Published: 2026-07-21
The Influence of Digital Financial Services, Social Media, and Buy Now Pay Later on Over-Indebtedness with Financial Literacy as a Moderating Variable
DOI: 10.35870/ijmsit.v6i2.7748
Abstract
This study investigates the impact of digital financial services and financial literacy on the issue of over-indebtedness among Millennials and Generation Z in Jakarta. Utilizing a quantitative approach with a causal design, data were gathered from 254 participants through questionnaires and analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM). Findings reveal that both digital financial services and financial literacy significantly influence over-indebtedness. Notably, higher levels of over-indebtedness correspond to more effective debt management and reduced financial distress. This suggests that leveraging digital financial services, alongside enhanced financial literacy, fosters improved financial stability in younger demographics. In contrast, social media and Buy Now Pay Later options did not demonstrate significant effects, and financial literacy did not serve as a moderating factor in the examined relationships. This research enriches the understanding of youth financial behavior within the digital economy and offers actionable insights for promoting financial literacy and risk management strategies aimed at sustaining financial well-being among Millennials and Generation Z.
Keywords
Digital Financial Services; Financial Literacy; Buy Now Pay Later; Over-Indebtedness; Young Generation
Article Information
This article has been peer-reviewed and published in the International Journal of Management Science and Information Technology. The content is available under the terms of the Creative Commons Attribution 4.0 International License.
-
Issue: Vol. 6 No. 2 (2026)
-
Section: Articles
-
Published: 2026-07-21
-
License: CC BY 4.0
-
Copyright: © 2026 Authors
-
DOI: 10.35870/ijmsit.v6i2.7748
AI Research Hub
This article is indexed and available through various AI-powered research tools and citation platforms. Our AI Research Hub ensures that scholarly work is discoverable, accessible, and easily integrated into the global research ecosystem.
Helma Yuliyana, Universitas Teknologi Muhammadiyah Jakarta
Management Study Program, Faculty of Social Economics and Humanities, Universitas Teknologi Muhammadiyah Jakarta, South Jakarta City, Special Capital Region of Jakarta, Indonesia
Abdul Mukti Soma, Universitas Teknologi Muhammadiyah Jakarta
Management Study Program, Faculty of Social Economics and Humanities, Universitas Teknologi Muhammadiyah Jakarta, South Jakarta City, Special Capital Region of Jakarta, Indonesia
-
Abizar, M., Indriayu, M., & Hindrayani, A. (2023, July 2). Influence of digital wallets and financial literacy on consumptive behavior of students in Surakarta City. Oikos, https://journal.unpas.ac.id/index.php/oikos/article/view/6439/3605.
-
Abu Daqar, M. A. M., Arqawi, S., & Karsh, S. A. (2020). Fintech in the eyes of Millennials and Generation Z: The financial behavior and fintech perception. Banks and Bank Systems, 15(3), 20–28. https://doi.org/10.21511/bbs.15(3).2020.03
-
Adzkiya, H., Pamularsih, R. G., Nisa, T., & Sholikha, A. F. (2022). Peningkatan literasi keuangan melalui sosialisasi peran Otoritas Jasa Keuangan dalam upaya perlindungan masyarakat terhadap lembaga keuangan ilegal di Desa Suro. Proceedings of UINSAIZU, https://proceedings.uinsaizu.ac.id/index.php/kampelmas/article/view/423.
-
Agarwal, S., & Zhang, J. (2020). FinTech, lending and payment innovation: A review. Asia-Pacific Journal of Financial Studies, 49(3), 353–367. https://doi.org/10.1111/ajfs.12294
-
Aisjah, S. (2024). Intention to use buy-now-pay-later payment system among university students: A combination of financial parenting, financial self-efficacy, and social media intensity. Cogent Social Sciences, 10(1). https://doi.org/10.1080/23311886.2024.2306705
-
Aji, H. M., & Adawiyah, W. R. (2022). How e-wallets encourage excessive spending behavior among young adult consumers? Journal of Asia Business Studies, 16, 868–884. https://doi.org/10.1108/JABS-01-2021-0025
-
Alfarizi, M. (2023). Interaction of customer satisfaction and retention of digital services: PLS evidence from Indonesian sharia banking. International Journal of Islamic Economics and Finance (IJIEF), 6. https://doi.org/10.18196/ijief.v6i1.16824
-
Alkhwaldi, A. F. (2024). Digital transformation in financial industry: Antecedents of fintech adoption, financial literacy and quality of life. International Journal of Law and Management. https://doi.org/10.1108/IJLMA-11-2023-0249
-
Andreassen, C. S., Billieux, J., Griffiths, M. D., Kuss, D. J., Demetrovics, Z., Mazzoni, E., & Pallesen, S. (2016). The relationship between addictive use of social media and video games and symptoms of psychiatric disorders: A large-scale cross-sectional study. Psychology of Addictive Behaviors, 30(2), 252–262. https://doi.org/10.1037/adb0000160
-
Asari, A., Nababan, D., Amane, A. P. O., Kusbandiyah, J., Lestari, N. C., Hertati, L., Maswar, M., Farlina, B. F., Pandowo, A., Purba, M. L., Zulkarnaini, Z., & Ainun, A. N. A. (2023). Dasar penelitian kuantitatif. Repository Universitas Malang. https://repository.um.ac.id/5454/.
-
Asrun, N. A., & Gunawan, A. (2024). Pengaruh gaya hidup dan media sosial terhadap perilaku konsumtif generasi Z di Kota Medan dengan literasi keuangan sebagai media intervening. Jurnal Manajemen Bisnis Dan Keuangan, 5, 173–186. https://doi.org/10.51805/jmbk.v5i1.205
-
Badan Pusat Statistik, Indonesia. (2020, September). Hasil Sensus Penduduk (SP2020) pada September 2020 mencatat jumlah penduduk sebesar 270,20 juta jiwa. https://www.bps.go.id/id/pressrelease/2021/01/21/1854/hasil-sensus-penduduk--sp2020--pada-september-2020-mencatat-jumlah-penduduk-sebesar-270-20-juta-jiwa-.html.
-
Bartosiak, A., Lee, J. E., & Loibl, C. (2025). Fear of missing out, social media influencers, and the social, psychological and financial wellbeing of young consumers. PLoS ONE, 20. https://doi.org/10.1371/journal.pone.0319034
-
BPS-Statistics Indonesia DKI Jakarta. (2025). Jumlah penduduk menurut kelompok umur dan jenis kelamin (ribu jiwa) di Provinsi DKI Jakarta, 2025 - Statistical Data. https://jakarta.bps.go.id/en/statistics-table/3/WVc0MGEyMXBkVFUxY25KeE9HdDZkbTQzWkVkb1p6MDkjMw%3D%3D/jumlah-penduduk-menurut-kelompok-umur-dan-jenis-kelamin-di-provinsi-dki-jakarta--2020.
-
Bryła, P., Chatterjee, S., & Ciabiada-Bryła, B. (2022). The impact of social media marketing on consumer engagement in sustainable consumption: A systematic literature review. International Journal of Environmental Research and Public Health, 19. https://doi.org/10.3390/ijerph192416637
-
Choerudin, A., Waprindyastuti, R., & Khasanah, L. D. (2023). Literasi keuangan. PT Global Eksekutif Teknologi
-
Chowdhury, S. N., Faruque, M. O., Sharmin, S., Talukder, T., Mahmud, M. A. A., Dastagir, G., & Akter, S. (2024a). The impact of social media marketing on consumer behavior: A study of the fashion retail industry. Open Journal of Business and Management, 12, 1666–1699. https://doi.org/10.4236/ojbm.2024.123090
-
Chowdhury, S. N., Faruque, M. O., Sharmin, S., Talukder, T., Mahmud, M. A. A., Dastagir, G., & Akter, S. (2024b). The impact of social media marketing on consumer behavior: A study of the fashion retail industry. Open Journal of Business and Management, 12, 1666–1699. https://doi.org/10.4236/ojbm.2024.123090
-
Di Maggio, M., & Yao, V. (2021). Fintech borrowers: Lax screening or cream-skimming? The Review of Financial Studies, 34(10), 4565–4618. https://doi.org/10.1093/rfs/hhaa142
-
Frigerio, M., Ottaviani, C., & Vandone, D. (2020). A meta-analytic investigation of consumer over-indebtedness: The role of impulsivity. International Journal of Consumer Studies, 44, 328–342. https://doi.org/10.1111/ijcs.12570
-
Frost, J., Gambacorta, L., Huang, Y., Shin, H. S., & Zbinden, P. (2019). BigTech and the changing structure of financial intermediation. Economic Policy, 34(100), 761–799. https://doi.org/10.1093/epolic/eiaa003
-
Gunawan, H., Andara, M. R., & Hardayu, A. P. (2025). Dampak media sosial, influencer marketing dan periklanan online terhadap perilaku pembelian impulsif generasi Z di Indonesia: Peran FOMO. Jurnal Review Pendidikan Dan Pengajaran, 8, 874–880. https://doi.org/10.31004/jrpp.v8i1.41622
-
Gutiérrez-Nieto, B., Serrano-Cinca, C., & de la Cuesta-González, M. (2017). A multivariate study of over-indebtedness’ causes and consequences. International Journal of Consumer Studies, 41, 188–198. https://doi.org/10.1111/ijcs.12324
-
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R. Springer International Publishing. https://doi.org/10.1007/978-3-030-80519-7
-
Hayani, N., & Alsukri, S. (2021). Dimensi e-Servqual dan dampaknya terhadap e-satisfaction layanan mobile banking. Jurnal Ilmiah Ekonomi Islam, 7. https://doi.org/10.29040/jiei.v7i2.2275
-
Hoo, W. C., Khee, K. H., Wolor, C. W., Teck, T. S., & Toh, J. S. (2024). Determinants of intention to use buy now pay later (BNPL). Journal of Lifestyle and SDG’s Review, 5. https://doi.org/10.47172/2965-730X.SDGsReview.v5.n01.pe02698
-
Hurwitz, C. (2024, August 5). What is doom spending? All about this financial trend. Oprah Daily. https://www.oprahdaily.com/life/work-money/a61743983/what-is-doom-spending/.
-
Idris, N. H., Rahim, F. A., & Kassim, S. (2019). The influence of digital technologies and consumer’s over-indebtedness. International Journal of Academic Research in Business and Social Sciences, 9. https://doi.org/10.6007/ijarbss/v9-i1/5504
-
Ighomereho, S. O., Ojo, A. A., Omoyele, S. O., & Olabode, S. O. (2022). From service quality to e-service quality: Measurement, dimensions and model. arXiv preprint arXiv:2205.00055. https://doi.org/10.48550/arXiv.2205.00055
-
Ispriyahadi, H., Wati, L. N., Saputra, W., Darwis, H., & Zaenudin, Z. (2022). Does fintech literation affect cashless society and individual shopping culture? IJCF. https://ijcf.ticaret.edu.tr/index.php/ijcf/article/view/298.
-
Jennifer, J., & Widoatmodjo, S. (2023). The influence of financial knowledge, financial literacy, and financial technology on financial management behavior among young adults. International Journal of Application on Economics and Business, 1, 344–353. https://doi.org/10.24912/ijaeb.v1i1.344-353
-
Jiménez-Solomon, O., Irwin, G., Melanie, W., & Christopher, W. (2024). When money and mental health problems pile up: The reciprocal relationship between income and psychological distress. SSM - Population Health, 25. https://doi.org/10.1016/j.ssmph.2024.101624
-
Koksal, M. H. (2016). The intentions of Lebanese consumers to adopt mobile banking. International Journal of Bank Marketing, 34, 327–346. https://doi.org/10.1108/IJBM-03-2015-0025
-
Krisnawati, A., & Sam, D. M. R. (2024a). The impact of debt literacy on over-indebtedness of buy now pay later (BNPL) users in West Java (pp. 203–213). https://doi.org/10.2991/978-94-6463
-
Leandro, J. C., & Botelho, D. (2022). Consumer over-indebtedness: A review and future research agenda. Journal of Business Research, 145, 535–551. https://doi.org/10.1016/j.jbusres.2022.03.023
-
Muninggar, R. A., & Rahardiansah, T. (2024). Pemberdayaan Hukum Pembayaran Digital melalui Penggunaan Teknologi Quick Response Code Indonesian Standar di Masyarakat. Jurnal Pembangunan Hukum Indonesia, 6(3), 394-417. https://doi.org/10.14710/jphi.v6i3.394-417
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. Copyright Retention and Open Access License
Authors retain copyright of their work and grant the journal non-exclusive right of first publication under the Creative Commons Attribution 4.0 International License (CC BY 4.0).
This license allows unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
2. Rights Granted Under CC BY 4.0
Under this license, readers are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material for any purpose, including commercial use
- No additional restrictions — the licensor cannot revoke these freedoms as long as license terms are followed
3. Attribution Requirements
All uses must include:
- Proper citation of the original work
- Link to the Creative Commons license
- Indication if changes were made to the original work
- No suggestion that the licensor endorses the user or their use
4. Additional Distribution Rights
Authors may:
- Deposit the published version in institutional repositories
- Share through academic social networks
- Include in books, monographs, or other publications
- Post on personal or institutional websites
Requirement: All additional distributions must maintain the CC BY 4.0 license and proper attribution.
5. Self-Archiving and Pre-Print Sharing
Authors are encouraged to:
- Share pre-prints and post-prints online
- Deposit in subject-specific repositories (e.g., arXiv, bioRxiv)
- Engage in scholarly communication throughout the publication process
6. Open Access Commitment
This journal provides immediate open access to all content, supporting the global exchange of knowledge without financial, legal, or technical barriers.