Determinants of Students Financial Behavior Toward the Use of PayLater: A Review of Behavioral Finance

Abstract

This study explores the psychological and social factors influencing college students' financial behavior in using PayLater services. Amid the growing adoption of digital credit among young adults, concerns have emerged about impulsive consumption and debt management. Using a Systematic Literature Review (SLR) approach, the study analyzed 25 peer-reviewed publications from 2019 to 2025 that focused on students' financial decision-making. Four dominant factors were identified: financial literacy, self-control, attitudes toward debt, and peer-driven lifestyle. These variables interact in complex ways, with emotional and contextual influences often outweighing purely rational considerations. Financial literacy alone is not sufficient; its effects are often mediated by behavioral and environmental variables. The findings indicate that interventions focused on impulse regulation, risk awareness, and social perception are more effective than knowledge-based education alone. This review contributes to the theoretical development of behavioral finance by highlighting the role of psychological bias and social norms in shaping credit-related behavior. It also suggests the need for future research using longitudinal or mixed methods to capture the evolving nature of students’ financial habits. Overall, the study offers a conceptual foundation for designing financial education models that align with the realities of digital-native students.