The Influence of Fear of Missing Out (FoMO), Financial Literacy, and Trust on the Use of Pay Later Service by Gen Z Through Mediating Consumer Satisfaction

Abstract

The rapid progress of digital financial services has encouraged an increase in the use of pay-later services, especially among Gen Z. This research aims to investigate the influence of Fear of Missing Out (FoMO), financial literacy, and trust on the use of pay-later services by Gen Z with consumer satisfaction as a mediating variable. Data was obtained through an online questionnaire, with a total sample of 41 Gen Z in Indonesia who had used pay later services. The data was then processed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis technique with SmartPLS version 3 software. The results of the direct influence analysis showed that FoMO had a positive effect on consumer satisfaction, financial literacy had no effect on consumer satisfaction, trust had a positive effect on consumer satisfaction, FoMO has no effect on the use of pay later services, financial literacy has no effect on the use of pay later services, trust has no effect on the use of pay later services, and consumer satisfaction has a significant positive effect on the use of pay later services. Meanwhile, in terms of indirect influence, consumer satisfaction is able to mediate the influence of FoMO on the use of pay-later services but is unable to mediate the influence of financial literacy on the use of pay-later services. Consumer satisfaction is also able to mediate the influence of trust on the use of pay-later services. These findings provide valuable implications for digital financial service providers in crafting marketing strategies and tailoring their offerings to meet the specific needs of Gen Z, ultimately increasing user satisfaction and trust.