Towards a causal link between food insecurity and buy-now-pay-later use by young Australians

Abstract

Purpose: This paper aims to understand if buy-now-pay-later (BNPL) services, a digital type of credit that targets young consumers, acts as a protective or a risk factor for food insecurity among young consumers in Australia. Design/methodology/approach: The study uses survey data from a representative sample of young consumers aged 18–24 from all internal states and territories in Australia. Propensity score matching is used to test two hypotheses: BNPL drives young consumers to food insecurity, and food insecurity leads young consumers to use BNPL. Findings: There is evidence that BNPL use is driving young Australian consumers to experience food insecurity, but there is no evidence of food..