEGAL ANALYSIS. Journal of Management and Islamic Finance, 3(1), 1–19. https://doi.org/10.22515/JMIF.V3I1.6671
Keil, J., & Burg, V. (2023). “Buy Now, Pay Later” and Impulse Shopping. SSRN Electronic Journal. https://doi.org/10.2139/SSRN.4629415
Maesen, S., & Ang, D. (2024). EXPRESS: Buy Now Pay Later: Impact of Installment Payments on Customer Purchases. Journal of Marketing. https://doi.org/10.1177/00222429241282414
Marjerison, R. K., Hu, J., & Wang, H. (2022). The Effect of Time-Limited Promotion on E-Consumers’ Public Self-Consciousness and Purchase Behavior. Sustainability 2022, Vol. 14, Page 16087, 14(23), 16087. https://doi.org/10.3390/SU142316087
Masao, M., & Salehudin, I. (2023). Unveiling the Dynamics of Expectation, Flow, Enjoyment, and Satisfaction: Drivers of Continued Subscription Intentions Among Netflix Users. The South East Asian Journal of Management, 17(2), 5. https://doi.org/10.21002/seam.v17i2.1410
Nguyen, K. T. B., Tran, T. B., Thai, C. M., Duong, V. C., & Nguyen, T. K. (2024). Promoting Consumers’ Adoption of Buy-Now-Pay-Later Feature while Using E-wallet Application: The Case of Gen Z in Vietnam. European Conference on Innovation and Entrepreneurship, 19(1), 555–564. https://doi.org/10.34190/ECIE.19.1.2593
Obukhovich, S., Sipilä, J., & Tarkiainen, A. (2024). Post-purchase effects of impulse buying: A review and research agenda. Journal of Consumer Behaviour, 23(3), 1512–1527. https://doi.org/10.1002/CB.2287
PwC Middle East. (2023). Fintech Series: Buy Now Pay Later. https://www.pwc.com/m1/en/media-centre/articles/fintech-series-buy-now-pay-later.html
Raj, V. A., Jasrotia, S. S., & Rai, S. S. (2024). Intensifying materialism through buy-now pay-later (BNPL): examining the dark sides. International Journal of Bank Marketing, 42(1), 94–112. https://doi.org/10.1108/IJBM-08-2022-0343/FULL/XML
Ratnasari, R. T., Gunawan, S., Mawardi, I., & Kirana, K. C. (2020). Emotional experience on behavioral intention for halal tourism. Journal of Islamic Marketing, 12(4), 864–881. https://doi.org/10.1108/JIMA-12-2019-0256/FULL/XML
Relja, R., Ward, P., & Zhao, A. L. (2024a). Understanding the psychological determinants of buy-now-pay-later (BNPL) in the UK: a user perspective. International Journal of Bank Marketing, 42(1), 7–37. https://doi.org/10.1108/IJBM-07-2022-0324/FULL/XML
Relja, R., Ward, P., & Zhao, A. L. (2024b). Understanding the psychological determinants of buy-now-pay-later (BNPL) in the UK: a user perspective. International Journal of Bank Marketing, 42(1), 7–37. https://doi.org/10.1108/IJBM-07-2022-0324/FULL/XML
Rice, G. (1999). Islamic ethics and the implications for business. Journal of Business Ethics, 18(4), 345–358. https://doi.org/10.1023/A:1005711414306/METRICS
Saeed, M., Ahmed, Z. U., & Mukhtar, S. M. (2001). International marketing ethics from an Islamic perspective: A value-maximization approach. Journal of Business Ethics, 32(2), 127–142. https://doi.org/10.1023/A:1010718817155/METRICS
Simanjuntak, E. R., Rendy, ;, & Pratama, S. (2024). IT Affordances, Flow, and Perceived Scarcity: A Study on Impulsive Buying Behavior and Post-Purchase Dissonance in Live Shopping. Journal The Winners, 25(1), 13–23. https://doi.org/10.21512/TW.V25I1.11526
Sinnewe, E., & Nicholson, G. (2023). Healthy financial habits in young adults: An exploratory study of the relationship between subjective financial literacy, engagement with finances, and financial decision-making. Journal of Consumer Affairs, 57(1), 564–592. https://doi.org/10.1111/JOCA.12512
Sutikno, B., & Aji, H. M. (2024). Understanding Buy-Now-Pay-Later Adoption in the Muslim Market: Do Religious-Based Ethics Matter? The South East Asian Journal of Management, 18(2), 5. https://doi.org/10.21002/seam.v18i2.1690
Sweeney, J. C., Hausknecht, D., & Soutar, G. N. (2000). Cognitive Dissonance after Purchase: A Multidimensional Scale. Psychology & Marketing, 17(5), 369–385. https://doi.org/10.1002/(SICI)1520-6793(200005)17:5<369::AID-MAR1>3.3.CO;2-7
Tiemessen, J., Schraffenberger, H., & Acar, G. (2023a). The Time is Ticking: The Effect of Limited Time Discounts on Consumers’ Buying Behavior and Experience. Conference on Human Factors in Computing Systems - Proceedings. https://doi.org/10.1145/3544549.3585735/SUPPL_FILE/3544549.3585735-VIDEO-PREVIEW.MP4
Tiemessen, J., Schraffenberger, H., & Acar, G. (2023b). The Time is Ticking: The Effect of Limited Time Discounts on Consumers’ Buying Behavior and Experience. Conference on Human Factors in Computing Systems - Proceedings. https://doi.org/10.1145/3544549.3585735/SUPPL_FILE/3544549.3585735-VIDEO-PREVIEW.MP4
Wilson, J. A. J., & Liu, J. (2010). Shaping the Halal into a brand? Journal of Islamic Marketing, 1(2), 107–123. https://doi.org/10.1108/17590831011055851/FULL/XML
Wilson, J. A. J., & Liu, J. (2011). The challenges of Islamic branding: Navigating emotions and halal. Journal of Islamic Marketing, 2(1), 28–42. https://doi.org/10.1108/17590831111115222/FULL/XML
Wulandari, F., & Andraeny, D. (2023). Mediation and Moderation of Islamic Religiosity and Financial Risk Tolerance. Journal of Finance and Islamic Banking, 6(1). https://doi.org/10.22515/JFIB.V6I1.8641
Xiao, J. J. (2016). Consumer Financial Capability and Wellbeing. Handbook of Consumer Finance Research: Second Edition, 3–17. https://doi.org/10.1007/978-3-319-28887-1_1
Yousaf, O., & Gobet, F. (2013). The emotional and attitudinal consequences of religious hypocrisy: Experimental evidence using a cognitive dissonance paradigm. Journal of Social Psychology, 153(6), 667–686. https://doi.org/10.1080/00224545.2013.814620;WEBSITE:WEBSITE:TFOPB;PAGEGROUP:STRING:PUBLICATION
