Figure 1. describes the paylater services that are widely used in Indonesia, the first Shopee Paylater, GoPaylater, Kredivo, Akulaku Paylater, etc. The development of e-commerce in Indonesia provides an easy way for paylater to develop. However, the ease of access to paylater services also poses the risk of debt dependence and impulse buying behavior that can negatively impact the financial condition of users (Mappadang et al., 2025). Despite providing convenience, OJK data (2024) shows that 23% of paylater users experience late payments that have the potential to damage credit scores. A study by Sakina Sihombing (2021) found that 34% of Generation Z experienced impulsive buying due to paylater with an average debt of IDR 1.2 million per person. Previous research confirms that materialistic traits have a strong relationship with impulsive and compulsive purchasing behaviors, especially when combined with digital payment methods such as credit cards or paylater services. The use of this payment method reinforces unplanned consumptive

tendencies, which can negatively impact financial stability (Halim & Christian, 2024).

Given this background, conducting this research is highly relevant as it provides both scientific and practical contributions to understanding the dynamics surrounding the use of paylater services, personal financial management, and consumption patterns among Generation Z. In line with this, the study is entitled: "The Use of Paylater Services on Consumption Patterns Mediated by Personal Money Management in Gen Z with Socioeconomic Factors as Control Variables."

Paylater is a financing method that enables consumers to purchase goods or services upfront and defer payment to a later date. This method is similar to a credit system, where service providers fund payments for goods or services acquired by users. After making a transaction, users will get a credit limit that needs to be repaid within a certain period, either in one payment or through installments (Waluyo et al., 2022).

Paylater is widely used by e-commerce, marketplaces, digital companies, and others so that consumers can easily make transactions and meet their living needs (Ningsih Wijaya et al., 2024). Paylater services are a practical solution and can realize purchase desires that have not been achieved. (Waluyo et al., 2022) However, even though paylater provides convenience, if used inappropriately, it can cause financial risks, such as falling into consumptive debt. (Scott, et al., 2024)

Definition of Socio-Economic

Socioeconomics is a concept that refers to the social and economic conditions of individuals or groups in society, which includes aspects of income, education, employment, and other social status that affect consumption behavior and financial management (Fook & McNeill, 2020).

Max Weber's Theory of Stratification and Social Structure (1922) states that social class, economic status, and cultural background influence individual economic behavior and consumption patterns. In this context, socioeconomic variables function as moderation variables that affect perceptions and behaviors towards digital financial services, including financial management and consumption patterns.

Definition of Financial Planning

Personal money management is the ability of individuals to plan and manage the use of funds effectively so that their living needs are met without causing financial problems in the future (Mappadang et al., 2025). The theory of financial planning emphasizes the importance of financial planning which

includes cash flow management, expenditure control, investment, and risk management to achieve financial well-being (Yeo et al., 2024). The Self-Control Theory from Gottfredson & Hirschi (1990) in A General Theory of Crime states that the level of self-control and discipline in financial management is important for maintaining healthy consumptive behavior. This concept was further developed by Bandura (1986) through Social Cognitive Theory, which highlights the importance of self-efficacy and social learning in shaping individuals' capacity to manage their finances independently. The Financial Decision Model from Mayer and Solomon (1999) states that personal money management is influenced by the perception of control, financial knowledge, and user experience, which directly influences consumption patterns and financial behavior.

This research is unique compared to previous studies, such as Novarianty and Hidayat (2024) which only focused on the effect of the use of paylater on student financial management in Bandung in a descriptive manner. In contrast to that, this study covers the territory of Indonesia nationally and uses a quantitative approach with the SEM method, so that it is able to analyze the direct and indirect relationship between paylater use, personal money management, and consumption patterns more comprehensively. The addition of control variables in the form of socioeconomic factors also provides added value in understanding the consumption dynamics of Generation Z that have not been explained in previous research.

Based on the theoretical study that has been described, a research framework can be made that can be described as follows:

The respondents in this study were a sample of Generation Z as many as 410 respondents using questionnaires. Meanwhile, secondary data is obtained from literature sources, previous research, and journals. Of the total 410 questionnaires that were returned and could be processed, which could then be tested and analyzed. The rate of return of respondents can be seen in table 4.1

Table 1. Questionnaire Return Rate

This study examines the impact of paylater service usage on consumption patterns, with personal money management acting as a mediating variable, and socioeconomic factors serving as control variables among Generation Z. The research sample consists of 375 individuals from Generation Z.

The study employed the PLS-SEM method using SmartPLS software, chosen for its ability to analyze complex relationships between variables, including both direct and indirect effects (J. Hair et al., 2019). The choice of smartpls as an analytical tool is also because smartpls is able to process data with an unlimited number of samples, does not require normal data distribution, and can handle models with reflective and formative variables (Garson, 2016).

Evaluation is carried out through convergent validity testing by looking at the Outer loading value> 0.70 and the Average Variance Extracted value> 0.50, discriminant validity through the Fornell-Larcker method, HTMT and cross loading, and construct reliability testing using Cronbach's Alpha and

Composite Reliability values> 0.70 (Hair et al., 2017). If all indicators meet these criteria, the measurement model is declared feasible and the analysis can proceed to the inner model stage.

Source: SmartPLS output, (2025)

Table 9. R Square Test Results

Based on the R Square test results, the Consumption Pattern variable is influenced by its independent variables by 0.644, or 64.4%, indicating a substantial explanatory power. The remaining 35.6% is attributed to other factors outside the scope of this study. Additionally, the Personal Money Management variable is explained by its independent variable by 0.286, or 28.6%, while the remaining 71.4% is influenced by other variables not examined in this research.

This study finds that the use of paylater services significantly influences the consumption patterns of Generation Z. This indicates a meaningful relationship, as paylater allows individuals to purchase desired goods without the need for immediate cash, making their consumption behavior more closely linked to the availability and use of such services. Additionally, paylater usage shows a significant positive effect on personal money management—suggesting that responsible use of paylater services is associated with improved financial management among Generation Z. Furthermore, socio-economic factors are shown to have a causal impact on personal money management; the better an individual's socio-economic status, the more prudent and effective their money management tends to be.

Personal Money Management has a significant positive influence on Consumption Patterns. Effective financial management enables individuals to closely monitor their spending, recognize patterns, and identify which expenses can be reduced or eliminated. This study also confirms that good personal money management plays a key mediating role in the relationship between paylater usage and consumption patterns. With adequate financial knowledge and discipline, Generation Z can utilize paylater services responsibly while minimizing potential negative impacts on their consumption behavior.

To improve financial management and consumption patterns of Generation Z, especially in the context of using paylater services. First, there is a need to increase financial literacy that is comprehensive and sustainable through educational programs involving various parties, such as educational institutions, fintech platforms, and the government, so that the younger generation is able to understand the risks and benefits of using digital financial services wisely. Second, fintech platforms and paylater service providers are expected to develop educational features and spending restrictions aimed at minimizing excessive consumptive behavior and uncontrolled debt.

Furthermore, it is important to pay attention to socio-economic aspects in designing educational strategies so that the approach provided is more relevant and effective according to the conditions of each individual. Finally, this study also recommends the need to develop stricter policies and regulations to protect consumers, especially the younger generation, from potential financial risks resulting from the use of paylater services, so that they can manage their finances responsibly in the digital era.