Purpose: The study examines the adoption of Buy Now Pay Later, consumers' awareness of the BNPL payment method, the factors that influence BNPL use, and its impact on consumers' financial discipline in Trichy district, Tamil Nadu, India. The Buy Now, Pay Later option is seen as a flexible payment method that provides consumers with great convenience by reducing the burden of immediate payment. However, awareness of BNPL's effects on credit scores and its mechanisms is needed to prevent consumers from facing long-term financial constraints; here, financial literacy plays a major role. Methodology: A descriptive research design; data were collected using a structured questionnaire, yielding approximately 188 valid responses. The normality tests indicated that the data were not normal. Descriptive and nonparametric tests, such as the Chi-Square, Mann-Whitney U, and Kruskal-Wallis tests, as well as frequency, were also used in this research. Findings: The study identified that a large proportion of respondents fall within the 20-24 age group (46.8%), with female respondents accounting for about 54.3% of the sample. Almost 44.1% of respondents use e-commerce platforms often, whereas 42.6% use them sometimes. The Amazon Pay Later was the most used BNPL application, with 37.2% of respondents opting for it. The study found that 65.4% of respondents were not completely aware of how BNPL works, and only 39.4% were aware that using BNPL would affect their credit scores. The results of the statistical analysis suggest that there is a relationship between an easy purchase process and impulsive purchasing behaviour, and that awareness of BNPL policies affects usage. Implications: This study emphasises that organisations that use the BNPL mechanism should establish a clear policy framework to protect investors. There should be greater awareness of BNPL and its impact on credit scores. Therefore, increasing financial literacy awareness is important to create a safe financial environment for consumers.
Buy Now Pay Later (BNPL), Consumer Adoption, Consumer Awareness, Credit Score Awareness, Impulsive Buying