Islamic Economic Review of Factors Influencing the Use of PayLater Platform and Generation Z Consumptive Behavior

The use of pay-later platforms continues to increase throughout the year and almost the majority are Generation Z (Gen Z). One of the main causes is the consumptive lifestyle of online shopping which has become a trend for later users. Low Islamic financial literacy worsens the situation. As a result, many of them are trapped in a cycle of debt which hurts their mental health. The qualitative method used aims to collect important information about the factors that influence the use of pay-later platforms and consumer behavior from the perspective of Gen Z as well as the Islamic economic view of the phenomenon. The research location is in Wayharong Village, Air Naningan District, Tanggamus Regency, Lampung Province. Five factors were found, namely installment payments for purchasing certain goods, promotional appeal, fulfilling lifestyles, attractive advertisements, and following their idols. From an Islamic economic perspective, it reveals two pros and cons regarding the two themes. The use of pay later in economic activities is permitted if it does not contain usury elements and is already labeled as sharia or supervised by the National Sharia Council (DSN) of the Indonesian Ulema Council (MUI). While the cons are because of the additional costs or late fines required in advance. The use of the pa-later platform to fulfill the consumptive lifestyle of Gen Z is strictly prohibited. Because the purpose of its use is not based on fulfilling needs based on Islamic economic principles.